Property in Egypt is won or lost at the registry. The Civil Code (Law No. 131 of 1948) provides that ownership of real estate does not pass until the rules of the Real Estate Registration Law, Law No. 114 of 1946, are met, and the buyer who holds only a signed contract has a personal claim, not title. This article reads the statutes we apply from our Cairo office: registration after the 2022 amendments, the limits on foreign ownership, seller and title checks, pre-emption, building compliance, the 2026 change to the disposal tax and the lease regimes.
The statutory framework: Civil Code, Registration Law and the special laws
The Civil Code, Law No. 131 of 1948, supplies the contract rules: sale from Article 418, lease from Article 558, pre-emption in Articles 936 to 943 and the official mortgage from Article 1030. The Registration Law, Law No. 114 of 1946, as amended by Law No. 9 of 2022, controls how rights in real estate are created and proved. Law No. 230 of 1996 governs ownership by non-Egyptians, Law No. 4 of 1996 and Law No. 164 of 2025 govern the lease regimes, and the Building Law, Law No. 119 of 2008, controls construction.
Tax adds a final layer. The Income Tax Law, Law No. 91 of 2005, taxes disposals of built property, and Law No. 151 of 2026 replaced the relevant provision from 29 July 2026. A property file that is correct under the Civil Code can still fail on registration, building status or tax, so we check the statutes in a fixed order and record which document answers each requirement before the client pays a significant sum.
Ownership passes by registration: Civil Code Article 934 and Article 9 of Law No. 114 of 1946
Article 934 of the Civil Code states that in real estate, ownership and other real rights do not pass, between the parties or against third parties, unless the provisions of the registration law are observed. Article 9 of Law No. 114 of 1946 applies it: every act that creates, transfers, changes or extinguishes a principal real right in real estate, and every final judgment establishing such a right, must be registered. Without registration the right is not created or transferred, and the unregistered act produces only personal obligations between the parties.
Article 12 bis adds that no proof of date is accepted for instruments that must be registered, which removes the old habit of relying on a notarized date to give a private contract force against others. Article 12 requires accessory rights such as a mortgage to be recorded by notation. Our standing advice is to treat the registered title as the end of every purchase.
Customary sales and the claim for validity and enforcement
Millions of Egyptian purchases begin with a customary contract. Under Article 428 of the Civil Code the seller must do whatever is needed to transfer the right and must refrain from any act that makes the transfer impossible or difficult, which gives the buyer a claim to compel registration. Article 15 of Law No. 114 of 1946 requires claims for the validity of contracts over real rights to be registered or noted, and Article 17 gives the judgment effect against later acquirers from the date of that registration or notation.
The protection has limits. A buyer who registers the claim is protected from the date of registration, but Article 17 does not defeat a third party who acquired in good faith before it, and it does not apply to a judgment noted more than five years after it became final. Article 10 bis allows registration of facts that establish a right, including possession in good faith for five years supported by a deed, even a private one, but the right cannot be asserted against third parties until it is registered. We file early.
Registration procedure after Law No. 9 of 2022
Law No. 9 of 2022, in force since May 2022, shortened the file. The applicant now provides the identity, capacity and signing powers of the parties, the official digital map with the coordinates of the property, the title deed, and an acknowledgment of any rights over the property. The requirement to prove the full chain of earlier ownership was removed, and an inheritance application now needs only the death certificate and the deceased's title. Applications may be submitted electronically to the office in whose area the property lies (Article 20 of Law No. 114 of 1946).
The amendments also created a route for ownership established by material facts, decided by the directorate within thirty days against a fixed fee reported as EGP 500, and cut the time for the summary-matters judge to rule on a challenge to a refusal to seven days, the decision remaining final. Under Article 35, an applicant who disputes a refusal or a requirement has ten days to ask for a provisional number. Submitting forged documents now carries a minimum of one year in prison and a fine of up to EGP 50,000.
Foreign ownership under Law No. 230 of 1996: conditions, building and holding periods
Article 2 of Law No. 230 of 1996 permits a non-Egyptian to own built property or vacant land on three conditions. He may own no more than two properties in the whole country for private housing for himself and his family, meaning spouse and minor children, without prejudice to the right to own property needed for an activity licensed by the Egyptian authorities. Each property must not exceed 4,000 square meters, and none may qualify as an antiquity. The Prime Minister may waive the first two conditions, and a decision published on 1 September 2024 delegated his powers under Articles 2 and 5 to the Minister of Justice.
Article 4 requires a foreigner who acquires vacant residential land to start construction within five years from registration of the ownership, with the ban on disposal extended by any delay. Article 5 bars any disposal that transfers ownership within five years of acquisition, unless the Prime Minister permits it. Firms advising on the law report that transactions against its conditions are void, so the point must be settled before signing. Agricultural land is closed to foreigners under Law No. 15 of 1963, and desert land under Law No. 143 of 1981 is limited to Egyptians and companies at least 51 percent Egyptian-owned.
Seller, authority and title: Articles 466 and 13 and the mortgage rules
Article 466 of the Civil Code lets a buyer ask to annul the sale of a specific thing the seller does not own, and it says the rule applies even where the thing is real estate whether or not the contract was registered. In every case the sale does not bind the true owner, even if the buyer ratifies the contract. So we trace the seller's title to its source and compare names, parcel, area and boundaries with the contract and the official map.
Article 13 of Law No. 114 of 1946 requires inheritance to be registered, and until that is done no disposal by an heir over the property may be registered, so a seller who acquired by inheritance must show that step. A mortgage binds the property in any hands: Article 1030 of the Civil Code gives the creditor priority, Article 1031 requires an official instrument, and Article 12 of Law No. 114 requires notation of the right. A power of attorney needs a separate check of scope, validity and revocation.
Sale terms: price, retention of title, delivery and warranties
Article 418 of the Civil Code defines sale as a contract by which the seller transfers ownership of a thing or another financial right against a cash price. Article 430 lets the seller make transfer of ownership conditional on payment of the whole price, even after delivery, and, where the price is paid in installments, lets the parties agree that the seller keeps part of the paid amount as compensation if the sale is rescinded, subject to the judge's power to reduce it. Those provisions apply even if the parties call the sale a lease.
Delivery under Article 435 means placing the property at the buyer's disposal so that he can possess and use it without obstacle. Article 439 makes the seller guarantee the buyer against interference with the use of the property, and Article 447 makes him liable for missing guaranteed qualities and for defects that reduce its value or use, even if he did not know of them, unless the buyer knew or could have found them by ordinary inspection. Under Article 452 the warranty claim lapses one year after delivery.
Pre-emption: Articles 936 to 943 of the Civil Code
Pre-emption lets a person step into the buyer's place on a sale of real estate. Article 936 lists the holders: the bare owner when the usufruct is sold, the co-owner when part of the common property is sold to a stranger, the usufructuary when the bare ownership is sold, and, in the cases it lists, the neighboring owner. Article 939 excludes sales by public auction, sales between ancestors and descendants, between spouses and between relatives to the fourth degree, and between in-laws to the second degree.
The deadlines are short. Under Article 940 the person entitled must declare his wish to take by pre-emption to the seller and the buyer within fifteen days of the official notice or lose the right. Article 942 requires the declaration to be official and requires the full real price to be deposited with the court within thirty days of the declaration, before the suit. Under Article 943 the suit must be brought against both within thirty days. We check for pre-emption holders before closing, because a hidden co-owner can unwind the buyer's position.
Building compliance, violations and common parts
The Building Law, Law No. 119 of 2008, controls licensing and completion, and Law No. 187 of 2023 on the reconciliation and regularization of building violations repealed the earlier reconciliation law, Law No. 17 of 2019. We ask for the building license, the approved plans and proof that any violation has been regularized, and compare the unit with the licensed plans, because a registered unit built in breach of its license can still be exposed to enforcement.
Under Article 856 of the Civil Code, the owners of different floors or flats are co-owners of the land and of the parts intended for common use, including foundations, main walls, entrances, courtyards, roofs, lifts, passages and pipes outside the units, unless the title deeds say otherwise. These parts cannot be divided, and no owner may dispose of his share separately from his unit. When we review an apartment purchase we check the common parts, charges and any pending violation proceedings.
The 2026 real estate disposal tax
The real estate disposal tax is charged at 2.5 percent of the gross value of the disposal of built property or building land outside villages, whether or not the contract is registered, under the Income Tax Law, Law No. 91 of 2005, as replaced by Law No. 151 of 2026 with effect from 29 July 2026. The seller must pay within sixty days of the disposal, replacing the earlier thirty days, and late-payment charges run from the next day. The gross value is taken from the contract, and the Tax Authority carries the burden of proving a different value.
The law also taxes heirs who dispose of inherited property and owners who built for their own use, however many the disposals, and it does not treat them as traders unless the Authority proves trading. Disposals made on or before 28 July 2026 stay under the old text, so the date of the disposal decides which rules apply.
Leases: Civil Code, Law No. 4 of 1996 and the 2025 reform
Article 558 of the Civil Code defines lease as a contract by which the lessor lets the lessee use a specific thing for a fixed period against a known rent. A lease with no fixed period is treated as made for the rent period, and for houses, shops and offices with a rent period of four months or more, Article 563 requires two months' notice before the end of the period. Article 11 of Law No. 114 requires registration of leases above nine years, otherwise the excess is not enforceable against third parties.
Law No. 4 of 1996 removed leases of previously unlet premises, and premises whose leases ended without a right to remain, from the old rent laws, Law No. 49 of 1977 and Law No. 136 of 1981, so they follow the Civil Code and the parties' contract. Law No. 164 of 2025 reformed the old regime: it was issued on 4 August 2025 and applies from the day after its publication in the Official Gazette. It covers residential units and units let to natural persons for non-residential use under Laws No. 49 of 1977 and No. 136 of 1981. Residential contracts end seven years after it takes effect, and non-residential contracts with natural persons end after five years, unless the parties agree to end them earlier. We check which regime governs every lease.
What we review on an Egyptian real estate transaction
When our Cairo office reviews a transaction we run the same sequence. We confirm that the buyer qualifies under Law No. 230 of 1996 where relevant, trace the seller's title and the registry record under Articles 9 to 17 of Law No. 114 of 1946, test every power of attorney, read the contract against Articles 418 to 452 of the Civil Code, check pre-emption and building status, and model the 2.5 percent disposal tax under the 2026 text. For leases we check the regime, the notice and any registration above nine years.
See also: our Egypt company formation guide and our Gulf company formation comparison, plus our commercial and corporate practice.
Frequently asked questions
Does a signed sale contract make me the owner in Egypt?
No. Article 934 of the Civil Code and Article 9 of Law No. 114 of 1946 provide that ownership passes only on registration, and an unregistered contract creates only personal obligations. If the seller refuses to register, bring and register a claim for validity and enforcement under Article 15 of Law No. 114 of 1946.
Can a foreigner buy property in Egypt?
Yes, within Article 2 of Law No. 230 of 1996: no more than two properties for private housing, each up to 4,000 square meters and not an antiquity, unless the Prime Minister grants an exemption. Agricultural land is closed to foreigners under Law No. 15 of 1963.
Can a foreigner resell quickly?
Not within five years of acquiring the property. Article 5 of Law No. 230 of 1996 bars disposals that transfer ownership before five years unless the Prime Minister permits, and Article 4 requires construction on vacant land to start within five years of registration.
What did Law No. 9 of 2022 change for registration?
It reduced the documents, removed the proof of the whole chain of earlier ownership, allowed electronic submission, set a thirty-day decision for ownership by material facts, and cut the ruling time on a refused application to seven days.
When can I claim pre-emption on a neighboring sale?
Only if Article 936 of the Civil Code gives you the right, you declare it officially within fifteen days of the official notice under Article 940, deposit the full price within thirty days under Article 942 and sue within thirty days under Article 943.
How long do I have to complain of a defect in a purchased property?
Article 447 of the Civil Code makes the seller liable for defects that reduce value or use, even if he did not know of them, and Article 452 ends the warranty claim one year after delivery unless the seller agreed to a longer period.
What is the disposal tax on a sale in 2026?
Under Law No. 151 of 2026, 2.5 percent of the gross value of the disposal, payable by the seller within sixty days of the disposal for disposals made from 29 July 2026, on the value stated in the contract unless the Authority proves another.
Can your firm review our property purchase or lease before we pay?
Yes. Our Cairo office checks title, authority, registration, tax and contract terms against the statutes above. Please contact us through our contact page.