Four Obstacles to Real Estate Registration and Proof of Ownership Before the Notarization Authority


صياغة إنجليزية قانونية مناسبة للموقع: To establish legal ownership of real estate assets, ownership must be formally registered with the Real Estate Registration Authority. Real estate registration serves to notify the public of all transactions affecting the property, as well as any encumbrances, obligations, or liabilities attached to it. It should be noted that ownership of real estate and other rights in rem are neither legally established nor transferred except through registration with the Real Estate Registration and Notarization Authority. This authority is responsible for examining and verifying ownership in order to complete the transfer of title from the seller to the buyer, in addition to carrying out a wide range of other legal and administrative functions. لو حابة، أقدر كمان أخلي الصياغة **أكثر رسمية وقانونية** بما يناسب موقع مكتب محاماة.

When conducting a legal review, the legal researcher applies a wide range of laws and regulations issued by other competent authorities. In certain cases, the legislator has prohibited registration where the requirements of those laws and regulations have not been complied with. As a result, registration cannot be completed in many cases. This has led many property owners to refrain from registering their ownership rights, despite real estate assets representing a fundamental component of the country’s economic wealth. As explained by Ebtisam Habib, former Head of the Real Estate Registration and Notarization Authority, there are several laws and regulations issued by other authorities under which registration is prohibited where citizens fail to comply with their provisions, including the following:

First: Law No. 119 of 2008, promulgating the Building Law. Article 66 of this Law prohibits the registration of any transaction involving a change in the use of a building, or any unit thereof, to a purpose other than that for which it was originally licensed. This raises a question regarding the relationship between real estate registration and the designated use of buildings, particularly since registration serves to establish ownership after examining and verifying the relevant title documents.

Second: Decree-Law No. 119 of 1952 concerning guardianship over property. Article 7 of this Decree provides that a father may not dispose of real estate, commercial premises, or securities on behalf of a minor if their value exceeds EGP 300 without obtaining prior authorization from the court. The court may only refuse such authorization if the proposed transaction is likely to place the minor’s assets at risk or involves unfairness exceeding one-fifth of the property’s value. The application of this provision has resulted in the suspension of many registration applications pending the father’s obtaining authorization from the competent court. In our view, the threshold of EGP 300 is extremely low and no longer appropriate as a basis for suspending registration procedures under current circumstances. Therefore, it should be increased to a more reasonable and suitable amount.

Third: Law No. 11 of 2013, amending certain provisions of Law No. 91 of 2005 concerning Income Tax. Article 42 of the said Law provides that, in the case of registering property transactions, the Real Estate Registration Offices shall collect the applicable tax and remit it to the Egyptian Tax Authority within thirty days from the date on which the registration application is submitted, unless the tax has already been paid to the Tax Authority before that date. The existence of this provision has discouraged many concerned parties from proceeding with registration, particularly because the person who usually submits the registration application is the buyer, while the party legally liable for paying the tax is the seller as the disposing party. It should also be noted that, in many cases, the amount of tax due may exceed the registration fees themselves.

Fourth: Law No. 83 of 2006 and its Executive Regulations concerning registration fees for agricultural land and real estate. Under this Law, registration fees were established on a graduated basis according to the area of the property, whether agricultural land or built property, with a maximum cap on registration fees, including the fees of the Egyptian Survey Authority, amounting to EGP 2,000. The purpose of this provision was to encourage citizens to register their ownership rights. However, in its reports, the Central Auditing Organization interpreted the provision concerning the multiplicity of fees based on the number of transactions as meaning that fees should instead be multiplied according to the number of persons involved. This interpretation was not the intended purpose of the Law and has resulted in many citizens refraining from registering their properties.

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