Many of our clients ask for a diagram and explanations regarding various issues about process of apartment sale.
DEWELOPER land and building documents
There are two types of land registration and both correct ones. The land may or may not be registered in the so-called green contract court. If the land and building have or do not have green contract, these documents are made available to the buyer at the time of the transaction. If the land and building do not have a green contract in accordance with the law should be attached documents from the Municipal Office Hurghada / CITY COUNCIL / certifying that they do not have a mortgage or loan installments on them.
BOTH TYPES OF PROPERTIES MAY BE SOLD TO THE BUYER.
document – POA – Power of Attorney – a notarial authorization to dispose of an act or thing. Tawkil is issued as an authorization for, for example, a lawyer to perform a specific act and in the case of selling the item / stuff / car / motor etc … The tawkil chronology is preserved and the previous orginals are passed to the new owner. EVERY TAWKIL HAS A UNIQUE NUMBER. Many apartments are sold only with the help of a tawkil document / with an accompanying buy / sell contract / or for the purchase / sale contract itself.
An additional form of registration is “signature of validation” – the signatures of the signatures of both parties on the purchase contract, which is approved by the court in Hurghada.
This procedure includes: issuing a tawkil for a lawyer who will represent the buyer in a court in Hurghada and deal with the whole process alone without the participation of the client.
WARNING. The TAWKIL document is distinguished between: general and plural. In the first case, the owners may sell the property only together / the issue of mixed marriages or people who finance the apartment together. However, it is a solution blocking sales in the event of a conflict in the family or divorce between the spouses
In the second case, every person in the tawkil has the right to sell the property without the presence of the other person. This is important in the case of property inheritance rights in Your orginal country or in Egypt and I usually recommend them to our clients if they trust their partners 100%. Even children of our clients can be entered into such a tawkil.
SALE RESELLING PROCESS
CONTRACT FOR SALE PURCHASE – we prepare it in the language required by Client and Arabic language as well. The individual paragraphs are next to each other and have the same numbering. Each party to the contract is initialed as well as signed by both parties.
If the building has a green contract, you can authorize a lawyer with a tawkil document to get a green contract for a flat in Cairo or Hurghada. Real estate registered with green contract can have only two and pay an annual tax of about 2000 LE
If the building does not have a green contract, you can authorize a lawyer with a tawkil document to register a purchase and sale contract in a court in Hurghada, the so-called “signature of validation” or confirmation of the signature of both parties. You can have any amount of such properties.
tawkil is issued in the notary office Shara’a kari from one owner for the second / or authorized representative / and the sale of the flat can only take place by issuing such a document. However, we recommend that in addition to tawkil, always make a purchase contract to include all legal and notarial information in it.
Tawkil is displayed regardless of whether the building has or does not have a green contract. Such properties can be of any quantity.
At present, a tax of 500-1500 EGP per annum is paid from registered apartments with a Tawkil document. Very often, however, it is not charged.
ADDITIONAL COSTS FOR SALE OF FLAT
LEGAL SERVICE EGYPTSWISS – full supervision over document control and sales process as well as the cost of tawkil – about 300-400 €
CONTRACT REGISTRATION FOR SALE IN THE HURGHADA COURT – signature of validation – costs of lawyers – various. Client is charged From USD 300 up
REGISTRATION OF GREEN CONTRACT IN THE COURT OF HURGHADA / CAIRO — costs of lawyers – various. Client / approximately USD 1,500-2,000
MEASURE OF THE ELECTRIC ENERGY COUNTER in the name of the new owner / update March 2018 / – costs by the Customer
The first owner must purchase a new counter. to do this, he authorizes a lawyer’s TAWKIL, who carries out a procedure on his behalf in an electrical company. The owner receives a ready meter, which is installed by an electric company. Currently, all new counters are on PRE-PAID cards with any top-up. COST OF INSTALLING A NEW COUNTER IS APPROX. 200- 250 USD / depends on the exchange rate / The electric company supplies and installs a new meter and grants a one-off loan of 100 LE
another owner authorizes the lawyer to “rewrite” the meter in his name or it is done directly by the seller. When rewriting, we have two options. Either change of name or application for a new meter / which are currently mandatory in 2018 / This second option is the best because it does not double the cost and the new counter will still be required to buy. The cost is about 200-250 USD
annual service fees for building / maintenance of swimming pools, cleaning, salary for protection, lifts, etc. / so-called maintenence – the cost of the fee is very different and ranges from 150 to 2000 USD. The average cost is about 200 usd / year.
tax on the purchase and registration of real estate / Tawkil or Signature of validation / in the amount of approximately 850-1400 EGP / very often not charged
© Joanna EgyptSwiss