Board of Directors Decision No. (117) for the Year 2023

1 Decision of the Board of Directors of the General Authority for Financial Supervision No. (109) for the Year 2015, dated 30/9/2015 Regarding the Regulations for Registration, Renewal, and Striking Off in the Registers of Real Estate Agents and Real Estate Brokers Last amended on 25/5/2023

The Board of Directors of the General Authority for Financial Supervision, Having reviewed Law No. (159) of 1981 on Joint Stock Companies, Commandite by Shares Companies, and Limited Liability Companies and its Executive Regulations; Having reviewed Law No. (148) of 2001 on Real Estate Financing, amended by Presidential Decree No. 55 of 2014; Having reviewed Law No. (10) of 2009 on Regulating Supervision over Non-Banking Financial Markets and Instruments; Having reviewed Cabinet of Ministers Decisions No. (1) of 2001 issuing the Executive Regulations for Real Estate Financing Law, and Nos. (1) and (2) of 2015 amending said Executive Regulations; Having reviewed Presidential Decree No. (192) of 2009 issuing the Basic System for the General Authority for Financial Supervision; Having reviewed the approval of the Authority’s Board of Directors in its session No. (13) held on 30/9/2015; Has Decided:

Article 1: Real Estate Agents and Real Estate Brokers in Financing The Real Estate Agent is every natural person who carries out the procedures for selling real estate by public auction in case an investor in the field of real estate financing defaults, based on a commission from an execution judge. The Real Estate Broker (in the field of real estate financing) is every natural or legal person who performs brokerage duties between the financer and the investor by providing technical advice to the investor, informing them of financing risks, and preparing and equipping the file for submission to the financer, in exchange for a financial fee borne by the financer. The activity of a Real Estate Agent or Broker may not be practiced except after registration in the register maintained by the Authority for this purpose, subject to the conditions specified in this Decision. Real Estate Agents and Brokers shall comply with the rules and standards governing their practice as set forth in this Decision. (Note: The Decision was amended by Board of Directors Decisions No. 2 of 2017 dated 18/1/2017 and Decision No. 117 of 2023 dated 25/5/2023.)

2 Article 2: Conditions for Registration in the Register of Real Estate Agents The following conditions must be met for registration in the Authority’s Register of Real Estate Agents:

1. Obtaining a Bachelor of Laws degree or its equivalent.
2. Being a member of the Bar Association at the level of Court of Appeal for no less than three years, and that no disciplinary rulings have been issued against them.
3. Passing a training program at the Authority or one of its accredited bodies.
4. Not having previously been sentenced to a criminal penalty, or for a crime involving breach of honor or trust, or declared bankrupt/insolvent within 2 months, unless their reputation has been restored.
5. Not having previously been dismissed from employment or a public office, or struck off the Bar Association by a final disciplinary decision, unless re-registered or restored to good standing.
6. Payment of the prescribed registration service fee, as detailed in Article 3 of this Decision.
7. Submitting an application on the prescribed form, as detailed in Article 3 of this Decision. Real Estate Agents registered with the Authority who do not meet conditions 1 and 2 at the time of this Decision’s issuance must complete a course in legal procedures from an accredited body.

Article 3: Registration Application for the Register of Real Estate Agents Applicants for registration in the Register of Real Estate Agents must submit an application on the form prepared by the Authority, accompanied by:

1. Educational qualification certificate.
2. Certificate of attendance at the training program at the Authority or one of its accredited bodies.
3. Certificate of passing a training course in legal procedures from an accredited body.
4. Bar Association registration certificate confirming no disciplinary rulings have been issued against them.
5. Recent criminal record statement.
6. Certificate confirming no bankruptcy or insolvency rulings have been issued.
7. Copy of the National ID card.
8. Copy of the tax card.
9. Declaration committing to work in accordance with the Real Estate Financing Law, its Executive Regulations, and all other relevant decisions issued by the Authority.
10. Receipt of payment for registration services.

Article 4: Registration Applications for Non-Egyptians in the Register of Real Estate Agents Non-Egyptian applicants must attach the following to the form referenced in Article 3:

1. Document certifying authorization to practice the profession abroad, certified by the competent authority in their country and attested by the Ministry of Foreign Affairs.
2. Educational qualification certificate, certified by the competent authority in their country and attested by the Ministry of Foreign Affairs.
3. Certificate of attendance at the training program at the Authority or one of its accredited bodies, and passing the examination prepared by the Authority.
4. Copy of a valid passport.
5. Residence and work permit.
6. Document equivalent to a recent criminal record statement, certified by the competent authority in their country and attested by the Ministry of Foreign Affairs.

3 Article 5: Registration in the Register of Real Estate Agents The Authority shall issue a certificate to approved applicants, specifying their registration date and number in the Real Estate Agents’ registers. Registration is renewed every three years, provided there is no violation of legal provisions or registration conditions and the prescribed continuity requirements are met.

Article 6: Renewal of Registration in the Register of Real Estate Agents Applicants whose registration has been valid for three years, or since their last renewal date, must submit a request to the Authority on the prescribed form to renew their registration. The following conditions apply for renewal:

1. Passing the Authority’s accredited refresher training program (applicable only to the first renewal).
2. No disciplinary measures have been imposed by the Authority during the registration period, unless the grounds or duration of the penalty have expired.
3. Attaching to the renewal request the documents referenced in items 4 to 9 of Article 3.
4. Non-Egyptians must provide proof that their residence and work permit remains valid.
5. Submitting a receipt for payment of renewal service fees.
6. Passing the personal interview or examination specified by the Authority for this purpose. (Note: Item 6 was added to Article 6 by Board Decision No. 117 of 2023 dated 25/5/2023.)

Article 7: Rules and Standards for Practicing Real Estate Agents Every Real Estate Agent must comply with the following rules in practicing their activity:

1. Ensuring no conflict exists between their work as a Real Estate Agent and their work as a creditor agent, judicial liquidator, or judicial custodian.
2. Registering in their records all execution procedures they have carried out, preserving related documents, and providing certified copies upon request by the Authority or competent court.
3. Working in accordance with the Real Estate Financing Law, its Executive Regulations, and all relevant decisions issued by the Authority.

Article 8: Conditions for Continuation of Registration in the Register of Real Estate Agents Continuation of registration requires maintaining the conditions specified in items (2), (4), and (5) of Article 2, and not violating the commitments set forth in Article 7.

4 Article 9: Conditions for Registration in the Register of Real Estate Brokers – Natural Persons The following conditions must be met for registration of natural persons in the Authority’s Register of Real Estate Brokers:

1. Obtaining a suitable higher education degree.
2. Possessing at least 3 years of experience in financing or credit.
3. Passing a training program at the Authority or one of its accredited bodies.
4. Not having previously been sentenced to a criminal penalty, or for a crime involving breach of honor or trust, or declared bankrupt/insolvent within 4 months, unless their reputation has been restored.
5. Payment of the prescribed registration service fee.
6. Submitting an application on the prescribed form, as detailed in Article 10 of this Decision.

Article 10: Registration Application for the Register of Real Estate Brokers – Natural Persons Natural person applicants must submit an application on the form prepared by the Authority, accompanied by:

1. Educational qualification certificate.
2. Certificate of passing the training program prepared by the Authority or one of its accredited bodies.
3. Experience certificates.
4. Recent criminal record statement.
5. Certificate confirming no bankruptcy or insolvency rulings have been issued.
6. Copy of the National ID card.
7. Copy of the tax card.
8. Declaration committing to work in accordance with the Real Estate Financing Law, its Executive Regulations, and all other relevant decisions issued by the Authority.
9. Receipt of payment for registration services. Non-Egyptians must submit the documents referenced in items 2 to 6 of Article 4.

Article 11: Registration in the Register of Real Estate Brokers – Natural Persons The Authority shall issue a certificate to approved applicants, specifying their registration date and number in the Real Estate Brokers’ registers. Registration is renewed every three years, provided there is no violation of legal provisions or registration conditions and the prescribed continuity requirements are met.

Article 12: Renewal of Registration in the Register of Real Estate Brokers – Natural Persons Applicants whose registration has been valid for three years, or since their last renewal date, must submit a request to the Authority on the prescribed form. The following conditions apply for renewal:

1. Passing the Authority’s accredited refresher training program (applicable only to the first renewal).
2. No disciplinary measures have been imposed by the Authority during the registration period, unless the grounds or duration of the penalty have expired.
3. Attaching to the renewal request the documents referenced in items 4 to 9 of Article 10.
4. Non-Egyptians must provide proof that their residence and work permit remains valid.
5. Submitting a receipt for payment of renewal service fees.
6. Passing the personal interview or examination specified by the Authority for this purpose. (Note: Item 6 was added to Article 12 by Board Decision No. 117 of 2023 dated 25/5/2023.)

5 Article 13: Conditions for Registration in the Register of Real Estate Brokers – Legal Entities The following conditions must be met for registration of legal entities in the Authority’s Register of Real Estate Brokers:

1. Taking the form of an Egyptian joint stock company, with its purpose limited to practicing brokerage in real estate financing and development, and real estate brokerage. The Authority may approve other non-conflicting purposes for the company.
2. The Managing Director or person responsible for actual management is registered as a real estate financing broker in the Authority’s registers.
3. No bankruptcy rulings have been issued against the company.
4. Payment of the prescribed registration service fee.
5. The legal representative submitting an application on the prescribed form, as detailed in Article 14 of this Decision.

Article 14: Registration Application for the Register of Real Estate Brokers – Legal Entities The legal representative of a legal entity applicant must submit an application on the form prepared by the Authority, accompanied by:

1. Company’s memorandum and articles of association.
2. Recent official extract from the Commercial Register.
3. For companies established for more than one financial year, an auditor’s report and financial statements for the last year.
4. Proof that the Managing Director or person responsible for actual management is registered in the Authority’s Real Estate Brokers’ register.
5. Curriculum vitae of the Chairman, Board members, and responsible manager (if any).
6. Certificate confirming no bankruptcy rulings have been issued against the company.
7. Declaration by the Company’s Legal Representative committing to comply with Real Estate Financing Law No. 148 of 2001, its Executive Regulations, and Authority decisions, without adding other activities without Authority approval.
8. Declaration by the Company’s Legal Representative committing that brokerage activities are practiced only through the Authority’s Real Estate Brokers’ Register.
9. Receipt of payment for registration services.

Article 15: Registration in the Register of Real Estate Brokers – Legal Entities The Authority shall issue a certificate to approved legal entities, specifying their registration date and number in the Real Estate Brokers’ registers. Registration is renewed every three years, provided there is no violation of legal provisions or registration conditions and the prescribed continuity requirements are met.

Article 16: Renewal of Registration in the Register of Real Estate Brokers – Legal Entities A legal entity whose registration has been valid for three years, or since their last renewal date, must submit a request to the Authority on the prescribed form. The following conditions apply for renewal:

1. The legal entity has not lost any registration conditions specified in Article 13.
2. No disciplinary measures have been imposed by the Authority during the registration period, unless the grounds or duration of the penalty have expired.
3. Attaching to the renewal request the documents referenced in items 2 to 8 of Article 14.
4. Submitting a receipt for payment of renewal service fees.
5. The Managing Director passing the personal interview or examination specified by the Authority for this purpose. (Note: Item 5 was added to Article 16 by Board Decision No. 117 of 2023 dated 25/5/2023.)

6 All Real Estate Brokers Article 17: Rules and Standards for Practicing Real Estate Brokers Every broker in the field of real estate financing must comply with the following rules:

1. Performing entrusted duties with trust and exercising the care of a prudent, specialized professional.
2. Delivering to the financing applicant a copy of the Authority’s form outlining basic financing conditions, and presenting financing terms and risks. The broker must attach an investor declaration confirming receipt and review of this copy before signing the financing agreement.
3. Registering in their books all real estate financing operations they broker, preserving related documents, and providing certified copies to contracting parties or the Authority upon request.
4. Prohibiting the broker from receiving remuneration, commission, or any benefit related to their work except from the financer who authorized them to conclude the real estate financing contract.
5. The broker’s remuneration is determined by agreement with the financer, not to exceed 2.5% of the real estate financing value.
6. For legal entities, the Managing Director or person responsible for actual management must not lose registration or renewal conditions without being replaced within no more than two months from the date the cause is established. The legal entity must practice its activity through at least two other employees registered in the Authority’s Real Estate Brokers’ Register.
7. Working in accordance with the Real Estate Financing Law, its Executive Regulations, and all relevant decisions issued by the Authority.

Article 18: Conditions for Continuation of Registration in the Register of Real Estate Brokers For natural persons, continuation requires maintaining the condition specified in item (4) of Article 9 and not violating commitments in Article 17. For legal entities, continuation requires maintaining the conditions specified in items (1) to (3) of Article 13 and not violating commitments in Article 17.

General Provisions for Real Estate Agents and Brokers Article 19: Striking Off the Authority’s Registers Registration in the Real Estate Agents’ or Real Estate Brokers’ Register, and the license to practice (as applicable), may be struck off by a Board of Directors decision in the following cases:

1. Upon request.
2. In case of death (for natural persons).
3. If one of the registration conditions is lost.
4. If they fail to submit a renewal request within two months at most from the registration expiry date.
5. If it is established that they provided data or information involving fraud or serious error during registration or renewal.
6. If a final bankruptcy or liquidation ruling is issued against them (for legal entities).

Article 20: Re-registration in the Authority’s Registers Persons previously struck off may apply for re-registration under the following conditions:

1. Cessation of the grounds for striking off.
2. Fulfillment of all renewal registration requirements.
3. Payment of registration service fees. Re-registration of persons struck off due to fraud or serious error is not permitted before seven years have passed from the striking-off date.

Article 21: Publication This Decision shall be published on the Authority’s website and in the Waqai’ Misriya (Egyptian Gazette), and shall take effect from the day following its publication date.