Decision of the Prime Minister No. 1 of 2001 Issuing the Executive Regulations of the Real Estate Financing Law

Updated Version of the Executive Regulations of the Real Estate Financing Law General Authority for Financial Supervision

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Decision of the Council of Ministers No. 1 of 2001 Issuing the Executive Regulations of the Real Estate Financing Law issued by Law No. 148 of 2001

Article 1 Issuance
The provisions of the Executive Regulations of the Real Estate Financing Law issued by Law No. 148 of 2001 attached to this Decision shall be applied.

Article 2 Definitions
In application of the provisions of the attached Regulations, the term "Law" refers to the Real Estate Financing Law, and "the Authority" refers to the General Authority for Real Estate Financing Affairs.

Article 3 Publication
This Decision shall be published in the Egyptian Gazette and shall be applied from the day following its publication date.

Issued by the Prime Minister on 24 Ramadan 1422 AH (Matching December 9, 2001 AD).

Updated Version of the Executive Regulations of the Real Estate Financing Law General Authority for Financial Supervision

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Executive Regulations of the Real Estate Financing Law First Chapter General Provisions

Article 1
Real estate financing for investment purposes for housing, administrative units, service facilities, and buildings dedicated to commercial activity shall be conducted through the following activities:
(a) Financing the investor's purchase of a property, construction, renovation, or improvement of a property.
(b) Financing the purchase of properties under an Ijarah (lease) system by having the financing entity purchase the property from the investor or others, or constructing it, and then leasing it to the investor under a lease contract ending with ownership of the leased property by the investor at the end of the lease term or during it. (c) Financing the purchase of usufruct rights to properties, through financing the investor's purchase of this right directly from the seller or by having the financing entity purchase the usufruct right to the property upon the investor's request, then selling this right to the investor or leasing the subject of the usufruct right to him under a lease ending with ownership of this right. (d) Financing the construction, improvement, or development of properties that have come to the investor under a usufruct right system, and mortgaging the usufruct right in favor of the financing entity throughout the repayment period of the financing value and its costs. (e) Financing under a Murabaha (cost-plus financing) system by having the financing entity purchase the property at a known price to sell it to the investor in installments at the same price plus a known profit stated in the contract. (f) Financing the purchase of properties under a Musharaka (partnership) system by having the financing entity purchase or construct the property in partnership with the investor, with the financing entity committing to sell its share to the investor, or lease it to him under a lease ending with ownership. The financing entity may also sell its share or lease it under a lease ending with ownership to non-investors, upon the investor's request.

The activity of re-financing real estate shall be conducted by re-financing entities that engage in real estate financing activities, using one of the formats in which these entities conduct that activity.
*Amended by Decision of the Prime Minister No. 2 of 2015

Article 1 Bis
Re-financing of real estate with collateral or purchase of real estate portfolios from financing entities shall be conducted, provided that the guarantee agreements are pledged as a possessory mortgage in favor of the Real Estate Re-financing Company as security for the amount of re-financing granted until its value is paid off, and it has the right to issue bonds secured by its assets or securitization notes against the financial rights transferred to it. *Added by Decision of the Prime Minister No. 2 of 2015

Article 2
Real estate financing shall be secured by a lien on the property, or by mortgaging it officially.
In the following cases, the financier may accept one of the guarantees listed next to each to facilitate real estate financing:
-1 If the property subject to financing is not registered in the name of the seller in the case of purchase, or in the name of the investor in the case of construction, renovation, or improvement, the financier may accept a guarantee for the financing consisting of a mortgage of real estate assets owned by the investor or others, or a personal guarantee from a non-investor, or securities listed on the stock exchange with a value not less than the total value of the due installments or the value of the financing and its costs, or accepting the investor's deduction of the financing installment value from his salary or income. In these cases, the financier may stipulate that the investor register the property subject to financing in his name, or record a lien in his name, or mortgage it officially in favor of the financier within an agreed period. -2 If the property subject to financing is for the purpose of constructing, renovating, or improving a property on land allocated to the investor by the State or a public legal entity, or for financing the purchase of a unit allocated to the investor by the State or a public legal entity, the financier may, as security for the financing and its costs, accept a mortgage of the buildings in his favor or accept the temporary assignment from the investor of the allocation throughout the financing period, after obtaining the approval of the entity that allocated the land or unit to perform this assignment. -3 If the financing is for the investor's purchase of the usufruct right to the property directly from the seller, or for constructing, renovating, or improving properties that have come to the investor under a usufruct right system, the financing entity may stipulate a mortgage of this right in its favor officially. In all cases, the financier is obligated to record the document creating this right.

In all cases, the financier may accept whatever other guarantees it deems appropriate as security for financing in any of the real estate financing activities and according to what is agreed upon in the contract, observing the controls set by the Authority regarding these guarantees.

Updated Version of the Executive Regulations of the Real Estate Financing Law General Authority for Financial Supervision

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*Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 2 Bis
Real estate financing shall be conducted pursuant to an agreement between the financing parties on the forms approved by the Authority, which must include at least the following data:
(a) A description of the property that eliminates ambiguity and its price or the consideration for the usufruct right to it.
(b) The amount of the lump sum to be paid from the property price or the advance rent.
(c) The number and value of the installments of the remaining price or rental value or consideration for the usufruct right and the conditions for fulfilling them, which must be fixed or determinable in advance using a fixed equation linked to an official indicator determined by the Authority to calculate the change in financing cost, increase or decrease, until they are fully satisfied. (d) The discounted value to be fulfilled in cases of early repayment based on the date of fulfillment from the financing installments years. (e) Acceptance by the seller to assign his rights in the installments of the price or rental value or consideration for the usufruct right and the associated guarantees to the financier under the agreed conditions. (f) Acceptance by the investor of the financier's right to assign his rights as the investor party to the Company or one of the entities licensed to conduct the securitization activity. (g) Commitment by the investor, in case of financing his purchase, construction, renovation, or improvement of the property subject to financing, to mortgage it or record a lien on the price whose installments are assigned to the financier, as security for fulfilling them.

The Board of Directors of the Authority shall set the conditions and determine the data that must be included in financing agreements according to the nature of each agreement, observing the following:
-1 In the case of partnership contracts, the contract must include conditions for managing the partnership and distributing its returns, and specify the share of each party and the conditions for the investor or others to own the financier's share upon the investor's wish. -2 In the case of lease contracts, the contract must include the rental value, due dates, sale system and its deadline, and its price, which must be fixed or determinable, noting that the price determination should consider the rent amounts paid by the lessee. -3 In the case of Murabaha contracts, the contract must include the purchase price of the property plus a known profit, the number and value of installments, and the repayment periodicity. -4 In the case of usufruct right financing contracts, the contract must include the value and duration of the usufruct, the value of installments, and how to deal with buildings and constructions financed by the financier for the usufruct right, with compliance to recording the usufruct right and the real estate mortgage on it. *Added by Decision of the Prime Minister No. 2 of 2015

Article 2 Bis 1
Re-financing of real estate shall be conducted pursuant to an agreement between the two financing parties on the forms approved by the Authority, which must include at least the following data:

• Contract duration and total value of the re-financing amount.
• Guarantees provided to obtain the re-financing amount.
• Conditions of use and repayment.
• Conditions for assignment of the contract and transfer.
  The Board of Directors of the Authority shall determine other data that the re-financing agreement must include.
  *Added by Decision of the Prime Minister No. 2 of 2015

Article 3
The conduct of real estate financing activities and fields shall be in accordance with the rules and standards determined by the Board of Directors of the Authority according to the nature of each activity. The Board of Directors of the Authority shall also set the rules organizing cases of termination of the lease, partnership, or usufruct right contract before the period specified in the contract due to the death, disability, or refusal of the investor to pay the due installments, observing the market value of the property and what the investor has paid for owning the property or usufruct right to it. *Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 4
Entities wishing to establish projects for building economic housing sold to low-income individuals as mentioned in Article (6), under the real estate financing system and with the benefits decided by the Law in this regard, shall submit a request to the Guarantee and Support Fund for Real Estate Financing Activity accompanied by comprehensive studies on the project including the number of units, their areas, the estimated value of their prices, and other elements related to the project.

The Fund shall conclude an agreement with the entity wishing to establish the project and with those who will finance it, covering all provisions organizing the establishment of the project, the method of selling its residential units and financing them, and determining the percentage of support provided by the Fund.

Article 4 Bis
The value of the property shall be estimated when granting financing according to the standards issued by the Board of Directors of the Authority, which must include in particular the following:
-1 Description of the property, its location, boundaries, and area.
-2 Date of construction of the property, condition of internal facilities, and remaining economic life.
-3 Method of valuation applied, justification for its use, and the value of the property or market rental value according to it at the time of valuation, considering repairs and renovations made to the property if any.
-4 The minimum content of the valuation report.
*Amended by Decision of the Prime Minister No. 2 of 2015 *Added by Decision of the Prime Minister No. 465 of 2005

Article 5
The State - represented by the entities having authority over state lands - is committed to delivering lands allocated for building economic housing for low-income individuals under the real estate financing system to the Fund, and bearing the actual cost of providing public utilities for them or a part of this cost, or other forms of support as presented by the Ministers of Finance and Housing, Utilities, and Urban Communities. *Amended by Decision of the Prime Minister No. 2 of 2015

Article 6
The term "investor from low-income individuals" referred to in Article (5) of the Law refers to those who meet the following criteria:
(a) He or his spouse or minor children do not own a residential unit.
(b) He or his spouse has not previously benefited from support from the Guarantee and Support Fund for Real Estate Financing Activity or one of the public entities providing support to obtain a residential unit.
(c) His annual income and that of his family does not exceed the limit issued by a decision of the Board of Directors of the Guarantee and Support Fund for Real Estate Financing Activity, considering changes in unit prices, income levels, and inflation rates.
Priority in providing support to obtain economic housing shall be given to the investor with the lowest income who has not previously received cash support and who does not own a residential unit.
*Amended by Decision of the Prime Minister No. 1 of 2015 *Amended by Decision of the Prime Minister No. 1864 of 2008 *Amended by Decision of the Prime Minister No. 465 of 2005

Second Chapter
Disposal of the Collateral Property, Leasing it, and Early Repayment

Article 7
The investor wishing to dispose of the collateral property, assign the lease or usufruct right, arrange a real right on it, lease it, or enable others to exclusively occupy it must obtain the written approval of the financier based on a written request addressed to him before the scheduled date of disposal, lease, or occupation by a period of not less than thirty days, attaching to the request documents proving the identity of the transferee, his income, or the guarantees mentioned in Article (2) of these Regulations. *Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Updated Version of the Executive Regulations of the Real Estate Financing Law General Authority for Financial Supervision

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Article 8
The request for approval of disposal, lease, or assignment of usufruct right or arrangement of a real right must be accompanied by a written declaration from the transferee assuming the obligations arising from the financing agreement in place of the investor. The financier may stipulate that the investor provide a declaration of joint liability with the transferee in fulfilling these obligations. *Amended by Decision of the Prime Minister No. 2 of 2015

Article 9
The financier may stipulate, for approval of the investor leasing the property or others occupying it, the submission of a written declaration assigning his right in the property rent or occupation consideration to the financier and notifying the lessee or occupier of the assignment, to settle the financier's dues from the investor according to the real estate financing agreement.

Article 10
The financier shall not reject the request mentioned in Article (7) except for serious reasons exposing his interests and rights to danger, and the financier must notify the applicant of the reasons for rejection via a registered letter with acknowledgment of receipt within thirty days from receiving the request, otherwise he shall be deemed to have approved it.

Article 11
If the investor wishes to early repay all or part of the installments of the price, financing, or rental value, or expresses the desire to own during the lease contract period, he must notify the financier no less than one month before the scheduled early repayment date. In this case, the due installments shall be reduced according to the early repayment schedule attached to the financing agreement. *Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 12
The request for registration of the real estate guarantee by the financier or investor, in application of the Law's provisions, shall be submitted to the Real Estate Registration Office within whose jurisdiction the property is located, including the following data:
(a) Names and data of both the financier and the investor.
(b) Value of the installments and guaranteed rights.
(c) Scheduled date for the completion of repayment of the price or financing installments.
The financing real estate agreement and the property ownership document in the investor's name or the financing guarantee document in the financier's name must be attached to the aforementioned request.

Third Chapter
Registration of Real Estate Guarantee and Assignment of Rights Arising from the Financing Agreement

Article 13
The competent Real Estate Registration Office shall verify the correctness of the property boundaries and specifications mentioned in the registration request and the attached ownership document. For this purpose, it may instruct the applicant to complete the necessary documents within a period of not less than three days. The decision on the request or the instruction to complete documents shall be issued within one week from the date of submission. The registration request shall not be rejected except for failure to complete the necessary documents for its execution. In all cases, the applicant must be notified of the acceptance of the request, the need to complete documents, or the rejection of the request with reasons via a registered letter with acknowledgment of receipt according to the Law's provisions.

Article 14
Without prejudice to the provisions organizing the securitization activity contained in Capital Market Law No. 95 of 1992 and its executive regulations and decisions issued in implementation thereof, the assignment agreement arising from the real estate financing agreement to the Real Estate Re-financing Company or the entity licensed to conduct the securitization activity, which is prepared by the Authority, must include at least the following data:
(a) The financier's acceptance to assign his rights arising from the real estate financing agreement to the assignee.
(b) Statement of the consideration the assignee committed to in exchange for the assignment and the conditions for fulfilling this consideration.
(c) Detailed statement of the assigned rights, including the installments or rental value for each financing operation, the collateral property for it, guarantee conditions, and data of the debtor and any other guarantees (securitization portfolio / real estate re-financing portfolio). (d) The financier's commitment to collecting the assigned installments or rental value as an agent for the assignee in exchange for a collection commission determined by the agreement. *Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 15
Repealed
*Repealed by Decision of the Prime Minister No. 465 of 2005 Text before repeal: Without prejudice to the financier's guarantee for fulfilling rights arising from the papers, it may be agreed to guarantee the fulfillment of rights arising from financial instruments issued by the entity conducting the securitization activity, provided that its credit rating is not less than the level determined by the General Authority for the Capital Market, and the guarantee covers all due installments and is not subject to any condition.

Article 16
When assigning his rights arising from real estate financing agreements, the financier must commit to the following:
(a) Disclose to the assignee the names of the investor debtors of the assigned rights and the guarantees provided by them, and what they have fulfilled in terms of installments, rental values, or usufruct consideration, and repayment dates and cases of refusal to pay, all without needing to obtain the investors' consent for this disclosure. (b) Notify the debtor of the mortgage via a registered letter with acknowledgment of receipt unless the financing agreement specifies another means, and commit to proving the mortgage before the competent authority. (c) Not deal with the assigned rights or any associated guarantees again. (d) Record the contract date in a register kept by the Authority or one of the entities determined by its Board of Directors. The contracting parties may deliver the documents of the mortgaged rights to another entity agreed upon by the contracting parties and approved by the Authority. It may also be agreed that the assignor retains possession of the mortgaged rights documents as a precaution, committing to deliver them to the assignee upon request. *Amended by Decision of the Prime Minister No. 2 of 2015

Fourth Chapter
Execution on the Collateral Property or Other Real Estate Financing Guarantees

Article 17
The financier shall not begin execution procedures on the collateral property except after notifying the investor via a bailiff to pay or provide sufficient guarantee according to the circumstances. The notification must include:
(a) Warning the debtor to pay or provide sufficient guarantee.
(b) Statement of the installments to be paid or the guarantee accepted by the financier.
(c) Determination of the period within which the investor must pay or provide the guarantee, which shall not be less than sixty days from the date of notification.
(d) Warning the investor that expiration of the period specified in the notification without response shall result in the maturity of the remaining installments according to the real estate financing agreement.
(e) Designation of an elected domicile for the financier.

Article 18
Execution begins by notifying the investor, transferee, holder of the real right, and lessee of the financing agreement after placing the executive formula on it, with instructing the investor to pay. The notification must include:
(a) Statement of the entity and date of placing the executive formula on the financing agreement.
(b) Instruction to pay the full remaining amounts according to the financing agreement within a period of not less than thirty days from the date of instructing payment.
(c) Description of the property with its location, area, and boundaries.

Updated Version of the Executive Regulations of the Real Estate Financing Law General Authority for Financial Supervision

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Article 19
The financier shall notify the Real Estate Registration Office within whose jurisdiction the property subject to execution in the financing agreement is located after placing the executive formula on it and instructing the debtor to pay, to endorse this on the margin of the real estate guarantee registration within a period not exceeding one week from the date of notification. The financier must also notify all creditors whose rights are registered on the property and its possessor after placing the executive formula on it and instructing payment, otherwise the instruction shall not be enforceable against them.

Article 20
The endorsement of the executive document in the Real Estate Registration Office serves as a notice of expropriation, and it results in considering the property seized from the date of endorsement.

Article 21
The execution judge shall appoint a real estate agent in his decision issuing the commencement of property sale procedures by public auction from among the agents registered in the register kept by the Authority for this purpose according to the provisions of Chapter Six of these Regulations, provided that he has no direct or indirect interest in the sale or with the financier or investor. The execution judge shall order in his decision issuing the commencement of sale procedures that the applicant place an amount determined by him in the treasury of the competent court for the account of execution expenses.

Article 22
The execution judge shall appoint two valuation experts mentioned in Article (4) of the Law - individually - to determine the base price of the property, observing the valuation standards issued by the Board of Directors of the Authority.
The real estate agent shall determine the bid security to be not less than one percent and not exceed five percent of the base price of the property, with a minimum of ten thousand pounds.
In all cases, the valuation expert is entitled to receive his fees regardless of whether execution on the property takes place or not.
*Amended by Decision of the Prime Minister No. 2 of 2015

Article 23
The real estate agent shall prepare a list of conditions for selling the property by public auction within fifteen days from the date of endorsing the executive document, which must include the following:
(a) Designation of the property subject to execution, its area, location, boundaries, and other data useful in describing it.
(b) Entity and date of placing the executive formula on the real estate financing agreement.
(c) Date and entity of endorsing the executive document at the Real Estate Registration Office.
(d) Date, time, and place of the sale.
(e) Sale conditions and the base price of the property.
(f) Division of the property into lots if applicable, with the base price for each lot mentioned.
(g) Amount of bid security, which shall not be less than one percent and not exceed five percent of the base price of the property.

Article 24
The real estate agent must, before starting the bidding procedures, verify the notification of interested parties in the periods specified in Article (19) of the Law regarding the list of sale conditions and determining the increments in offers and notifying attendees of them.

Article 25
The agent shall deposit the proceeds of the sale in the court treasury within three days from the date of the judgment of the sale.

Article 26
The real estate agent's fees shall be determined by a decision of the execution judge according to the effort exerted by the agent to complete the sale procedures and the time these procedures took, not exceeding three percent of the value at which the auction fell, with a minimum of three thousand pounds. The execution judge also determines the agent's fee in case the debtor pays during the procedures and before stopping the sale, with a minimum of one thousand five hundred pounds. *Amended by Decision of the Prime Minister No. 2 of 2015

Article 26 Bis
In cases where the financier accepts guarantees for financing other than recording a lien on the property or officially mortgaging the collateral property, the financier, in case of the investor's breach of his obligations according to the financing agreement or failure to pay the agreed installments on their due dates according to the financing agreement, and after notifying him according to the periods and procedures specified in Article (12) of the Law, may request the competent judge to order execution on the provided guarantees according to what the financing agreement includes. When executing on the provided guarantees to recover the remaining amounts of the financing value, the discounted value for early repayment attached to the financing agreement must be observed. In case the real estate guarantee mentioned in the financing agreement is not registered in favor of the financier, and in cases of temporary assignment of allocation in favor of the financier according to Article (2) of these Regulations, as well as in cases of Ijarah, Musharaka, and Murabaha, if the financier fails to pay the amounts due from the investor and thirty days have passed from their due date, the financier may notify the investor to pay within sixty days, and the notification must include the data specified in Article (17) of these Regulations. If the investor fails to pay the due amounts within the period mentioned in the previous paragraph, the financier may request the execution judge in whose jurisdiction the collateral property is located to order execution on that property and appoint a real estate agent from among the agents registered with the Authority to conduct the property sale procedures under the direct supervision of the execution judge, following the following procedures to recover his dues:
(a) Determining the market value of the property by two experts from the real estate valuation experts registered with the Authority.
(b) Selling the property at the highest available price, observing the valuations prepared by the real estate valuation experts, and the financier obtaining his dues plus late fees and all expenses and costs incurred until the date of sale, and returning the remaining amount of the sale proceeds in full to the investor. *Amended by Decision of the Prime Minister No. 32 of 2024 *Added by Decision of the Prime Minister No. 2 of 2015

Fifth Chapter
Real Estate Financing Companies

Article 27
The company licensed to conduct the real estate financing activity must take the form of an Egyptian joint-stock company, and its issued and paid-up capital must not be less than one hundred million Egyptian pounds or its equivalent in foreign currencies at the exchange rate announced by the Central Bank of Egypt on the date of the company's establishment. The paid-up capital of re-financing companies must not be less than two hundred and fifty million pounds, and not less than half of it must be paid in cash at establishment. The company must commit, within three years at most from the date of its registration in the Commercial Register, to complete its paid-up capital to become at least two hundred and fifty million pounds. *Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005 *Amended by Decision of the Prime Minister No. 32 of 2024

Article 28
The license request shall be submitted on the form prepared by the Authority, accompanied by the following:
(a) The preliminary contract of the company and its articles of association, provided that the company's purpose is to conduct one or more of the real estate financing activities mentioned in Article (1) of the Law. The Authority may, according to the controls it sets, license the company to conduct other non-banking financial activities related to its activity, except for re-financing real estate companies, whose purpose must be limited to conducting the real estate re-financing activity. (b) The company's commercial register. (c) The scientific qualifications and practical experience of the Chairman and Board of Directors members and Managers. (d) A certificate stating that no bankruptcy or insolvency judgment has been issued against any of the company's founders, Chairman, Board of Directors members, and Managers, unless his reputation has been restored. (e) Declarations from the company's founders, Chairman, Board of Directors members, and Managers that no judgment has been issued against any of them for a felony or a misdemeanor in a crime involving honor or trust, unless his reputation has been restored. (f) A certificate from auditors registered with the Authority accepting to audit the company's accounts. (g) A statement of shares representing at least (10%) of any other financial institutions operating in Egypt owned by the founders or shareholders whose ownership percentage exceeds (10%) of the company's shares. (h) The receipt proving payment of the license fee.

The Board of Directors of the Authority shall issue a decision on the requirements and other documents that must be submitted to obtain a license to conduct the activity.
*Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 29
The license fee for the company shall be ten thousand pounds.
*Amended by Decision of the Prime Minister No. 2 of 2015 *Amended by Decision of the Prime Minister No. 465 of 2005

Article 30
The following conditions must be met to grant the license:
(a) Fulfilling the requirements mentioned in Articles (27) and (28) of these Regulations.
(b) The percentage of participation of legal persons and financial institutions in re-financing companies must not be less than (75%), and the percentage of participation of financial institutions must not be less than (50%). Financial institutions are defined as companies and entities subject to the supervision of the Central Bank of Egypt or the Authority, or those subject to the supervision of external bodies or entities exercising similar authority to that of the Central Bank of Egypt or the Authority. (c) The Chairman and the majority of the Board of Directors members must have practical experience

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