Essential Clauses in a Real Estate Sale Contract in Egypt

The sale contract is the document that decides what happens when something goes wrong. In Egypt most property sales start with a private sale contract, often called the preliminary contract. It is binding between the buyer and the seller, but it does not by itself make you the registered owner. That is why its wording matters so much: if the developer is late, if the seller disappears, or if you want to register later, the contract is what you and your lawyer will rely on.

This article explains the clauses every safe contract in Hurghada should contain, with the mistakes we see most often.

1. The parties

The contract must name the seller exactly as he appears on his own ownership documents, with his national ID or passport number. If a company sells, check the company's commercial register and that the person signing is authorised to sign for it. If someone signs on behalf of the owner, attach a copy of the power of attorney and check that it actually allows selling.

2. An exact description of the unit

"An apartment in building 5" is not enough. The contract should state:

• The project, the building number, the floor and the unit number
• The net area and, if relevant, the share of common areas
• The view, the garden or roof area if they are part of the price
• The finishing level: core and shell, semi-finished, finished or furnished
• A plan of the unit attached to the contract

If the area turns out smaller than written, the contract should say whether the price is reduced.

3. The ownership history

A good contract refers to the documents that prove the seller's right: the previous contracts back to the original land allocation, the building licence number and any registration already made. The seller should guarantee that the unit is free from debts, mortgages and disputes, and that he will compensate you if a third party later claims it.

4. Price, currency and payment schedule

Write the total price in numbers and in words, and the currency. For instalment plans, list every instalment with its date and amount. State how payments are made (bank transfer is best) and that every payment is acknowledged by a receipt. If the price is in foreign currency, say so clearly to avoid disputes about exchange rates.

5. Delivery date and penalties for delay

For off-plan units this is the most important clause. The contract should state a fixed delivery date, a short grace period at most, and a clear penalty for every month of delay. Without a penalty clause, a delay of two or three years costs the developer nothing.

6. Handover condition

Describe what "ready" means: finishing specification, working utilities, completed common areas, and an inspection before the keys are handed over. Defects found at handover should be fixed within a stated period.

7. Maintenance and service charges

Compounds usually charge a maintenance deposit at handover and yearly service fees. The contract should state the amount or how it is calculated, what it covers and who manages it. Unclear service charges are one of the most common complaints of foreign owners.

8. Registration and fees

The contract should state which registration route is planned, who prepares the documents and who pays which fees and taxes. The seller should commit to sign every document needed for registration, now or later. This clause is what allows a court to confirm your contract if the seller later refuses to cooperate.

9. Cancellation

What happens if you cannot continue paying? What happens if the developer never delivers? A fair contract states how much is refunded in each case and within what period. Be careful with clauses that let the developer keep all payments if you miss one instalment.

10. Resale and assignment

If you may want to sell before delivery, check whether the contract allows assignment to a new buyer and whether the developer charges a fee for it.

11. Disputes

The contract should say which law applies (Egyptian law), which court or arbitration centre decides disputes, and which language version prevails if there are translations.

12. Language and signatures

Many contracts are written only in Arabic. Never sign a contract you cannot read. Ask for a full translation, and make sure every page is signed and that you keep an original copy.

The most common mistakes

• No penalty for late delivery
• A unit description that does not match the plan
• Payments made in cash without receipts
• No clause obliging the seller to sign for registration
• Signing the developer's standard contract without negotiation

Can the developer's standard contract be changed?

Often yes. Developers in Hurghada do accept changes to delivery dates, penalties, payment schedules and cancellation terms, especially for buyers who pay larger amounts upfront. A lawyer knows which changes are realistic to ask for.

Frequently asked questions

Is a private sale contract valid in Egypt? Yes, it is binding between the parties. To protect yourself against third parties, it should be registered or confirmed by a court judgment.

What is a "validity of signature" case? It is a court procedure that confirms the signature on your contract. It is often used as a first step when full registration is not yet possible.

How long does a contract review take? Our fixed-price review is delivered within two to four working days, with a written report in English or Russian.

Next step

Send us the draft contract before you sign. We will mark every risky clause and suggest the wording that protects you.

*This article is general information, not legal advice for your case. Rules change, so always confirm the current requirements for your specific unit.*