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Three laws govern the ownership of land by foreigners:
Law No. 15 of 1963
This law and its amendments (Law No. 104 of 1985) provide that no foreigners, whether natural or legal persons, may acquire agricultural land.
Law No. 143 of 1981
This law and its amendments (Law No. 55 of 1988, Law No. 205 of 1991 and Law No. 96 of 1995) govern the acquisition and ownership of desert land. Certain limits are placed on the number of feddans (one feddan is equal to approximately 1 hectare) that may be owned by individuals, families, cooperatives, partnerships and corporations. Partnerships have the permission to own 10,000 feddans, if the individual shall not own more than 150 feddans. Joint stock companies may own 50,000 feddans.
All partnerships and joint stock companies may own desert land within these limits even if foreign partners or shareholders are involved, if Egyptians own at least 51% of the capital. However, upon insolvency of the company, the land must relapse to Egyptians. Article 1 of Law No. 143 defines desert land as the land two kilometers outside the border of the city. Supplementary, the lease of such land for more than a period of 50 years shall also be considered ownership under the Law No. 143.
Although for the companies formed under the Investment Law No. 8 of 1997 it is not required Egyptian participation, the companies that undertake projects over desert land must be owned in their majority by Egyptians. According to the Law No. 55 of 1988, the President of the Republic may decide to treat Arab nationals as Egyptian nationals for purposes of this law.
Law No. 230 of 1996
This law was issued superseding Law No. 56 of 1988. The new law allows non-Egyptians to own real estate whether build or vacant with the following conditions:
1. The ownership is limited to only two real estate properties throughout Egypt for accommodation purposes of the person and his family (wife and children), in addition to the right to own real estate needed for activities licensed by the Egyptian Government.
2. The area of each real estate should not exceed four thousand square meters.
3. The real estate is not a historical site.
The Prime Minister may approve exceptions from the first and second conditions. The ownership in tourist areas and new communities is subject to conditions established by the Cabinet of Ministers. In addition, non-Egyptians owning vacant real estate in Egypt must build within a period of five years from the date their ownership is effective (the date on which the competent Notary Public Office records the property). Non-Egyptians may only sell their real estate five years after registration of ownership, unless the consent of the Prime Minister is obtained.
Mortgage Law
In 2001 the People's Assembly approved the Law No. 148 of 2001: it allows bank and non-bank mortgage companies to issue mortgages and, for the first time under Egyptian law, provides clear procedures for foreclosure on property of defaulting debtors. In 2002, amendments, which smoothed the progress of mortgage in the banks and lowered the registration fees, have been approved from the Parliament. As well, in 2003 and 2004, real estate registration fees were lowered again. In June 2004, other amendments to the existing Capital market and real estate mortgage allow the issuance of mortgage-backed securities.
Mortgage Law No. 148 of 2001 has provided a regulatory framework for issuance of mortgages by bank and non-bank institutions and regulates the securitization of mortgages with a potential for increasing trading activity in the stock market.
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