Do you know that if you buy a property, whether an apartment or land, you will not be the owner thereof unless and until after you register the sale agreement under the provisions of Law 114 of 1946 or Law 9 of 2022, stipulating that "Ownership of a property may be transferred between the contracting parties or third party only by registration"
In this article, we will address the most significant benefits as provided by Law 9 of 2022 on Regulation of Real Estate Registration, supplementing our previous article on the comprehensive and adequate study of property registration under Law 114 of 1946.
First: - Overview of Law 9 of 2022 Regulation of Real Estate Registration
As the said Law 9 of 2022 was issued and published in the Official Gazette on 6.3.2022, to introduce some amendments to the Articles of Law 114 of 1946 Regulation of Real Estate Registration, namely:-
Article 9, Paragraphs 4 and 6;
21, 22, 23 bis, 28, 33, 35, 36 bis, 49, 50;
Two new Articles have also been added; i.e. 10 bis and 22 bis.
Second:- benefits as provided by Law 9 of 2022 on Regulation of Real Estate Registration for all costumers
1. The link between registration and payment of property tax; i.e. 2.5% of the value of the sale price to be notarized or registered, has been canceled.
Accordingly, a person wishing to register his privately owned property (apartment or land) is not required to pay 2.5% of the sale price set out in the sale agreement.
2. The requirement of "Chain Of Title" is no longer a prerequisite for registration or notarization, as was provided by Law 114 of 1946. Hence, the current owner of the property is not required to register all agreements with previous owners.
In other words, the Chain of Title between the current owner and the original owner has been canceled.
3. Law 9 of 2022 amending Article 23 bis of Law 114 of 1946 stipulates that the time limit for completing the registration process of a property, an apartment, or land, is thirty (3) days from the date of submitting the registration application to the concerned department. Anyone with an interest may object to the application for ownership transfer. In the event of the objection, the competent committees of the Real Estate Registry Offices shall review and decide on the objection within seven (7) days. Thus, the total period is thirty-seven (37) days for objection. However, the application for objection shall be accompanied by any supporting documents.
Example: If a registration applicant submits a false sale agreement to transfer the title of a third party to him, the real owner has the right to object to the application for registration and to submit his title deed along with the application for objection
In this regard, it should be noted that Law 9 of 2022
introduced an amendment to the text of Article 36 bis of Law 114 of 1946 regarding any person who submitted to the registration's office a false customary deed for registration of a deed or an incident.
According to Law 114 of 1946, such a person shall be subject to a penalty of imprisonment for not less than one year in addition to a fine.
It is also worth noting that:-
His Excellency the Counsellor/Minister of Justice granted the real estate registry employees judicial police powers so that they are duly entitled to, in the event of submitting a false customary deed or for registration, issue a record of the incident to the competent Public Prosecution to file a criminal action against the applicant who submitted the false deed.
4. Article (10) bis of Law 9 of 2022 stipulates that (Events leading to the acquisition, transfer, change, demise, or determination of a right of the original real property may be registered and after these events under the provisions of this Article)
Adverse Possession under the provisions of Articles 969,968 of the Civil Code; or possession with a deed, even if it is a customary deed for five years starting from the inception of the right if it is in good faith until registration. The aim of the above-mentioned Article
that the registration can now be made with a mere quiet, stable possession and in good faith for five years, under Article 10 bis of Law 9 of 2022.
The provisions following shall be observed:-
a) The provisions of Articles 969 and 968 of the Civil Code regarding Adverse Possession, where Article 968 of the Civil Code relates to the possession of a movable or real estate without the possessor being an owner of the property if possession continues for continuous 15 years.
Article 969:-
Concerning the possession of a property or a right in rem over a property with good faith and for a valid reason, then the limitation period shall be five years.
b) The provisions of the aforementioned paragraph may not apply to the property stipulated in Article 970, which provides that, in all cases, inheritance rights may only be acquired by prescription where possession continues for a period of thirty-three years with the registerer.
c) Furthermore, the provisions of this Paragraph in Article (10) bis of Law 9 of 2022 may not apply to vacant lands owned by the State or by public legal persons such as institutions, as well as charitable endowments.
Important:
In the case of a registration of a deed based on the Adverse Possession for five years starting from the date of the creation of the right, if it was in good faith until the registration, an inspection shall be carried out by the real estate officials who will prepare a record of statements of the applicant for the registration and hear witness testimony regarding the property, including the property guard.
5) Of the most important benefits of Law 9 of 2022 is the amendment to the text of Article 35 of Law 114 of 1946. Where Article 35, after the amendment, stipulates that (Any applicant who has any objection to any item in the acceptance decision, or his application was rejected, shall submit the same deed within 10 days from the date of being notified of the decision of acceptance or rejection. The concerned person may obtain from the secretary of the registration office a temporary reference after paying the prescribed fee and notarizing the deed or ratifying the signatures in case of customary deeds.
After paying a guarantee of 0.5% of the price as stated in the deed, provided that this amount may not exceed EGP 1,000, to be refunded if the temporary reference is maintained to become permanent.
The application shall be accompanied by documents supporting the objection of the concerned person.
In this case:-
The secretary of the registration office shall immediately submit the matter to the Endowment Affairs Judge at the Court of First Instance within which the registration office is located.
After hearing the statements and arguments of the concerned person and the registration office, the Judge shall render a reasoned decision within seven days of referring the matter to him, while keeping the temporary reference as permanent or canceling it after ensuring that the deed registration conditions as required by law have been fulfilled. The decision issued in this regard shall be binding and final.
Third: Of the most important amendments under Law 9 of 2022, which led to the shortening of the period for the registration of customary deeds, are that:
1. According to Law 9 of 2022, the draft deed shall be prepared, and reviewed and the "Valid for Registration" is obtained, after completing the formal and substantive review. That is, the draft deed may now be attached to the application for registration.
However, this comes in conflict with Law 114 of 1946. As the application for registration and the documents attached thereto were reviewed formally and substantively, and the "Valid for Registration" was obtained. Then, the review, both formally and objectively, was carried out again by another officer. Then the "Valid for Registration" is obtained, after completing the draft deed by the applicant for registration, which was a reason for prolonging the time limit for deed registration.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.