5 cases of withdrawing real estate from the investor and canceling its licenses in Egypt

Wael Salam 14 Jun 2022

As stipulated in Article 67 of Law No. 72 of 2017, promulgating the Investment Law, the administrative authority with jurisdiction has the right to annul the contract of sale, lease, lease-to-own or license to use and withdraw real estate,

This is based on the follow-up reports prepared and submitted by the employees of the administrative authorities with jurisdiction to the competent authority, regarding the follow-up to the implementation stages of the timetable for the establishment of investment project facilities, after the approval of the Authority’s Board of Directors.

Cases of withdrawal of real estate and revocation of licenses

1. Refrain from receiving the property for a period of 90 days from the date of notification of receipt.

2. Failure to start implementing the project within 90 days from the date of receiving the property, free of obstacles and obstructions, without an acceptable excuse, and the continuation of inaction after a written warning for a similar period.

3. Violation of the terms of payment of financial dues and the dates of payment.

4. Changing the purpose of using the real estate for which it was allocated, mortgaging it, or arranging any real right over it without the prior written approval of the administrative authority with jurisdiction, or before the transfer of ownership in accordance with the provisions of this law.

5. Violating the terms of the contract or licensing the usufruct in a fundamental way, at any stage of the project, and not removing the causes of the violation after notifying the investor in writing of that.

The executive regulation clarifies the fundamental violations referred to and the procedures for recovering real estate in the event that it is proven that the investor has refrained or failed to complete the implementation of the project, and in this case it is permissible to re-dispose of the real estate.
.