House committee to approve draft law to regulate real estate development
LEGISLATION WATCH- Housing Committee planning sweeping regulatory changes for real estate industry: The House of Representatives’ Housing Committeewill approve in one month’s time a law to establish a federation for real estate developers and set up a fund to hedge against sector-related risks, committee Secretary Mohamed Ismail told Al Shorouk. The committee is now reviewing the legislation, which would set up a state-sanctioned Egyptian Federation for Real Estate Developers. Al Mal has a draft of what it says is the current text of the proposed bill.
The 84-article bill will introduce new licensing requirements for developers and make the federation the primary licensing body. Developers found operating without a license will be subject to fines of up to EGP 1 mn. The insurance fund, meanwhile, will protect customers against a developer’s failure to deliver units within a contractually specified timeline, among other risks. The fund will be backed by federation membership fees, property and project registration fees, premiums collected from insurance certificates, grants and donations. The House committee is also reviewing a bill that would amend the Real Estate Registry Act, Ismail added.