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Wednesday, 10 July 2019

Cabinet issues executive regulations for settling building violations

LEGISLATION WATCH- Cabinet issues executive regs for settling building code violations: Prime Minister Moustafa Madbouly has issued the executive regulations for a temporary law to settle building code violations, Housing Minister Assem El Gazzar said, according to Al Mal. The regulations allow fines of 5-100% of the land plot’s value to be imposed in cases of building code violations. The fine breakdown is as follows:

  • A 5% fine is levied if the building does not follow the architectural plan;
  • A 20% fine is charged if it does not conform to the construction plan;
  • A 25% fine will be applied if neither the construction nor the architectural plans are followed but the building abides by regulations limiting plot size and the number of stories;
  • A 50% fine will be levied if the property follows the building code but has been built without a permit;
  • A 100% fine is charged if the property violates the building code, is constructed without a permit and is built in an unsuitable area.

Fines can be paid in installments: Fees for requesting settlement are capped at EGP 5k, and settlement fines can be paid over quarterly installments over a maximum of three years after paying a minimum of 25% of the fine up front. A committee comprised of accredited real estate experts from the Financial Regulatory Authority’s registry and a Finance Ministry representative will value land plots.

Background: The House of Representatives had approved earlier this year the temporary bill, which permits authorities to negotiate settlements on structures that meet structural integrity requirements and that are not built on state-owned or agricultural land. The law will sunset after three months.

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