Egypt launches real estate title insurance to protect property buyers
Egypt’s Financial Regulatory Authority (FRA) announced on Saturday the launch of a specialised real estate title insurance policy, enabling insurance companies to offer coverage that shields buyers from risks related to property ownership and previously undisclosed defects.
The new policy, described by FRA Chairman Mohamed Farid as unprecedented in the Egyptian market, marks a significant regulatory step aimed at enhancing transparency, protecting buyer rights, and boosting confidence in property transactions. It also supports efforts to promote Egyptian real estate to foreign investors.
“For the first time, buyers can obtain insurance coverage against ownership issues or title defects that were unknown before purchase,” Farid said, noting that the measure aligns with global practices to reduce disputes and strengthen trust in the real estate market.
The policy covers financial losses from third-party claims or disputes over ownership due to forgery, fraud, lack of legal capacity, or other factors affecting the validity of the title. It also protects buyers against registration obstacles beyond their control and previously unknown liens or financial obligations.
Exclusions include violations of building, land use, or environmental laws, government expropriation, war, riots, or natural disasters, as well as known mortgages or obligations not disclosed to the insurer. Companies may reject claims or cancel policies if material information is concealed.
Insurers are required to provide legal defence in covered disputes and pay compensation within 30 days of receiving the necessary documents, subject to policy limits. Disputes are referred to arbitration under the Egyptian Centre for Optional Arbitration, and policies can be cancelled under defined conditions.
An annex allows coverage to extend to unregistered properties if ownership is documented through inheritance, court rulings, auctions, or allocation decisions, supported by a certificate confirming no prior transactions. This aims to protect common but unregistered ownership forms in the Egyptian market.
Farid said the move is part of FRA’s strategy to improve non-banking financial services, enable safer investment decisions, and foster confidence between buyers and sellers, while reducing potential legal disputes and encouraging investment in the real estate sector.
The launch of title insurance represents a strategic step in reshaping Egypt’s real estate market, offering new protection for investors and citizens amid growing diversity in property ownership and types.
Attribution: Amwal Al Ghad English