The specialist document allows insurance companies to cover buyers against risks related to the validity of property titles or unforeseen legal flaws discovered after a purchase is finalized.
FRA Chairman Mohamed Farid described the move as a
"historic step" that provides an innovative safety net for the
Egyptian market.
"The goal is for the buyer in Egypt to feel
protected from any surprises or claims that may appear later, threatening their
ownership of the property," Farid said in a statement.
Unlike standard home insurance, which covers future
events like fires or theft, title insurance protects against past issues
unknown at the time of sale. This is particularly relevant in Egypt, where
property ownership records can stem from diverse and complex legal sources.
Key features of the new policy include:
Risk Coverage: Protection against fraud, forgery, legal
incapacity of previous owners, or third-party claims on the property.
Legal Support: Insurers are committed to defending the
policyholder in court and covering litigation costs for covered disputes.
Financial Protection: Coverage for prior financial
encumbrances or seizures on the unit that were unknown to the buyer.
Investment Boost: The policy is a key pillar of Egypt’s
"property export" strategy, providing foreign investors with the
legal certainty required to enter the local market.
The FRA noted that while the policy covers registration
failures outside the buyer's control, it excludes losses resulting from
building code violations, environmental laws, or government expropriation.
A special annex to the policy also extends protection to
unregistered properties, provided there is documented proof of ownership
through inheritance, judicial rulings, or official allocations.
The initiative is part of a broader regulatory push to digitize the non-banking financial sector and reduce the high volume of legal disputes traditionally associated with Egyptian real estate transactions.