Buying an off-plan unit from another buyer in Egypt (tanazul): discounts, fees and risks

What buying a tanazul means

When you buy an off-plan unit from another buyer, you aren't buying a finished home. You're taking over their contract with the developer, part-paid, with instalments still to come. This is called an assignment, or tanazul.

The developer stays at the centre of the deal. Its contract decides whether the unit can be assigned, on what conditions and for what fee, and it has to record you as the new buyer. Until it does, the contract isn't yours, whatever you've paid the seller.

Why more contracts are for sale in 2026

Sales have slowed. The ten largest developers sold about 15% fewer units in the first quarter of 2026 than a year earlier, according to The Board Consulting, and JLL said purchasing-power pressures had slowed sales that quarter. Developers compete with longer plans, lower down payments and fast-payment discounts, which makes it harder for earlier buyers to sell.

Aqar Exit, a platform for selling instalment contracts, published data from its first 28 days (8 August to 5 September 2026). These are the company's own figures, not an independent survey:

• For roughly half of sellers, the amount already paid was about 26.8% of the unit's value.
• 88% of contracts with known age were under two years old, so most units are still years from handover.
• 20.7% of sellers who reported their payment status had overdue instalments.

The platform's CEO, Mahmoud Ammar, said in September 2026 that in many cases sellers accept 25% to 35% below current market prices for comparable units. That discount is measured against today's price, which is often still above what the seller originally agreed to pay.

How the price is built

You pay two parties. You pay the seller for what they've already paid the developer, plus a premium or minus a discount, and then you take over the remaining instalments. Confirm the exact schedule you inherit with the developer, in writing.

So the number that matters is your total cost: what you pay the seller, plus what you still owe the developer, plus fees. Compare it with what the developer would charge you today for a similar unit.

Two cautions. The developer's price is often quoted on a long plan, so compare with its cash price too. And an older contract may have fewer, larger instalments left than a new plan. Our guide to developer payment plans shows how to compare them.

The developer's approval and the transfer fee

Ask the developer, in writing, whether the unit can be transferred now, on what conditions and for what fee. Some developers block transfers during certain periods.

Sources disagree on the fee:

• A September 2026 study of more than 40 developer contracts by an Egyptian law firm found 1% to 5% of the unit value.
• Lawyer Reda El-Mansheawy told Al Borsa that 5% to 10% is typical and some developers charge 15%. Aqar Exit's CEO cited 5% to 15%.
• Mohamed El-Bostany, chairman of the Association of Real Estate Developers (arD), called a 15% fee illegal and said he had not heard of any company charging it. He said old 3% to 5% fees were cancelled as illegal, that some developers charge no more than EGP 30,000 to 40,000 a unit, and that a government fee of about 1% also applies.

Article 15 of the Consumer Protection Law (Law 181 of 2018) says any contract clause letting the seller, or its successor, take a percentage, fee or commission when the buyer resells the unit is void. Lawyers quoted by Al Borsa argue this covers developers' transfer fees, and one said Article 224 of the Civil Code may let a judge reduce an agreed penalty that is grossly excessive. Developers still write transfer fees into contracts, and we found no settled court ruling applying Article 15 to them. Until that is settled, expect the fee in the contract, agree in writing whether you or the seller pays it, and ask your lawyer.

The risks to check

• Overdue instalments. Arrears can come with the contract. Get a statement of account from the developer, not the seller, showing nothing overdue on the transfer day.
• Forfeiture clauses. You inherit the contract's terms. A 2026 study of more than 40 contracts found some let the developer keep up to 30% of the price if a buyer cancels, while some cap delay compensation at 2%.
• A unit sold twice. Selling the same unregistered unit to two buyers is a known fraud. Only the developer's records show who holds the contract.
• The maintenance deposit. Some contracts set it as high as 10% of the price. Check whether it's paid and agree who covers it.
• Broker and platform fees. Commission is set by written contract. Aqar Exit says it charges buyers 1.25% to 1.5%. Brokers must be registered with GOEIC, and commission above EGP 10,000 must be paid non-cash.
• State-allocated units. For New Urban Communities Authority units, the transfer happens at the city authority after handover, and the authority treats a sale not formally transferred through it, such as one made by power of attorney, as a breach that can cost the allocation. Never accept a power of attorney instead of a formal transfer.

Step by step

1. Read the original contract: the assignment clause, fee, delivery date and cancellation terms.
2. Check the project. Units can't legally be sold before a building permit is issued, so ask for the phase's permit. See our legal checks before you buy.
3. Get the developer's conditions, fee and statement in writing.
4. Work out your total cost and compare it with similar units in new projects and resale homes on Feinh.
5. Agree the deal in writing, including who pays the fee, with a clearly worded deposit. See the deposit and closing.
6. Complete the transfer at the developer's office together, and get written confirmation that the contract and payment schedule are in your name.
7. Pay the seller by bank transfer into their own account, against that confirmation. Check anyone you deal with on Feinh Verify.

Selling instead? Read selling an off-plan unit before delivery.

Your document checklist

• The original developer contract, with all annexes
• Every earlier assignment, approved by the developer, if the seller isn't the first buyer
• Receipts for every payment the seller has made
• A recent developer statement of account showing no arrears
• The developer's written approval of the transfer, with the fee
• The remaining payment schedule, confirmed by the developer
• The seller's national ID, matching the contract
• The building permit for the phase
• Proof of the maintenance deposit, if paid
• The broker's registration card and written agreement, if you use one
• Your lawyer's review before you sign or pay
• The developer's confirmation that the contract is in your name

Every listing on Feinh is checked before it goes live, but that isn't a legal review. Use this list with your lawyer.