For sellersLegal and paperwork
Selling your home on instalments in Egypt: how to protect yourself
Feinh Editorial TeamChecked on · 6 min read
The short answer
You can sell a home in Egypt on instalments and keep ownership until the last payment: Article 430 of the Civil Code allows it even after handover. Take a large down payment, keep the term short, add an express cancellation clause under Article 158, and take crossed cheques, because an uncrossed post-dated cheque can be cashed before its date. You still pay the 2.5% disposal tax on the full price within 60 days of the sale.
Key numbers
- Article 430Of the Civil Code lets you keep ownership until the price is fully paid
- EGP 50,000Maximum fine for a bounced cheque, with or instead of prison (Art. 534)
- 12+ yearsLength of some developer payment plans your buyers compare you with (2026)
- 2.5%Disposal tax on the full contract price, due within 60 days
In this guide (8)
- Why instalments widen your buyer pool in 2026
- How to structure an instalment offer
- What the Civil Code gives you
- Cheques, promissory notes and trust receipts
- When to hand over the keys and sign the final contract
- Tax on an instalment sale
- What your instalment contract must include
- Have a lawyer draft the contract
Why instalments widen your buyer pool in 2026
Your buyers can also choose developer plans of 12 years or more, while resale sellers usually want the full price in cash, which makes resale less competitive (Daily News Egypt, January 2026).
Mortgages don't fill the gap. Only a limited number of developers work with banks on long-term financing (Daily News Egypt), and the number of new mortgage finance customers fell by more than 21% year on year in the first quarter of 2026, according to Financial Regulatory Authority data reported by EnterpriseAM.
Even a short plan changes who can buy from you. On Aqar Exit, a platform for selling off-plan contracts, buyers have on average about EGP 1 million in available cash and can afford about EGP 50,000 a month, according to the platform's own data to 8 October 2026. That buyer can't pay in full, but might manage a large down payment and a short plan.
How to structure an instalment offer
You don't need to copy a developer's 10-year plan. Three settings keep your risk low:
- A large down payment. The more you hold on day one, the less you stand to lose if the buyer stops paying.
- A short term. A few years, not a decade, limits how long you're exposed.
- A higher price for time. Developers build the cost of waiting into their prices: Moataz Shaarawy, CEO of Uptown 6 October, told EnterpriseAM in August 2026 that a 10-year plan can double a unit's price because of interest and hedging costs. Your plan is far shorter, but money paid later is still worth less than cash today.
Example only, not a market rate. Say your cash price is EGP 5,000,000:
| Cash | Instalments (example) | |
|---|---|---|
| Price | EGP 5,000,000 | EGP 5,400,000 |
| Due at signing | EGP 5,000,000 | EGP 2,700,000 (50%) |
| Balance | None | 12 quarterly instalments of EGP 225,000 over 3 years |
Set the cash price first with our guide to pricing your property.
What the Civil Code gives you
Egypt's Civil Code (Law 131 of 1948) protects a seller paid in instalments, but only as well as your contract uses it.
| Article | What it says | What it means for you |
|---|---|---|
| 430 | When payment is deferred, the seller may keep ownership until the full price is paid, even after handover. With instalments, the parties may agree the seller keeps part of what was paid as compensation if the sale is cancelled, but the judge may reduce that amount | Write retention of title, and what you keep on cancellation, into the contract, and keep the amount reasonable |
| 157 | If the buyer doesn't pay, you may, after formal notice, ask a court for payment or cancellation plus damages. The judge may give the buyer more time, or refuse cancellation if the unpaid part is minor | Without a stronger clause, the judge decides |
| 158 | The parties may agree the contract is cancelled automatically, without a court judgment, if one side doesn't perform | Formal notice is still needed unless the contract expressly waives it |
| 160 | On cancellation, both parties go back to where they were | You get the home back and return what was paid, less what the contract lets you keep |
Many homes in Egypt are sold on unregistered contracts. Under the Real Estate Registration Law (114 of 1946), ownership passes only on registration, so in practice retaining title means holding back the final contract, the sale power of attorney or the developer's transfer until the last instalment.
The Commercial Law rule you may read about, that a court can't cancel an instalment sale once the buyer has performed 75% of their obligations (Article 105), applies only when the sale is commercial for at least one party (Article 104), typically a merchant selling goods. It's not written for a private owner selling a home to another individual, but ask your lawyer whether it could apply to your sale.
Cheques, promissory notes and trust receipts
Sellers usually take a guarantee for each instalment. They are not equally strong.
| Paper | Strength | What to know |
|---|---|---|
| Post-dated cheque | Strongest. A bounced cheque is a crime under Article 534 of the Commercial Law (17 of 1999): prison and/or a fine of up to EGP 50,000; prison and a fine of up to EGP 100,000 for a repeat within 5 years of a final conviction | Settling with you at any stage ends the criminal case |
| Promissory note (kambiala) | Civil and commercial remedies only, no criminal penalty | Protest non-payment within 4 business days of the due date (Art. 439). Your claim expires 3 years after the due date (Art. 465) |
| Trust receipt (eisal amana) | Weak | The Court of Cassation has held that breach of trust covers misusing something entrusted, not failing to pay a debt |
Watch the date on cheques. Under Article 503(2) of the Commercial Law, a cheque presented before its stated date must be paid on the day it's presented; only crossed cheques (Article 515) and government cheques are payable just on the stated date. The Supreme Constitutional Court rejected a challenge to this paragraph in a ruling reported on 1 June 2025. Bounced cheques remain a crime in Egypt; the "decriminalisation" stories online concern other countries, such as the UAE and Bahrain.
When to hand over the keys and sign the final contract
Article 430 lets you keep ownership after handover, so the keys can go before the last payment. The question is how much risk you accept.
- Hand over the keys only after the down payment has cleared in your bank account and you hold guarantees for the whole balance.
- Record the handover in a signed document: meter readings, keys and the home's condition.
- Sign the final contract, power of attorney or developer transfer only after the last instalment. On an unregistered home, that's your real protection.
Taking the first deposit is covered in our guide to the arboun and closing a sale.
Tax on an instalment sale
You pay the real estate disposal tax: 2.5% of the full contract price, with no deduction for what you paid. Under Law 151 of 2026, published in the Official Gazette in July 2026, it's due within 60 days of the sale. You'll receive the price over time but owe tax on all of it, so set it aside from the down payment and ask your accountant how the sale date applies to your contract. See taxes and fees when you sell.
What your instalment contract must include
Have a lawyer draft the contract
This guide sets out general legal points, not advice on your sale. Courts apply these articles to the facts and the exact wording of your contract, so have a lawyer draft it and check the cheques or notes before you sign.
When your terms are ready, state them in your listing on Feinh, or start with a free valuation. If you're weighing instalments against a lower cash price, read competing with developer payment plans.
Estimate what you keep from the sale
Enter the expected price and the costs that apply to you.
- Disposal tax
- Agent commission
- Developer transfer fee
- Unpaid instalments taken over
- Other costs
- What you keep
An estimate, not tax advice. Commission is whatever you agree with your agent in writing, and transfer fees vary by developer. Set any cost to 0 if it doesn't apply to you.
Questions people ask
Can I sell my apartment in instalments in Egypt?
Yes. Nothing stops a private seller from agreeing an instalment price with a buyer. Protect yourself with a large down payment, a short term, retention of title until the last instalment, an express cancellation clause and crossed cheques, all in a contract drafted by a lawyer.
Who owns the apartment until the last instalment is paid?
Under Article 430 of the Civil Code, the seller can agree that ownership passes only when the full price is paid, even if the buyer already has the keys. For an unregistered home this works in practice by signing the final contract, power of attorney or developer transfer only after the last instalment.
What happens if the buyer stops paying the instalments?
Without a special clause, you send formal notice and ask a court to cancel the sale under Article 157, and the judge may give the buyer more time. With an express cancellation clause under Article 158, the contract can be cancelled without a judgment, though formal notice is still needed unless the contract waives it.
Are post-dated cheques safe when selling property in Egypt?
They are the strongest guarantee, because a bounced cheque is a crime under Article 534 of the Commercial Law. Ask for crossed cheques: under Article 503(2), an uncrossed cheque presented before its date must be paid when presented, while a crossed cheque is payable only on its stated date.
Is a trust receipt a good guarantee for instalments in Egypt?
It's a weak one. The Court of Cassation has held that breach of trust punishes misusing something entrusted, not failing to perform a contract or pay a debt, so a buyer may be acquitted if the court finds the receipt really secures the price. Crossed cheques or promissory notes written into the contract are safer.
Your next step
Compare local agents and ask up to three for a free valuation.
Sources and review
- Daily News Egypt: Egyptian developers turn to repricing, flexible payment plans to revive sales (checked 24-10-2026)
- EnterpriseAM: Egypt's real estate market splits as state pushes alternative tenure models (FRA mortgage data; Moataz Shaarawy, Uptown 6 October), 19 Aug 2026 (checked 24-10-2026)
- EgyGate News: Aqar Exit reports 35,000 purchase requests for properties valued at EGP 124bn (checked 24-10-2026)
- LawyerEgypt: Egyptian Civil Code, Articles 401 to 800, including Article 430 (Arabic) (checked 24-10-2026)
- LawyerEgypt: rescission of contracts under Articles 157 to 160 of the Civil Code (Arabic) (checked 24-10-2026)
- Andersen Egypt: Real Estate Registration Law No. 114 of 1946 (PDF) (checked 24-10-2026)
- Sada El Balad: instalment sales under the Commercial Law, Article 105 (Arabic) (checked 24-10-2026)
- LawyerEgypt: instalment sale under Commercial Law 17 of 1999, Articles 104 and 105 (Arabic) (checked 24-10-2026)
- Alberonsy: Commercial Law 17 of 1999, Article 88 scope of commercial sale (Arabic) (checked 24-10-2026)
- LawyerEgypt: Commercial Law 17 of 1999, Article 503 on presenting cheques (Arabic) (checked 24-10-2026)
- Egypt Telegraph: Supreme Constitutional Court upholds Article 503 of the Commercial Law (Arabic) (checked 24-10-2026)
- Al Dostor: penalties for bounced cheques under Article 534 (Arabic) (checked 24-10-2026)
- LawyerEgypt: bills of exchange and promissory notes under the Commercial Law (Arabic) (checked 24-10-2026)
- Alberonsy: Court of Cassation on trust receipts and breach of trust (Arabic) (checked 24-10-2026)
- Cairo24: Law 151 of 2026 and the 2.5% real estate disposal tax (Arabic) (checked 24-10-2026)
Written by the Feinh Editorial Team and checked against these sources on 24-10-2026.
This guide is general information, not legal, tax or financial advice. Rules and fees change, so confirm the figures for your case with a lawyer or the relevant authority before you sign or pay. Spotted something out of date? Tell us.
