The Financial Regulatory Authority (FRA), chaired by Mohamed Farid, has announced the issuance of a model insurance policy for Real Estate Title Insurance, enabling insurance companies to provide coverage to property buyers against risks related to the validity of ownership and the emergence of title defects that were unknown at the time of purchase. The move marks a qualitative regulatory shift in the Egyptian real estate market and reflects the Authority's strategy to enhance transparency, protect the rights of market participants and strengthen confidence in property transactions. It also supports efforts to export Egyptian real estate by offering greater ownership stability for foreign investors. Farid said the launch and activation of the Real Estate Title Insurance policy represents a historic step, introducing innovative and unprecedented insurance coverage that protects participants in the property market from risks arising from defects in title proof discovered after the completion of purchase, as specified in the policy. He explained that, for the first time, buyers will benefit from insurance coverage against a defined range of risks, including those stemming from defects in title documentation that were unknown prior to acquisition. A real estate title deed, he noted, is the legal document proving ownership of a specific property by an individual or legal entity, defining its boundaries as well as the rights and obligations of the owner. Title insurance, Farid added, is primarily used in property transactions—such as home purchases—to protect both the buyer and the financing bank from financial losses resulting from problems or defects in ownership, in accordance with the terms set out in the Real Estate Title Insurance policy. He noted that this type of insurance is a well-established mechanism in global markets and is now being introduced in Egypt to enhance confidence, reduce ownership-related disputes and improve market efficiency. Farid said the policy forms part of the FRA's broader vision to raise the efficiency and quality of non-banking financial services, enabling citizens and investors to make safer and more informed decisions. "Our aim is for buyers in Egypt to feel protected against any future surprises or claims that may threaten their property ownership," he said. He highlighted the distinction between title insurance and conventional home insurance, noting that while home insurance covers future events such as fire or theft, title insurance protects against problems that occurred in the past but were unknown at the time of purchase. The FRA Chairperson said the policy comes at a time when Egypt's real estate market is witnessing increasing diversity in ownership sources and property types, heightening the need for advanced insurance mechanisms that support sector stability and protect ownership rights. According to the policy, coverage includes compensation for losses arising from third-party claims or disputes challenging the validity of ownership, whether due to forgery, fraud, lack of legal capacity or other factors affecting the strength of the title deed. Coverage also extends to cases where property registration becomes impossible for reasons beyond the insured's control, as well as expenses resulting from the discovery of prior liens or financial obligations on the property that were unknown to the insured. However, coverage does not extend to losses resulting from violations of building, land-use or environmental regulations, nor does it include government actions related to expropriation or seizure. The policy also excludes losses arising from war, riots and natural disasters, as well as mortgages or financial obligations known to the insured but not disclosed, or those that do not result in actual damage. The policy requires full and accurate disclosure of information, granting the insurer the right to reject claims or cancel coverage if any material facts are found to have been concealed. Under the policy, the insurer is obligated to provide legal defence to the insured in disputes falling within the scope of coverage, including undertaking litigation and appointing legal counsel. The insured, in turn, must fully cooperate and provide all required documentation. The insurer must pay compensation within thirty days of receiving the documents necessary to assess the claim, subject to the maximum coverage limit specified in the policy and the application of any agreed annual increase in the sum insured. The policy allows for cancellation by either party in accordance with specified terms and notification periods, with disputes to be resolved through arbitration under the rules of the Egyptian Centre for Voluntary Arbitration. In a notable development, the policy includes an optional endorsement allowing coverage to be extended to unregistered properties, provided that documents establishing the source of ownership are available, such as inheritance documents, auction records, court rulings or allocation decisions. This endorsement also requires submission of a negative certificate from the real estate registry or cadastral register confirming the absence of prior transactions on the property. The endorsement aims to broaden coverage to include common ownership patterns in the Egyptian market that have yet to be formally registered, representing a strategic addition to the regulatory framework governing real estate transactions. Overall, the introduction of Real Estate Title Insurance constitutes a significant enhancement to Egypt's property-market infrastructure, offering a new level of protection for citizens, investors and financial institutions, and reinforcing confidence amid the growing complexity and diversity of ownership structures.
