Home | | Contact Us

Law for Adverse Possession in North

Law for Adverse Possession in North Sinai
At a time when the Governorate of North Sinai is witnessing a series of violent events and a precarious security situation, a recent decree passed by the Cabinet of Ministers appears to attempt to solve a more structural and ongoing problem: "land ownership".[1] The decree, released on 22 September 2014, outlines the conditions regulating “adverse possession” of land and real estate that is used for residential purposes in North Sinai (the "Decree"). The Decree, which states that the sole purpose of such land and real estate must be for residential use, legalizes adverse possession in the region at the cost of 1 EGP per square meter in urban areas, and 0.5 EGP per square metre in rural areas where the total size of the land does not exceed 600m2, and where buildings located on such land do not take up more than 60% of the total space. Should the size of the land exceed 600m2, the price of additional area shall be determined by a specialized evaluation committee. In all cases, the Decision requires 25% of the total value of the land to be paid within a month of the application for legalization, with a commitment to pay the remainder in installments within a year. It is worth noting that the ownership of such land may not be transferred to another person until the total sum has been paid. The Decree also states that any applicant must have built their home on the land before the issuance of the Decree for the Integrated Development of North Sinai (issued on 19 June 2014), and bans any family from benefiting from the legalization of more than two plots of land and homes. The Law also requires that the area intended for legalization must have been adversely possessed in a “calm” manner, free of any forms of serious violence or strife. This means that there should not be significant challenges to the possession of the relevant plot of land.
Citizenship Requirements
In a repetition of other pieces of legislation that govern the Sinai region, the new Decree requires that any applicant for the legalization of adverse possession must hold only Egyptian nationality, and must be born of Egyptian parents. Citizenship requirements for the occupation and possession of land in Sinai have become increasingly complex over the years. In April 2005, the Prime Minister issued a Decision restricting the right of non-Egyptians to lease land (via the right of usufruct) in the Sinai region to 99 years, after it was legal for them to own land. This was followed by a Law in 2007 also prohibiting companies or institutions whose owners are purely Egyptian from owning land and restricting their right to a 99 years lease through usufruct. In 2012, a Law by the then ruling Supreme Council of Armed Forces (Decree No. 14 of 2012) and a later decision by the Ministry of Defense limited the right to lease land to 30 years, renewable up to 50 years. In accordance with these legislations, Egyptian companies owned solely by Egyptian nationals (and not dual nationals) are permitted to own specific plots of land under specific conditions, including a commitment to pursue development projects. Non-Egyptians are also allowed to own buildings under the condition that they do not own the land on which the buildings are situated.   [1] Cabinet of Ministers' Decree No. 6/2014 on Adverse Possession in North Sinai, Official Gazette, Issue No. 38 (bis) (b), 22 September 2014.
At a time when the Governorate of North Sinai is witnessing a series of violent events and a precarious security situation, a recent decree passed by the Cabinet of Ministers appears to attempt to solve a more structural and ongoing problem: "land ownership".[1] The decree, released on 22 September 2014, outlines the conditions regulating “adverse possession” of land and real estate that is used for residential purposes in North Sinai (the "Decree"). The Decree, which states that the sole purpose of such land and real estate must be for residential use, legalizes adverse possession in the region at the cost of 1 EGP per square meter in urban areas, and 0.5 EGP per square metre in rural areas where the total size of the land does not exceed 600m2, and where buildings located on such land do not take up more than 60% of the total space. Should the size of the land exceed 600m2, the price of additional area shall be determined by a specialized evaluation committee. In all cases, the Decision requires 25% of the total value of the land to be paid within a month of the application for legalization, with a commitment to pay the remainder in installments within a year. It is worth noting that the ownership of such land may not be transferred to another person until the total sum has been paid. The Decree also states that any applicant must have built their home on the land before the issuance of the Decree for the Integrated Development of North Sinai (issued on 19 June 2014), and bans any family from benefiting from the legalization of more than two plots of land and homes. The Law also requires that the area intended for legalization must have been adversely possessed in a “calm” manner, free of any forms of serious violence or strife. This means that there should not be significant challenges to the possession of the relevant plot of land.
Citizenship Requirements
In a repetition of other pieces of legislation that govern the Sinai region, the new Decree requires that any applicant for the legalization of adverse possession must hold only Egyptian nationality, and must be born of Egyptian parents. Citizenship requirements for the occupation and possession of land in Sinai have become increasingly complex over the years. In April 2005, the Prime Minister issued a Decision restricting the right of non-Egyptians to lease land (via the right of usufruct) in the Sinai region to 99 years, after it was legal for them to own land. This was followed by a Law in 2007 also prohibiting companies or institutions whose owners are purely Egyptian from owning land and restricting their right to a 99 years lease through usufruct. In 2012, a Law by the then ruling Supreme Council of Armed Forces (Decree No. 14 of 2012) and a later decision by the Ministry of Defense limited the right to lease land to 30 years, renewable up to 50 years. In accordance with these legislations, Egyptian companies owned solely by Egyptian nationals (and not dual nationals) are permitted to own specific plots of land under specific conditions, including a commitment to pursue development projects. Non-Egyptians are also allowed to own buildings under the condition that they do not own the land on which the buildings are situated.   [1] Cabinet of Ministers' Decree No. 6/2014 on Adverse Possession in North Sinai, Official Gazette, Issue No. 38 (bis) (b), 22 September 2014.