Buying in a Building with Violations: What to Know About Egypt's Reconciliation Law

Masari Team

Found a good apartment in a building with an extra floor or an unlicensed change? Before talking price, ask whether that violation can be legalised and who carries the cost. Egypt's Building Violations Reconciliation Law No. 187 of 2023 only allows certain violations to be reconciled, and a non-compliant building with no application, or a rejected one, can be denied utility connections and property registration.

This is general information, not legal advice. Consult a real estate lawyer before buying in any building with violations.

Latest: a new application window

Al Dostor and Sada El Balad reported on 15 October 2026 that the government extended the application period by six more months starting 5 November 2026; Sada El Balad puts the end date at 4 May 2027. The law allows extensions of the same length up to a three-year total, so the door is open, but not indefinitely.

What can and cannot be reconciled

Under the law, violations that predate it and do not affect structural safety can be reconciled, with special rules for cases such as some changes of use and some encroachments. It excludes:

  • Works that compromise structural safety.
  • Building on land protected by the antiquities or Nile protection laws.
  • Converting parking garages to other uses.

Why buyers should care

  • Utilities: the law bars connecting utilities to non-compliant buildings without an application or with a rejected one, and already-connected ones are billed at cost without subsidy.
  • Registration: notarisation and registration procedures cannot proceed for such buildings, which hits resale value and liquidity.
  • Approval acts as a licence: once reconciliation is accepted it counts as a permit, but only for works present at inspection.

Costs and who pays

The law sets a per-square-metre price, decided by the competent authority for each zone, between EGP 50 and EGP 2,500. There is also an inspection fee capped at EGP 5,000 and a seriousness deposit of up to 25% of the expected amount, paid with the application. The balance can be paid in instalments over up to five years, and an upfront discount of up to 25% is possible by prime ministerial decision. Put in writing who pays what.

How to check a building before you buy

  1. Ask for the original building permit and compare it with what is built.
  2. Ask whether a reconciliation application was filed; the authority must issue a certificate proving it.
  3. Confirm the stage: a filed application is not approval.
  4. Check with the competent authority yourself; in New Damietta, ask the city agency.
  5. Get an independent structural engineer for extra floors or structural changes.
  6. Have a lawyer draft clauses covering a rejected application.

Pre-signing checklist

  • Permit and approved drawings.
  • Application certificate or acceptance decision.
  • Fee and deposit receipts.
  • Official utility meters.
  • A contract clause on who pays reconciliation costs.

FAQ

Is it enough that the seller filed an application?

No. Filing pauses some enforcement but is not approval. Ask for the current status.

Can a garage converted into shops be legalised?

The law excludes garage conversions, so treat these as high risk.

How much will reconciliation cost?

It depends on the zone, area and violation type. Request an official estimate before agreeing on price.

When does the current window end?

Reports say the new six-month window starts on 5 November 2026. Follow official announcements for updates.

Before contacting any seller, Masari lets you compare unit prices, floor plans and payment plans in one place.

Sources