Selling an Off-Plan Unit by Transfer: Fees and Your Real Net Gain
Bought an off-plan apartment on installments and now want to sell before handover? In Egypt this is usually done through a transfer (tanazol): a new buyer takes your place in the developer contract, pays you what you have paid plus any premium, and continues the installments. The real question is not "what price can I get?" but "what will I actually keep after transfer fees, commission and time?"
How a transfer differs from a normal sale
With an off-plan unit you do not yet own the apartment; you own rights under a contract. Transferring those rights usually needs the developer's approval and a transfer agreement in which the new buyer takes over the remaining installments. Developers often require a minimum share of the price to be paid, no overdue installments, and a fee.
How much are transfer fees?
A legal study of more than 40 developer contracts, reported by Al Banker in September 2026, found transfer fees of 1% to 5% of the unit value, and recommended regulating them. The head of the Real Estate Developers Association told Youlyou the same month that a 15% transfer fee would be illegal and may be confused with other resale costs, adding that broker commissions on resale can reach 6% to 7%.
There is no single rate. Your own contract's transfer clause is the reference, so ask the developer in writing what the fee is and whether it is based on the original price or the new sale price.
Calculating your net gain
Net gain = what the new buyer pays you − what you have paid the developer − transfer fee − broker commission
A hypothetical example, not based on any specific project:
| Item | Amount |
|---|---|
| Original contract price | EGP 1,200,000 |
| Paid so far | EGP 400,000 |
| Premium paid by the new buyer | EGP 150,000 |
| Transfer fee at 3% of original price | EGP 36,000 |
| Broker commission at 2.5% | EGP 30,000 |
A EGP 150,000 premium shrinks to EGP 84,000. Then compare that with what your EGP 400,000 could have earned in a safe savings product over the same period.
Factors to weigh
- Timing: visible construction progress near handover usually builds buyer confidence, but the buyer also needs more cash to buy out what you paid.
- Overdue installments: many developers refuse transfers while payments are late.
- Documents: have the original contract, receipts and a developer statement ready.
- Alternatives: holding until handover, or terminating, which is often costlier because some contracts deduct a share of the total price.
Checklist
- Read the transfer clause and note fees and approval conditions.
- Get an account statement from the developer.
- Clear any overdue installments.
- Calculate your net gain before setting a price.
- Agree the broker's commission in writing.
- Take no money from a buyer until the developer approves the transfer.
- Have a lawyer review the transfer agreement.
FAQ
Can the developer refuse a transfer?
It depends on the contract; many require developer approval and a fee.
Who pays the transfer fee?
There is no fixed rule. Seller, buyer or both may pay, so state it clearly in the agreement.
Is a transfer better than terminating?
Usually it costs less, but run your own numbers and consult a professional for large amounts.
Sources
- Al Banker: Study finds gaps in real estate contracts, transfer fees up to 5% (19 Sep 2026)
- Youlyou: Developers association head says 15% transfer fees are illegal (12 Sep 2026)
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