The Financial Regulatory Authority (FRA), led by Mohamed Farid, announced the issuance of a specialized document under the name “Real Estate Ownership Bond Insurance.”
This new model allows insurance companies to provide coverage for buyers against any risks related to the validity of ownership or any flaws in the proof of ownership that were unknown prior to the completion of the purchase.
In a statement Saturday 27/12/2025, the authority explained that the launch of this document represents a significant regulatory shift in the Egyptian real estate market.
It reflects the authority’s commitment to enhancing transparency, protecting the rights of participants, and boosting confidence in real estate transactions.
Additionally, it supports efforts to export Egyptian real estate by offering ownership stability to foreign investors.
FRA Chairman Mohamed Farid confirmed that activating the Real Estate Ownership Bond Insurance is a historic milestone. It offers an innovative and unprecedented coverage that protects participants in the Egyptian real estate market from any risks arising from defects in ownership proof after purchase, as outlined in the insurance policy.
He added that, for the first time, the document enables buyers to obtain insurance coverage against the risks specified in the document, including risks arising from the appearance of defects in the ownership bond that were previously unknown.
He explained that the ownership bond is the legal document that proves an individual or entity’s right to own a specific property, outlining the boundaries of the property and the rights and obligations of the owner. Insurance on this bond is mainly used when purchasing properties, like homes, to protect both the buyer and the lending bank from any financial losses that may result from issues or defects in the ownership bond.
He pointed out that this type of insurance is an advanced tool used in global markets, and the authority is now providing it in Egypt to enhance market confidence and decrease ownership-related disputes.
The document was issued as part of the Financial Regulatory Authority’s goal to enhance the efficiency and quality of non-banking financial services, enabling citizens and investors make safer decisions.
He emphasized: “Our goal is for the buyer in Egypt to feel protected from any surprises or claims that may arise later and threaten their ownership of the property.”
Farid explained that the document comes at a time when the real estate market is witnessing a wide variety of ownership sources and types of properties, increasing the need for advanced insurance mechanisms to enhance sector stability and provide protection for the rights of participants concerning property ownership.
The statement noted that the insurance document will help build trust between buyers and sellers, reduce potential legal disputes, encourage more investments in the real estate sector, and raise transparency. This will regulate transactions to protect the rights of all parties and reduce the risks related to ownership, for both citizens and investors, as well as financial institutions involved in real estate financing.
It clarified that the insurance coverage includes compensation for the insured in case any rights of third parties emerge or disputes challenge the validity of ownership, whether due to forgery, misrepresentation, lack of legal capacity, or any other cause that affects the strength of the ownership bond.
The document includes an additional annex that extends protection to include unregistered properties, provided there are documents proving the ownership source, such as inheritance, auctions, court rulings, or allocation decisions.
It is also required to provide a negative certificate from the Real Estate Registry or Land Registry to ensure there are no previous transactions on the property. This annex seeks to expand the protection scope to include common ownership types in the Egyptian market that have not yet been officially registered.
The authority affirmed that this step represents a strategy to reshape the real estate transactions system by providing a new level of protection for investors and citizens, especially given the diversity of ownership sources and the history of properties, enhancing sector stability, and boosting confidence in the Egyptian real estate market.
