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 ownership validity and unknown title defects at purchase. This move marks a qualitative regulatory shift in Egypt's real estate market, enhancing transparency, protecting rights, and building confidence in transactions.
In a historic step, the Financial Regulatory Authority issued a model policy for Real Estate Title Insurance on December 27, 2025, to bolster stability in Egypt's real estate market. The policy allows insurance companies to cover buyers and financing banks against losses from undiscovered issues in ownership documents, such as third-party claims, fraud, or prior financial liens.
Mohamed Farid, FRA Chairperson, stated: "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."
A real estate title deed is the legal document proving ownership of a specific property, defining its boundaries as well as the rights and obligations of the owner. Title insurance differs from conventional home insurance, protecting against past unknown problems rather than future events like fire or theft.
Coverage includes compensation for disputes due to forgery, lack of legal capacity, registration impossibilities, and expenses from prior liens. Exclusions cover building violations, government expropriation, war, riots, and natural disasters.
The policy requires full disclosure of information, with the insurer obligated to provide legal defense and pay compensation within 30 days. It also features an optional endorsement for unregistered properties, requiring ownership documents and a negative certificate from the real estate registry.
This framework aims to support the export of Egyptian real estate and boost confidence among foreign investors amid diverse ownership sources in the market.