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Real Estate Installment Plans in Egypt: Managing Missed Payments

Egypt’s real estate market offers numerous opportunities for investors, including Real Estate Installment Plans in Egypt that make property ownership more accessible. These plans allow buyers to pay for their property over a period of time through scheduled installments. However, missing an installment can lead to significant consequences. This article explores the relevant laws under Egypt’s legal framework and the steps to take if you miss an installment.

Understanding Installment Plans

Installment plans typically involve a payment schedule where buyers pay an initial down payment followed by regular installments over a specified period. These plans often come with terms detailing grace periods, penalties for late payments, and conditions under which the buyer is considered in default. Additionally, the agreements outline the actions the developer can take if the buyer defaults.

Relevant Laws in Egypt

Installment plans in Egypt are governed by various laws and regulations, including:

  • Civil Code (No. 131 of 1948):
    • Articles 148-157 cover the general principles of contracts, including the obligations of parties and consequences of non-performance.
    • Articles 418-430 deal with the sale of property, including installment sales.

Consequences of Missing an Installment

Missing an installment on a real estate payment plan can have several repercussions. Initially, most contracts stipulate interest charges on overdue payments and may include fixed late fees. Some contracts provide a grace period during which the installment can be paid without penalties. However, once this period lapses, the developer may issue a formal notice of default, giving the buyer a final chance to make the payment.

If the payment remains unpaid, the developer may initiate eviction proceedings or other legal actions to recover the outstanding amounts.

Solutions and Support from Andersen Egypt

At Andersen Egypt, we understand the complexities and challenges that can arise with real estate installment plans. We offer comprehensive legal services to assist clients who have missed payments. We can help negotiate new payment terms with the developer, potentially avoiding severe penalties and legal actions.

If the developer takes unjust actions against you, we can represent you in court to seek fair treatment and protect your rights. Our attorneys can initiate legal proceedings against the developer if necessary to enforce your rights under the contract.

Steps to Take If You Miss an Installment

1. Contact the Developer:

As soon as you realize you will miss an installment, contact the developer to explain your situation and seek an amicable solution.

2. Review the Agreement:

Carefully review your installment agreement to understand the penalties and remedies for missed payments.

3. Seek Legal Advice:

Consulting with a real estate attorney can help you understand your rights and options. Andersen Egypt’s experienced attorneys can assist in negotiating with the developer and protecting your interests.


Installment plans are a popular way to purchase real estate in Egypt, offering flexibility and accessibility. However, it is essential to understand the terms of your agreement and the consequences of missing a payment. By being proactive and seeking professional advice, you can navigate these challenges effectively and protect your investment.

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Written By

Joseph Iskander - Attorney-at-law

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