Market price and 20% increase..Controls and conditions for expropriation of real estate for the public benefit

08:00 am

Wednesday January 12 2022

Books – Muhammad Nassar:

The government, through its various institutions, implements development projects, re-planning and new axes, which requires the provision of suitable lands for these projects. Decisions are issued to expropriate ownership for the public benefit, with regard to agricultural lands or construction lands.

Decisions of expropriation for the public benefit are issued based on Law No. 10 of 1990 promulgating the Law of Expropriation of Real Estate for the Public Interest and its latest amendment on September 5, 2020.

According to the provisions of the law: It is considered as an act of public interest in the application of the provisions of this law:

1- Constructing, expanding, modifying or extending roads, streets and squares, or constructing new neighborhoods.

2- Water and sanitation projects.

3- Irrigation and drainage projects.

4- Energy projects.

5- Construction or modification of bridges, surface walkways (towers) and underpasses.

6- Transportation and communications projects.

7- The purposes of urban planning and improvement of public facilities.

8- What is considered a public benefit activity in any other law.

It is permissible, by a decision of the Council of Ministers, to add other works of public interest to the aforementioned works.

The expropriation may also include, in addition to the real estate needed for the original project, any other real estate that the organizing authority deems necessary to achieve the purpose of the project or because its remaining in its condition in terms of shape or area is inconsistent with the required improvement.

public benefit report

The public interest report shall be made by a decision of the President of the Republic or his authorized representative, accompanied by the following:

1- A memorandum explaining the project to be implemented, explaining the value of the initial compensation that must be deposited in the account of the party carrying out the expropriation procedures referred to in the text of Article 6 of this law, within one month from the issuance of the public interest decision.

2- A drawing of the overall planning of the project and the real estate needed for it.

Publication in the Official Gazette

The decision decided for the public benefit, together with a copy of the memorandum referred to in Article 2 of this law, shall be published in the Official Gazette, and posted in the place prepared for advertisements in the headquarters of the local administration units, at the mayor or police headquarters, and in the court of first instance in which the property is located, and on the front of the property a place Apparent expropriation.

The delegate of the entity in charge of the expropriation procedures, once the publication stipulated in the previous article, has the right to enter the lands that are determined to be necessary for the work of public interest, according to the overall planning of the project, for longitudinal projects to conduct technical and survey operations, put identification marks, and obtain the necessary data regarding the property.

For on-site buildings and projects, the concerned parties shall be notified by a registered letter with acknowledgment of receipt prior to entering the property.

Procedures for inventorying real estate and property

Article 5 stipulates that the inventory and identification of real estate and establishments that have been determined to be necessary for the public interest shall be by a committee composed of a representative of the body carrying out the expropriation procedures, a local administration man, and a cashier.

The aforementioned inventory process is preceded by an announcement of the date that is set to be carried out, which is posted in the place prepared for advertisements in the headquarters of the local administration units, at the mayor’s headquarters, and on the front of the property subject to expropriation in a visible manner. Owners and rights holders to appear before the mentioned committee on the project site to instruct their properties and rights.

The committee shall issue a report showing these properties, the names of the owners, the owners of rights and their places of residence, based on the guidance in their locations.

The members of the aforementioned committee and all those present shall sign the inventory lists, acknowledging the validity of the data contained therein.

How to Calculate Public Benefit Compensation

Compensation is estimated according to the prevailing prices at the time of the public benefit decision, plus 20% of the estimate value. List of expropriation procedures.

In the event that the party requesting expropriation delays depositing the amount of compensation on the aforementioned date, this body shall pay an additional compensation for the delay period at the rate of interest declared by the Central Bank.

List of names

In accordance with Article 7, the party undertaking the expropriation procedures shall be entrusted after depositing the amount of compensation stipulated in Article 6 of this law, lists from the reality of the inventory and identification process stipulated in Article 5 of this law, showing the real estate and establishments that have been enumerated, their area, location, and the names of their owners. These lists are displayed with maps showing the location of these properties at the headquarters of this authority, and at the headquarters of the Survey Directorate or its affiliated administration in the capital of the governorate in which the real estate is located, and in The mayor’s seat, at the local unit’s headquarters, and on the front of the property, which is the subject of expropriation in a visible manner, for a period of one month. The owners, stakeholders, and the party requesting expropriation shall be notified of this offer by a registered letter accompanied by acknowledgment of receipt.

This presentation is preceded by one week in the Egyptian Gazette – supplement to the Official Gazette – and in two widely circulated daily newspapers, including the project statement and the specific dates for displaying lists and maps in the mentioned places.

The owners and rights holders shall be notified of the necessity of eviction within a maximum period of five months by registered letter with acknowledgment of receipt.

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