Comprehensive Guide to Egypt’s Building Violations Reconciliation Law: 2023 Updates and Procedures

The Law on Reconciliation in Building Violations, as introduced under Law No. 187 of 2023, outlines specific provisions for rectifying construction infractions and regularizing structures that do not comply with current regulations. This law aims to address issues stemming from unlicensed constructions and to set standards for adjusting these situations. Below, we explore the key components of this law, including the applicable fines, processes, and objectives, alongside addressing the most common questions regarding the legislation.

Understanding the Law: Fines for Building Violations

Under the new law, specific fines have been set according to the severity of violations. For construction without a permit, and where the building does not meet planning and zoning regulations, the fine is 100% of the property’s value per square meter. A similar fine applies for changing the use of a building in areas without detailed planning schemes.

However, for unlicensed constructions that comply with current planning and zoning regulations, the fine is reduced to 50% of the property’s value per square meter. Further reductions apply for violations related to architectural or structural designs, with these offenses carrying fines of 25%, 20%, and 5%, depending on the severity of the infraction.

This framework encourages property owners to comply with regulations while providing a legal pathway for rectifying past mistakes. The government’s stance is clear: this law is not about imposing arbitrary fees but correcting past errors, stimulating investment, and fostering development in urban areas.

Addressing the Questions Around the Law

Since its introduction in 2019, the law has raised many questions among property owners and developers. This article addresses the most pressing concerns and explains the revisions made in 2020, 2023, and 2024.

1. What is the Law on Reconciliation in Building Violations, and what is its purpose?

Initially introduced under Law No. 17 of 2019, this law aims to address construction violations by regulating and organizing the urban landscape. It serves to correct past mistakes and develop the infrastructure and public services in urban and rural areas alike.

2. Why was the law amended again despite being relatively new?

Although the law was first introduced in 2019, several challenges arose regarding payment systems and documentation requirements. These issues led to the need for adjustments, including lowering the fees, expanding the types of properties covered, and introducing a flexible payment plan allowing property owners to pay in installments over three years. These amendments made the law more practical and easier to implement.

3. What are the key advantages of the recent amendments?

The recent amendments offer several benefits:

• Extending the application period to allow more people to take advantage of the reconciliation process.
• Lowering fines and streamlining application procedures.
• Ensuring that applications are reviewed by specialized committees.
• Taking into account the nature of the area, market values, and social considerations when determining fines.

4. What is the cost per square meter under the 2024 law?

Under the revised law, the cost per square meter varies depending on the region and its development level. Prices range from EGP 50 to EGP 5,000 per square meter, depending on factors like the availability of services and the area’s market value. For example, a property measuring 100 square meters could incur a fine of EGP 5,000 in rural areas and up to EGP 200,000 in more affluent neighborhoods.

5. What are the most recent decisions regarding the 2023 law?

The 2023 law allows for reconciliation in several cases, including:

• Changes in land use in areas without detailed planning schemes.
• Violations involving public easements, provided that an agreement is reached with the rights holders.
• Violations in architecturally significant buildings under specific conditions.
• Building outside approved urban boundaries, subject to certain regulations.

Violations Covered by the Law

The law addresses a wide range of building violations, including:

• Construction without a permit or deviation from approved architectural and structural designs.
• Changing the designated use of a building (e.g., from residential to commercial).
• Adding floors in violation of the approved design.

Property owners are encouraged to correct these violations through the reconciliation process outlined in the law, which includes submitting specific documentation, paying fines, and ensuring that the property complies with planning and zoning regulations.

6. What are the steps for reconciliation?

The reconciliation process involves several stages:

1. Submitting an application and paying the required inspection fee within six months of the law’s implementation.
2. Reviewing the application and determining whether it will be accepted or rejected.
3. Calculating the required fine based on the property’s location and size.
4. If approved, paying the fine and ensuring the building’s façade is fully painted.

7. What documents are required to apply for reconciliation?

Applicants must provide several documents, including:

• A copy of their national ID card.
• A recent utility bill.
• Proof of property ownership.
• Architectural drawings of the property.
• Proof that the violation occurred before April 8, 2019.
• A payment receipt for the inspection fee.

8. Where can reconciliation applications be submitted?

Applications can be submitted to local administrative bodies, including municipal technology centers and local government offices. For properties in new cities, applications should be submitted to the city’s governing authority. Violations related to tourism development projects should be submitted to the General Authority for Tourism Development, while industrial areas fall under the General Authority for Industrial Development.

9. When is reconciliation not permitted?

There are several cases where reconciliation is not allowed under the law, including:

• Buildings that are structurally unsound.
• Properties built on land designated for public use or in proximity to historical landmarks.
• Violations related to open, uncovered parking spaces.

Payment Plans and Fines

One of the key advantages of the recent amendments is the introduction of flexible payment plans. Property owners can pay reconciliation fines over three to five years, making the process more affordable. Furthermore, a 25% discount is offered to those who pay the fine in full upfront.

10. Will buildings be demolished under the new law?

Contrary to popular belief, the law does not aim to demolish buildings. Instead, it seeks to regularize properties that have violated planning and zoning regulations. The goal is to correct mistakes rather than punish property owners, thus avoiding drastic measures like demolitions unless absolutely necessary for public safety.

11. Does the law apply to all buildings constructed before 2008?

Yes, the law applies to all buildings constructed before 2008, including those that violate the Unified Building Code. However, properties in rural areas and villages built before this date may not be covered by the reconciliation process.

12. Who is eligible for reconciliation under the law?

The law applies to several categories of property owners, including those who:

• Have changed the use of land in areas without detailed planning schemes.
• Have violated building height restrictions, with approval from relevant authorities.
• Have constructed buildings on state-owned land after submitting a request to regularize their status.
• Have changed the designated use of properties in areas with approved planning schemes.

13. When can reconciliation requests be rejected?

Reconciliation requests may be denied if:

• The property owner misses the deadline for submitting an appeal.
• The property owner fails to pay the fine in full or in installments.
• The documents submitted are found to be inaccurate or incomplete.

Common Questions About the Law

1. Does reconciliation replace building permits?

No, reconciliation does not replace building permits. However, once a property has gone through the reconciliation process, it is considered legally compliant with all relevant building codes.

2. Is the law designed to generate revenue for the government?

No, the law is not a means of extracting money from citizens. Rather, it aims to correct past planning mistakes, improve urban infrastructure, and ensure that properties comply with current regulations.

3. Where do the funds collected through reconciliation go?

The funds collected through the reconciliation process are allocated to several areas, including infrastructure development, social housing projects, and the improvement of public services.

In conclusion, the Law on Reconciliation in Building Violations provides a much-needed framework for addressing past mistakes in urban planning and construction. By offering flexible payment plans and clear guidelines, the law helps property owners regularize their properties while contributing to the overall development of Egypt’s urban and rural areas.