Power of Attorney to Sell to Oneself in Egypt: Validity & Risks
What a power of attorney to sell to oneself or others means in Egypt, when it is valid, its risks for buyers and sellers, and how to protect yourself.
In Egypt, many apartments and cars change hands without a registered sale contract. The seller simply gives the buyer an official power of attorney "to sell to himself and to others", and the deal is considered done. It is fast and cheap, but it carries risks that many buyers only discover years later. Here is how this power of attorney works, when it is valid, and how to protect yourself.
What does "to sell to oneself and to others" mean?
It is an official power of attorney that lets the agent sell a specific property, such as an apartment, land or a car, either to themselves or to anyone else, and sign the contracts and registration papers on the owner's behalf.
Why the phrase "to oneself"? Because, as a rule, an agent can't make a contract with themselves on the owner's behalf unless the owner explicitly allows it. Without that phrase, the buyer couldn't transfer the property into their own name using the power of attorney.
Why do people use it?
To avoid, or postpone, the cost and time of registering the sale.
To make reselling easier, since the holder can sell directly to a new buyer.
For cars, it is often used instead of transferring the license immediately.
When is it valid?
It must be issued officially at a notary office.
The property must be described precisely: address, unit and area for real estate, or chassis and plate numbers for a car.
The owner's name and national ID number must be correct. A wrong ID number is a problem that needs fixing at the notary office.
The owner must have full legal capacity when signing.
The risks of relying on the power of attorney alone
Legally, the owner is still the owner until the sale is registered. That has consequences:
An ordinary power of attorney can be cancelled by the owner, and it generally ends when the owner dies, unless it was issued in the agent's interest.
Debts or seizures against the owner can reach the property, because it's still in their name.
For the seller, traffic fines and taxes on a car can still come to them until the license is transferred.
How to protect yourself as a buyer
Don't settle for the power of attorney alone. Sign a sale contract with the price and a payment receipt.
Ask for the power of attorney to state that it is in the agent's interest and can't be cancelled except in the presence of both parties.
Check the chain of ownership before you pay.
Start registering the property, or file a validity and enforcement case, as soon as you can.
When can the sale be void?
A sale made with the power of attorney can be challenged if the agent exceeded the powers written in it, if the power of attorney was forged, if the owner lacked legal capacity, or if the agent sold after knowing it had been cancelled. Each case depends on its facts, so get legal advice before you act.
Why EL-LWAA
We have been handling property and power of attorney cases for more than 40 years. In this video, Mr. Salah Ellwaa explains the conditions for a valid power of attorney to sell to oneself or others:
Contact us before you buy with a power of attorney, and we'll review the papers with you.
FAQ
Does an official power of attorney need witnesses?
Usually not, except in special cases, such as an owner who can't read or write.
The national ID number in the power of attorney is wrong. Is it cancelled?
It isn't automatically cancelled, but it can cause problems when you use it. Go back to the notary office to correct it as soon as possible.
Is the power of attorney still valid if the seller dies?
An ordinary power of attorney generally ends with the owner's death, unless it was issued in the agent's interest. Contact us to review your case.
Can the owner cancel it after selling to me?
If it wasn't issued in your interest, the owner may be able to. That's why you should have a sale contract and a clause stating it is in the agent's interest.
Is the power of attorney enough to prove I'm no longer responsible for a property I sold?
It's better to keep a signed sale contract with the buyer, and to push for the transfer to be completed, so the property is no longer in your name.