The Egypt Financial Regulatory Authority has warned property buyers to review installment-sale contracts carefully after complaints showed that some customers had overlooked clauses allowing developers to assign contracts or related financial rights to mortgage finance companies. The clarification addresses the treatment of buyers when developers transfer receivables under such arrangements, complementing the regulatory framework for mortgage companies’ purchases of developer receivables. When rights are assigned, the developer and mortgage finance company must notify the buyer of the assignment and explain how the remaining installments should be paid. Under Article 305 of the Civil Code, an assignment is not effective against the debtor or third parties unless the debtor accepts it or receives notice. The buyer then becomes a customer of the mortgage finance company, which must report the customer’s outstanding debt to I-Score each month under credit-position reporting rules, making the obligation visible to other credit providers.
2026-09-02Egypt Financial Regulatory Authority
Egypt Financial Regulatory Authority clarifies buyer notification and I-Score reporting duties for assigned property debts
The Egypt Financial Regulatory Authority has reminded property developers and mortgage finance companies that buyers must be notified when installment receivables are assigned and told how to pay the remaining balance. Mortgage finance companies must report the resulting customer debt to I-Score each month, making it visible to other credit providers.