Urgent: The Financial Regulatory Authority prohibits real estate finance and leasing companies from dealing with appraisal agencies not registered with the Authority.
In confirmation of the regulatory role played by the Authority in supervising non-banking financial activities
The Financial Regulatory Authority (FRA) issued Circular No. 4 of 2025 prohibiting companies operating in real estate finance and financial leasing from dealing with real estate appraisers who are not officially registered and accredited in the Authority's official register of real estate appraisers, whether natural or legal persons. This constitutes a clear violation that warrants accountability.
A real estate appraiser is any natural or legal person who carries out the tasks of evaluating real estate and determining its value for all real estate financing purposes.
The circular stipulates that full compliance with the Egyptian Real Estate Appraisal Standards, issued by Authority Board of Directors Resolution No. 39 of 2015, must be adhered to in all appraisal processes used.
The circular affirmed that evaluation reports issued by entities not registered in the official registry are invalid and unaccredited, and may not be relied upon in any financial or funding transactions.
Violation of these instructions constitutes a clear violation of the provisions of Real Estate Finance Law No. 148 of 2001, its executive regulations, and its amendments, which exposes the violating company or entity to legal and regulatory accountability.
This comes as confirmation of the regulatory role played by the Authority in supervising non-banking financial activities, and based on the provisions of Articles 3 and 4 of Law No. 10 of 2009 regulating the supervision of non-banking financial markets and instruments.
This came as a result of the Authority's observation of illegal practices by some real estate finance and financial leasing companies, which included dealing with entities and individuals not registered in the official register of real estate appraisers, whether in their natural or legal capacity.
