Simply put, property maintenance fees (sometimes known as service charges) are\u00a0fees paid by the property\u00a0owner\u00a0<\/strong>for the maintenance and services of the unit<\/span>. Moreover, these fees cover ongoing community management, security, and all shared facilities inside a building or a compound.<\/p>\n What are the categories<\/strong> of property maintenance fees, you might ask? Here is a breakdown of what these fees are concerned with:<\/p>\n Now that you understand the breakdown of the property maintenance fees, let’s tell you how it is calculated.<\/p>\n Villas for sale in New Cairo<\/a><\/span><\/p>\n Property maintenance fees in Egypt are regulated by Egypt Law No. 119 of 2008 (the Unified Building Law)<\/strong> and its Executive Regulations (issued under Prime Minister\u2019s Decree No. 144 of 2009). It is governed by the Egyptian Civil Code<\/a><\/span> (ECC 131\/1948).<\/p>\n Also, according to this law, the maintenance expenses are divided into\u00a02\u00a0<\/strong>complementary types:<\/p>\n Moreover, their details are as follows:<\/p>\n (the amount differs according to the type, location, and use of the unit)<\/b><\/td>\n (the amount differs according to the type, location, and use of the unit)<\/b><\/td>\n <\/p>\n What compounds in Egypt impose these fees? Let us tell you in the following section!<\/p>\n In fact, maintenance fees are not an optional item; they are a fee regulated by Egyptian law and should be paid in all real estate projects all over Egypt. So, these service charges should be applied in all compounds in all areas, such as:<\/p>\n\n
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How Are Property Maintenance Fees Calculated in Egypt?<\/h3>\n
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\n Maintenance Fee Type<\/b><\/td>\n Description\u00a0<\/b><\/td>\n Cost<\/b><\/td>\n Coverage\u00a0<\/b><\/td>\n<\/tr>\n \n One-time Maintenance Deposit “Wadiaa” (Sinking Fund)<\/b><\/td>\n A single, one-time lifetime lump sum payment paid to the developer. The Egyptian Civil Code ensures its payment into a dedicated bank account whose interest is dedicated to funding the upkeep of the unit\u00a0<\/span><\/td>\n around 8%-10% of the total property purchase price; paid in bulk or in installments till the unit’s delivery date; however, owners don’t take over the unit until these fees are fully paid\u00a0<\/span><\/p>\n All the major structural repairs, replacements, and long-term facility updates.<\/span><\/td>\n<\/tr>\n \n Annual Recurring Service Charge<\/b><\/td>\n A recurring monthly, quarterly, or annual fee calculated as a percentage of the unit price that covers daily operations\u00a0<\/span><\/td>\n around 2% to 5% of the unit’s price annually <\/span>(paid monthly or quarterly)<\/span>; calculated based on the need for annual maintenance measures of the property\u00a0<\/span><\/p>\n All the daily upkeep, such as 24\/7 security, landscaping, pool care, elevator maintenance, and common utilities.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n What are Compounds Imposing Property Maintenance Fees?<\/h3>\n
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