FRA Prohibits Real Estate Finance and Leasing Companies from Engaging with Unregistered Appraisers – Tuesday 29 July 2025

FRA has issued Circular No. 4 of 2025, to bolster the integrity of real estate valuations within the non-banking financial sector. The new rule strictly prohibits real estate finance and financial leasing companies from engaging with any real estate appraisers not officially registered and approved by FRA. This applies to both individual appraisers and valuation firms. FRA emphasizes that any violation of this circular will be considered a direct breach of regulations, leading to accountability.

The circular defines a real estate appraiser as any individual or legal entity responsible for assessing property values for real estate finance purposes. It also mandates full compliance with the Egyptian Valuation Standards (EVS), set by FRA Board of Directors resolution No. (39) of 2015, in all valuation processes.

Furthermore, FRA has made it clear that valuation reports from unregistered entities will be considered null and void and cannot be used for any financial or financing transactions. Non-compliance with these instructions is a direct violation of the Real Estate Finance Law No. (148) of 2001 and its amendments, exposing infringing companies to legal and regulatory action.

This directive reinforces FRA’s crucial role in regulating non-banking financial activities, as outlined in Articles No. (3) and (4) of Law No. (10) of 2009 concerning the regulation of non-banking financial markets and instruments.

This action directly addresses non-compliant practices identified by the Authority. FRA observed some real estate finance and financial leasing companies conducting business with appraisal entities and individuals not officially listed at real estate appraisers’ registry.

Last modified: July 31, 2025
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