Justice Ministry Imposes Fresh HLP Restrictions
On March 10, Minister of Justice Ahmed Al-Sayed issued two circulars that restrict the ability of property owners in concerned areas to manage their properties. The first, No. 3, concerns lawsuits related to the partition, subdivision, termination of common property and correction of property descriptions. The second, No. 4, deals with the irrevocable power of attorney in areas undergoing beautification and the termination of common property.
Circular No. 3
Circular No. 3 is directed at judges in judicial bodies dealing with cases related to the termination of common property ownership, subdivision, and the correction of property descriptions. It mandates adherence to the content of previous circulars issued by the ministry concerning these cases. Additionally, Circular No. 3 emphasises that the Judicial Inspection Directorate (JID) and public prosecutors monitor the proper application of the circular and report any violations.
JID is an independent judicial entity headed by a judge, affiliated with the Higher Judicial Council and the Justice Minister. Its role includes regular inspections of the work of judges, courts, judicial departments, public prosecution, notary public offices, bar associations, and their branches, among other legal and judicial entities. A public prosecutor is a judge who works under the supervision of the Attorney General in the public prosecution office, is assigned tasks by the Attorney General, and receives complaints about the judicial system and public prosecution.
Circular No. 3 requests judges, the JID, and public prosecutors to adhere to the contents of a previous circular, No. 40 of 2016. This circular asserts that the relevant administrative units must be represented in cases concerning the subdivision and correction of property descriptions. If the co-owners of a common property do not agree on its voluntary partition, they must file a lawsuit in court for its division among them through a judgement that can be executed in the Land Registry, except in cases of obstacles such as construction violations. To ensure no such violation exists, the administrative units must be represented in these cases as the executive authority in the concerned real estate area, knowledgeable about zoning plans and building codes.
Furthermore, Circular No. 3 instructs judges, the JID, and public prosecutors to comply with the procedures and provisions of Article 64 of the Local Administration Law No. 107 of 2011 concerning partition, subdivision, and zoning cases, as stipulated in the previous Circular No. 27 of 2021. Zoning cases are legal actions filed by a property owner if they suffer a loss due to the zoning of the area, such as receiving inadequate compensation.
Article 64 of Law No. 107 of 2012 states that it is not permissible to divide, subdivide, or zone lands within the boundaries of an administrative unit, or to subdivide any already built construction, without a certified plan from the administrative unit. This plan must delineate the property boundaries and its surroundings, including the locations of main and side streets, and public utilities.
Circular No. 4
Meanwhile, Circular No. 4, addressed to notaries, the JID, and public prosecutors, responds to a previous letter from the Central Authority for the Supervision and Inspection (CASI) regarding some notaries’ violations of the provisions of Article No. 4 of the Beautification and Termination of Common Property Law No. 166 of 1967 and its amendments. These violations involve documenting irrevocable power of attorneys in property areas subject to beautification and termination of common property operations.
The CASI is an independent regulatory body affiliated with the Prime Minister, aiming to achieve effective supervision over the state’s administrations and institutions. This is to improve performance, preserve public funds, enhance productivity and efficiency, and facilitate the provision of services to citizens.
Law No. 166 of 1967 on the beautification and termination of common property is still in force. Its first article clarifies that the purpose of beautification and termination of common property operations is to partition commonly owned agricultural lands among their owners, or to beautify excessively fragmented agricultural lands by providing the owner with a single plot instead of several scattered ones. This aims to facilitate the investment and reclamation of lands. Article 3 of the law stipulates the formation of a committee in each real estate area to conduct beautification and termination of common property tasks. This committee includes the area’s real estate judge, the director of the Land Record in the governorate, the head of technical services directorate, a representative from the General Union of Farmers, and an expert from the local community appointed by the governor as a member.
Article 4, mentioned in the Justice Minister’s circular, specifies that upon the formation of the Beautification and Termination of Common Property Committee, all courts must refer all cases related to real property rights within the concerned property area to this committee. Furthermore, implementation departments must refrain from enforcing any cases related to the real property rights of that area. Additionally, the Land Record must abstain from accepting and registering any property transactions for the mentioned area until the completion of the operations is announced and the properties resulting from the beautification and termination of common property are registered in the names of their owners in the Land Record.
Law No. 166 of 1967 sets the duration of the Beautification and termination of common property Committees’ work at six months for a property area that does not exceed 100 properties after beautification, and eight months for an area with 200 properties. However, if the committee’s work exceeds these periods, the law states that the committee should not receive any additional compensation. In practice, there are entire areas where the committees have not completed their work despite decades passing since their formation. This includes areas of Damascus, such as in East Tijara, Adawi, and the planning area of South Midan.
Circular No. 4 also requests notaries to refrain from documenting any irrevocable power of attorney that includes the authorisation to sell property in an area where beautification and termination of common property operations have been announced, due to what the circular describes as preventing the obstruction of the committees’ work.
The incomplete work of the committees has led property owners, who are in need to sell their properties, to draft sales contracts and have them notarised as irrevocable power of attorney, wherein the seller delegates the buyer to transfer the property ownership to their name upon the completion of the beautification and termination of common property operations. Thus, the new circular stops this method of selling in areas under beautification and termination of common property until the committees have completed their work, arguing that these notarised irrevocable power of attorney obstruct the committees’ work due to changes in ownership.
