Legal Procedures for Buying Property in Jordan: A Step-by-Step Guide
Are you considering buying property in Jordan? Whether you’re a local buyer or an international investor, understanding the legal process is essential for a smooth and secure transaction. Jordan’s real estate market is thriving, offering diverse options like residential properties, commercial properties in Jordan, as well as residential lands for sale. With the right guidance, purchasing property can be an exciting and rewarding experience.
In this step-by-step guide, we’ll walk you through everything you need to know about the legal procedures, required documents, and key considerations when buying property in Jordan.
1. Understand Property Ownership Laws in Jordan
Before you dive into the market, it’s important to understand Jordan’s property ownership laws:
- Foreign Ownership Rules: Non-Jordanians can buy property, but they need approval from the Ministry of Interior, which usually takes around 30 days.
- Land Usage Regulations: Some areas have restrictions on foreign ownership, so it’s crucial to check before investing.
- Freehold vs. Leasehold: Most properties in Jordan are freehold, meaning you own the property outright. However, certain areas may have leasehold agreements.
2. Best Freehold Areas in Jordan
Looking for prime freehold locations? Here are some of the best areas to consider:
- Amman: The capital city offers a mix of modern apartments, villas, and commercial spaces, making it ideal for both living and investment.
- Aqaba: A beautiful coastal city with beachfront properties and excellent investment potential.
- Dead Sea Region: Perfect for resort-style living and high-end developments.
- Irbid & Zarqa: Affordable residential properties with growing demand and potential appreciation.
3. Can Foreigners Buy Property in Jordan?
Yes, foreigners can purchase property in Jordan, but there are some requirements to be aware of:
- Government Approval: Non-Jordanians need approval from the Ministry of Interior before finalizing a property purchase.
- Size and Type Restrictions: The government may impose limits on the size and type of property foreign buyers can own.
- Investment Benefits: Property ownership in Jordan can open doors to long-term residency and business opportunities.
4. Hiring a Local Real Estate Lawyer
Navigating Jordan’s real estate market can be complex, so hiring a local real estate lawyer is highly recommended. A lawyer can help you:
- Verify property ownership and title deeds.
- Ensure compliance with Jordanian real estate laws.
- Handle legal paperwork and prevent potential disputes.
5. Verify Property Title and Ownership
Before you sign anything, make sure to confirm the legal status of the property:
- Request a title deed (Sanad Malekiya) from the Department of Land and Survey.
- Check for any existing mortgages or legal disputes associated with the property.
- Ensure the seller has full legal rights to transfer ownership.
6. Sign a Preliminary Sale Agreement
Once you’ve completed due diligence, the next step is signing a preliminary sale agreement. This document typically outlines:
- The agreed purchase price
- Payment terms and conditions
- Property transfer timeline
- Any penalties for withdrawal
This contract secures the deal while final legal approvals and payments are processed.
7. Obtain Government Approvals
For foreign buyers, securing Ministry of Interior approval is a necessary step. Additionally, depending on the property’s location and type, municipal authorities may need to grant permits before the sale is finalized.
8. Pay the Required Fees and Taxes
Understanding the financial aspects of property purchases is crucial. Buyers in Jordan must pay:
- Property Registration Fee: Around 9% of the property’s declared value.
- Stamp Duty: Based on the type and value of the property.
- Legal Fees: Typically 1-2% of the purchase price, covering lawyer and notary fees.
9. Finalize the Sale and Transfer Ownership
The last step is the official transfer of ownership at the Department of Land and Survey. Here’s what happens:
- The buyer makes the full payment.
- Government records are updated with the new ownership details.
- The buyer receives the official title deed (Sanad Malekiya), marking the completion of the transaction.
Mortgage for Buying Property in Jordan
If you need financial assistance, Jordan offers mortgage options through banks and financial institutions. Key aspects to consider:
- Eligibility Requirements: Banks evaluate income, credit score, and residency status.
- Loan-to-Value Ratio: Most banks offer up to 80% financing.
- Interest Rates: Vary based on market conditions and lender policies.
- Repayment Period: Typically ranges from 5 to 25 years, depending on the loan agreement.
Things to Consider Before Buying Property in Jordan
Before making your final decision, here are some crucial factors to keep in mind:
- Location Matters: Choose an area that aligns with your lifestyle and investment goals. For instance, residential properties in Amman offer a vibrant city life, while residential properties in Dabouq provide stunning coastal views.
- Market Trends: Stay informed about property price trends and future appreciation potential.
- Legal Compliance: Double-check that all paperwork is legitimate and that you’re not missing any approvals.
- Hidden Costs: Factor in maintenance fees, service charges, and possible renovations before finalizing your purchase.
Conclusion
Buying property in Jordan is an exciting opportunity, but understanding the legal steps involved is key to making a safe and informed investment. Whether you’re looking for a modern apartment, a beachfront villa, or luxury properties in Amman, ensuring legal compliance will protect your interests.
For expats in Jordan, the real estate market offers excellent investment opportunities, and with the right legal guidance, the process can be seamless.
Looking for the perfect property? Connect with Bayut Jordan today to explore available listings and expert real estate advice!
