Buying Properties in Jordan: A Step by Sstep Guide
Whether you’re a local buyer or an investor from overseas, understanding the legal process is essential in order to guarantee a transaction which is both smooth and secure. With the right guidance, you can guarantee a property buying experience which is both enjoyable and rewarding.
In order to ensure success however, the legal procedures, required documents alongside the key considerations should be clearly understood:
Property Ownership Laws and Restrictions in Jordan
- Foreign Ownership Rules: While non-Jordanians are able to buy property, an approval from the Ministry of Interior which usually takes 30 days must be obtained.
- Land Usage Regulations: Since some areas bear restrictions on foreign ownership, I it important to check before investing.
- Freehold vs. Leasehold: Most properties in Jordan are freehold (you own the property outright). Some areas, however, may have leasehold agreements.
Some of the best Freehold Areas to consider in Jordan
- Amman: Being ideal for both living and investment, the capital city offers a mix of modern apartments, villas as well as commercial space.
- Aqaba: A beautiful coastal city with a combination of excellent investment potential coupled with beachfront properties.
- Dead Sea Region: Excellent for both high end development and resort-style living.
- Irbid & Zarqa: Provide residential properties which while affordable, offer growing demand and potential appreciation.
Can Foreigners Buy Property in Jordan? Rules and Approvals Explained
While they definitely can, some requirements alongside obtaining approval from the Ministry of Interior must be taken into consideration:
- Size and Type Restrictions: Limits on the size and type of property foreigners can own, may be imposed by the government.
- Investment Benefits: Property ownership in Jordan can open doors to bot business opportunities and long term residency.
Why You Need a Real Estate Lawyer in Jordan
Considering the complexities involved in navigating the Real Estate market in Jordan, a Real estate lawyer can be beneficial in the following ways:
- Verifying property ownership and title deeds.
- Handling legal paperwork and prevent potential disputes
- Ensuring adherence to Jordanian real estate laws.
Verifying Property Title and Ownership
Before you sign anything, make sure to confirm the legal status of the property:
- Requesting a title deed from the Department of Land and Survey.
- Checking for any existing mortgages or legal disputes related to the property.
- Ensuring that the seller has full legal rights to transfer ownership.
Signing a Preliminary Sale Agreement
Once you’ve completed due diligence, the next step is signing a preliminary sale agreemen – a document outlining the following:
- Purchase price agreed upon.
- Payment terms & conditions
- Timeline for Payment Transfer
- Any penalties associated with withdrawal to be incurred.
This contract secures the deal while final legal approvals and payments are processed.
ObtainING Government Approvals
In addition to obtaining approval from the Ministry of Interior, municipal authorities may need to grant permits before the sale is finalized depending on the property’s location and type.
Paying the Required Fees and Taxes
As the financial aspects of buying property cannot be neglected, buyers in Jordan must pay:
- Property Registration Fee: Around 9% of the property’s declared value.
- Stamp Duty: Based on the property type and value.
- Legal Fees: Typically, 1-2% of the purchase price, covering lawyer and notary fees.
Finalizing Sale and Transfer Ownership
As the last step, this involves official ownership transfer at the Department of Land and Survey, involving:
- Full Payment is made by the buyer.
- Government records are updated with the new ownership details.
- Official Title Deed is received by the buyer, thereby marking the completion of the transaction.
Mortgage and Financing Options for Buying Property in Jordan
- If you require financial assistance, Jordan offers mortgage options through banks and financial institutions. Key factors include:
- Eligibility Requirements: Income, credit score, and residency status are closely evaluated by Banks.
- Loan-to-Value Ratio: Up to 80% financing is offered by most Banks.
- Interest Rates: Vary based on market conditions and lender policies.
- Repayment Period: Ranging from 5 to 25 years, depending on the loan agreement.
Key Factors to Consider Before Buying Property in Jordan
- Location Matters: Selecting an area aligning with your lifestyle and investment goals.
- Market Trends: Staying informed about property price trends and future appreciation potential.
- Legal Compliance: Ensuring 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
While buying property in Jordan is an exciting opportunity, you should never overlook understanding the legal steps involved in making a safe and informed investment. Regardless of the property type you are seeking, ensuring legal compliance will protect your interests.
For Jordanian Expats, the real estate market offers excellent investment opportunities and with the right legal guidance, you can ensure a smooth experience.