Transfer of Property Act at Jordan
In Jordan, property laws, including the transfer of property, are governed by Jordanian Civil Code (Law No. 43 of 1976), rather than a specific Transfer of Property Act as seen in some common law jurisdictions like India. The Jordanian Civil Code includes provisions concerning the transfer of property, property rights, ownership, and the conditions under which property can be transferred, including immovable property (real estate).
The transfer of property in Jordan is generally governed by the principles of contract law and is subject to formal procedures for registration and payment of applicable taxes.
Key Aspects of Property Transfer Law in Jordan
1. Transfer of Real Property (Immovable Property)
The transfer of real property in Jordan is primarily governed by contract law and property law under the Jordanian Civil Code. The key aspects of transferring property include:
Agreement to Sell: The sale of property begins with an agreement between the buyer and the seller. The agreement specifies the property, the sale price, and any other conditions for the transfer. The contract is typically in writing and must contain the following details:
Identification of the parties involved (buyer and seller).
A description of the property being transferred.
The purchase price and payment terms.
Date of transfer.
Execution of the Sale Contract: The formal contract for the sale must be signed by both parties. The notarization of the agreement is not required for validity, but it is often recommended to ensure legal enforceability.
2. Registration of Property Transfer
A critical aspect of property transfers in Jordan is the registration of the deed. For the transfer of ownership to be legally effective, it must be recorded in the Land Registry (Department of Land and Survey) under the Ministry of Justice.
Land Registry: The property title must be registered in the name of the buyer to finalize the transfer of ownership. This procedure ensures that the transfer is publicly recognized and protected against future disputes or claims.
Transfer of Title: Once the sale contract is signed, the buyer and seller must proceed to the Land Department for the official registration of the transaction. The following documents are typically required for registration:
The sale contract signed by both parties.
Proof of identity of both parties (e.g., national ID cards or passports).
Payment receipt of stamp duty and any applicable taxes.
Proof of ownership by the seller (e.g., previous property deed).
Land Title Certificate: After successful registration, a new land title certificate is issued in the name of the buyer, completing the property transfer process.
3. Payment of Taxes and Fees
Property transactions in Jordan are subject to various taxes and fees, which include:
Transfer Fees: The buyer is typically responsible for paying property transfer fees to the government. The fee is calculated based on the property value and can vary depending on the type of property (residential or commercial).
Stamp Duty: There is a stamp duty that must be paid on the sale contract. The rate of stamp duty is generally based on the transaction value.
Municipal Taxes: The seller may also need to settle municipal taxes before the property transfer is completed. These taxes are based on the assessed value of the property and must be paid in full.
4. Mortgages and Encumbrances
Mortgages: If the property being transferred has a mortgage or other encumbrances (such as a lien), these must be settled before the property transfer can be completed. The buyer will need to ensure that any outstanding debts related to the property are cleared as part of the transfer process.
Mortgage Registration: Mortgages in Jordan are also registered with the Land Registry. A property with an existing mortgage may require clearance certificates or evidence that the mortgage has been satisfied before it can be transferred.
5. Leases and Tenancy Rights
In Jordan, leases or rental agreements may be in place on a property at the time of transfer. These tenancy rights need to be dealt with in the sale agreement. The following considerations apply:
Transfer of Lease: A lease agreement may continue even after the property is sold, and the new owner will inherit the rights and obligations under the lease unless the lease specifies otherwise.
Termination of Lease: If the property is sold and the buyer intends to terminate the lease, the terms of the lease agreement and local laws regarding tenant protection must be followed.
6. Transfer of Property through Inheritance
When property is transferred through inheritance, Jordan follows the principles set out in the Jordanian Civil Code under inheritance law. The process of inheriting property involves:
Probate: The heirs must go through a legal process known as probate to claim the property. This involves proving the validity of the will (if one exists) or following the rules of Islamic inheritance law (which applies unless there is a valid will stating otherwise).
Distribution of Assets: Inheritance laws in Jordan distribute property among heirs according to the Shariah law of inheritance (for Muslims), but civil law governs inheritance for non-Muslims.
7. Foreign Ownership
Foreign nationals are permitted to own property in Jordan, but there are certain restrictions, particularly regarding land ownership:
Land Ownership: Foreigners are generally prohibited from owning land, especially agricultural land, unless they meet certain criteria or are investing in the country. Foreigners may be allowed to buy land in certain areas, but this typically requires special permission from the Jordanian government.
Real Estate Ownership: Foreigners may purchase real estate (e.g., residential properties) in Jordan under certain conditions, often related to the purpose of the property (for investment or business purposes). Special permission from the Jordan Investment Commission may be required for non-Jordanians to purchase property.
Conclusion
In Jordan, the transfer of property is primarily governed by the Jordanian Civil Code, which sets out the legal framework for property sales, registration, and the payment of taxes. The process typically involves signing a sale contract, registering the property with the Land Registry, and ensuring all fees and taxes are paid. Mortgages and encumbrances must be cleared before transfer, and foreign nationals face restrictions on owning land, though they can purchase certain types of real estate with the right permissions.
Property transfers involving inheritance or leasing are also governed by civil law and Islamic inheritance principles. Legal disputes related to property transfer can be handled by the Jordanian courts, where the parties can seek resolution according to Jordan's civil and commercial laws.
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