Obtain a sale form, certificate of ownership and a cadastral map from the Land and Survey Directorate
Agency: Land and Survey Directorate
Prior to proceeding with the sale, the buyer (being a corporate entity) must first obtain certain approvals/non-objections from the relevant authorities. A standard form purchase application is completed by the person duly authorized by the buyer. The sale form is completed according to the information provided by the parties concerned including names and property information. This application form, which is a form of sale agreement, is then submitted to the Investment Department at the Department of Land and Survey. This form will be checked and stamped. At the same time, a certified copy of the certificate of ownership and the cadastral map will be given as well.
Time and cost: 1 day, JOD 5 (JOD 1.5 for property deed, JOD 3.5 for land map)
Obtain the Zoning map and certification of the official sale form
Agency: Greater Amman Municipality
The official form of sale previously obtained from the Land and Survey Directorate must also be stamped by the Municipality of Greater Amman. By stamping this official sale form, this meant that the property being sold is not in contravention of any relevant law or regulation. In case the property was in contravention, a fine must be paid and the contravention removed. The documentation shall include: • The company’s statute Certificate of Property and the Cadastral map (obtained in Procedure 1) • The stamped Official Sale Form (obtained in Procedure 1).
The zoning map is also obtained at the same time.
Time and cost: 3 days, JOD 10
Obtain building tax clearance from the relevant Municipality
Agency: Greater Amman Municipality
Once the Sale form has been stamped by the Municipality and the Zoning map obtained, the parties must now obtain a tax clearance certificate stating that there are no outstanding taxes. In case the building has unpaid taxes, they should be paid or else the sale cannot continue. This tax clearance is obtained from another department within the Municipality.
Time and cost: 1 day, no charge
Submit the file to the Land Department to request the transfer of ownership of the property to the buyer
Agency: Land Registration Department
The duly stamped sale form is filed for registration at the competent Land Department. The Land department does not take the mentioned price of sale on its face value, but forwards the whole file to the division of “area statistics”, which assesses the true value of the property. The sales fees are paid on the assessment of the value if the declared sale price is less than the assessment. If the declared sale price is higher, then the sale fees would be paid on the declared sale price.
The Land and Survey Directorate requests a non-objection from the Minister of Finance soliciting his approval on the sale.
The application should be accompanied by the:
- Property deed;
- Cadastral map;
- Zoning map;
- Tax clearance letter;
- The authorized signatories and registration certificates authorizing the representatives to sign on behalf of the parties;
- The Company’s statute must clearly state that the company can own lands, even if owning lands is not the company’s main objective and even if the company tends to own land to achieve other stated objectives in its founding statutes.
Many lawyers always include, when drafting the company’s statutes, the right to own land. In case the company does not have this objective clearly stated in its statutes, an extraordinary session of shareholders should be invited to amend the company’s regime for this purpose. The new statutes had to be taken to the Ministry of Trade and Industry to obtain the final clearance (simple administrative Procedure), but according to recent practice, this is no longer required by the Land Registry.
Time and cost: 10 days, no charge
Pay fees and conduct sale hearing session at Head of Land Registration Department
Agency: Land Registration Department
After the cadastral value of the property is determined, the registration fee must be paid. The fee was reduced from 10% to the current values on May 25 2009, by a decision of the Council of Ministers in a letter addressed from the General Manager of Lands and Survey Department/ Ministry of Finance (LSD) to the Ministry of Planning and International Cooperation (MoP). First time purchases of properties under 150 meters by a Real Estate or Housing Project are fully exempt of registration fees. Properties over 150 meters will be taxed for the amount exceeding the 150 meters at 8%. First time property purchases by an individual, however, will be taxed at 3% when under 150 meters and taxed fully at 8% when greater than 150 meters. Any resale of property purchased either by a Real Estate Company or an individual will be taxed fully at 9%. The registration fee is paid at the Lands Department. The sale agreement is presented to the chairman of the land and property department and signed by the representatives of the two parties. The parties signing the agreement should be duly allowed to represent and engage the company. Two witnesses, other than the chairman, must also be present during the signing ceremony. The name of the seller will be deleted from the department’s files and the new owner’s name will be recorded.
Time and cost: 1 day, JOD 13,494.58 (9% property value (5% purchase registration fee [paid by seller] + 4% land sale tax [paid by buyer]))
Update the property record at the Municipality
Agency: Greater Amman Municipality
The property record must be updated at the Municipality by the new owner. This is not an automatic process.
Time and cost: 1 day, already paid in Procedure 6
