How high are realtors´ and lawyers´ fees in the Jordan? What about other property purchase costs?
|Real Estate Agent´s Fee|| 2% (+ 16% GST)
2% (+ 16% GST)
|Costs paid by buyer||5.62% - 10.62%|
|Costs paid by seller||2.32%|
|ROUNDTRIP TRANSACTION COSTS||7.94% - 12.94%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Jordan?
Foreigners are allowed to buy property in Jordan, provided Jordan and the buyer´s country of residence have a reciprocal relationship, and that the approval of the Cabinet (Council of Ministers) is obtained. Foreigners can only sell the property five years from acquisition. Most properties for rent and for sale can be found in Amman, Jordan´s capital city.
A real estate agent is needed when purchasing property in Jordan. However, legal and other procedures needed for the transaction can be done without the services of a lawyer.
While prior approval from the Cabinet is needed, there are other Government agencies involved in the registration of the property. These authorities are: the Lands and Surveys Department and/or the Minister of Finance.
An official sale form is available from the Lands and Surveys Department. This is acquired together with the cadastral map and certificate of ownership. A Tax Clearance is also obtained from the Ministry of Finance.
The registration fee of 9% (unequally shared by the buyer and the seller) is paid to transfer ownership of the title after closing the transaction.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property - lawyers´ fees, notaries´ fees, registration fees, taxes, agents´ fees, etc.
Jordan uses the Jordanian Dinar (JOD) . The exchange rate as of 14 Nov 2007: US$1 = JOD 0.71330. Property value is US$250,000, approximately JOD 180,000 (178,325).
A 0.6% stamp duty is imposed on sales contracts. It must be paid within one month after the conclusion of the contract. For late paymets, there is a fine equal to three times the amount of duty payable.
For property transfers, the government imposes a 10% tax, 4% paid by the seller and 6% by the buyer.