Understanding Land Classification in Jordan
Before purchasing land in Jordan, it is essential to understand the country's land classification system. Jordanian land is divided into several categories: residential (sakani), commercial (tijari), agricultural (zira'i), industrial (sina'i), and mixed-use. Each classification determines what can be built on the land, the allowable building coefficient (nisbat al-bina'), and the land's market value. Verifying a plot's classification through the Greater Amman Municipality (GAM) or relevant municipality is the first step of any land purchase.
Step 1: Verify the Title Deed (Kushan)
The title deed (kushan) is the foundational document of any land transaction in Jordan. It records the owner's name, plot dimensions, location, classification, and any encumbrances (mortgages, liens, or restrictions). Before any agreement is signed, request a certified copy of the kushan from the Land Registry Department (Dairat Tasjeel Al-Aradi). Verify that the seller's name matches the registered owner and that no outstanding obligations exist against the property.
Step 2: Conduct Physical Due Diligence
Visit the land and verify its boundaries physically against the kushan dimensions. Engage a licensed surveyor to confirm exact measurements and identify any encroachments. Check road access, availability of utilities (water, electricity, telecom), and proximity to infrastructure. Assess topography for any building challenges such as steep grades or rock formations that would increase construction costs.
Step 3: Secure Legal Representation
Engaging a registered Jordanian lawyer is strongly recommended for all land transactions. A qualified attorney will review the sale agreement, verify encumbrance-free status, ensure compliance with the Foreign Investment Law (if applicable), and manage the registration process. Legal fees typically range from 0.5% to 1.5% of the transaction value. Dwaik Real Estate works closely with our partner legal advisory to provide end-to-end transaction support.
Step 4: Negotiate and Execute the Sale Agreement
The sale agreement (aqd al-bai') must specify the agreed price, payment schedule, conditions precedent, and transfer timeline. A deposit (typically 10% of purchase price) is paid at signing to secure the transaction. The agreement should include representations about the land's freedom from encumbrances, accurate area measurements, and the seller's legal capacity to sell.
Step 5: Pay Taxes and Complete Registration
Land transfer in Jordan requires payment of the Land Transfer Tax (daribat naqil al-milkiyya) — currently 9% of the assessed land value (split between buyer and seller), plus registration fees of approximately 0.3–0.6%. Both parties attend the Land Registry Department to execute the transfer. The new title deed (kushan) is issued in the buyer's name following payment of all fees and taxes.
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