File application at the Registration Office
Agency: Property Registry, Real Estate Authority (دائرة المصالح العقارية)
The application for registration is filed at the Registration Office. It is possible to use the services of a lawyer to prepare the sales contract for commercial properties, charging about USD 500-700. If the lawyer accompanies the client to the Registration Office, the client will be charged an additional USD 60-80 per hour. The lawyer will verify the rightful ownership of the property and check if the property has no encumbrances.
Since August 2015, a security clearance is required for registering a transfer. The land registry submits the documents to the National Security Agency. Once the security clearance is granted, the registry proceeds with the transfer.
Time and cost: 30 days, USD 5 (USD 5 Application fee)
Obtain property tax clearance from the Ministry of Finance
Agency: Tax Department of the Ministry of Finance
The seller should obtain proof of payment on all taxes related to the property from the Tax Department at the Ministry of Finance. The transfer tax (20-35% of the property value) is paid at the Ministry of Finance, and it takes up to one week to obtain the tax clearance due to the non-computerized procedures. It is a common practice that parties sign two agreements. One is a non-disclosed agreement that shows the real value of the property. Usually, sellers do not pay the full amount of transfer tax. They pay only 5% and get a primary declaration from the Ministry of Finance, Tax Department, to transfer the title to the buyer who signs an undertaken that he will pay the outstanding amount to the Ministry of Finance. Note that the taxes are paid on the official value of the property, which may be as little as 1/50 of the market price of the property. However, in this case study, value is equal to selling price.
Time and cost: 3 days, USD 14,244.42
- 13% Transfer tax
- 0.8 % for the Stamp Duty
- 9.867% of the property value for Registration fees
- 3.795% of property value for Local Tax
Payment of registration fees at the Ministry of Finance
Agency: Ministry of Finance
The transfer tax (USD 50), stamp duty (USD 10) and partial registration fees are included in this cost. The registration fees are paid at the Ministry of Finance, and depend on the value of the property. Payment receipts are then to be presented to the Registration Office along with other documents in order to transfer the title of the deed.
Time and cost: 1 day, USD 220 (Between USD 190 and 250)
Present payment receipts of the registration fee at the Registration Office and obtain the title deed
Agency: Property Registry, Real Estate Authority (دائرة المصالح العقارية)
The parties will present the payment receipts of the registration fee at the Registration Office. The registration process continues and the office must approve the transfer and then it will issue the new title deed. The documentation shall include: payment receipts for registration fees (obtained in Procedure 3).
Time and cost: 14 days, USD 55 (Between USD 50 and 60)
