Obtain a copy of the ownership deed from the Land Registry
Agency: Land Registry
The parties apply for a copy of ownership deeds. The deed details provide the location, number, and size of the plot, who is registered owner, whether there are any disputes over ownership or pending legal cases. Importantly there is a compulsory government order on the property or, for example, whether any roads are planned through the area.
The procedure to obtain the Real Estate Certificate is a straight forward one which only requires submission of the request, and the certificate is immediately issued thereafter. Starting in 2016, there is a possibility to obtain the certificate online by going to http://www.lrc.gov.lb/en/content/viewing-title-register.
Time and cost: 1 day, LBP 10,000
Obtain an official cadastral map and a location map of the property
Agency: Cadastre Administration (Da’irat al Massaha)
If the area is not specified in the real estate certificate and in the title deed, which is often the case, an official cadastral map and a location map of the property must be obtained from the cadastre administration (in Arabic “Dairat al Massaha”).
Time and cost: 1 day, LBP 20,000
Obtain an urban plan certificate from the Urban Planning Authority and the Municipality
Agency: Urban Planning Authority and Municipality
Parties obtain an urban plan certificate from the Urban Planning Authority and the Municipality. This is not strictly required by the law, but it is usually requested by the buyer in order to make sure that no special easement or expropriation is planned on the property that he intends to purchase.
Time and cost: 10 days, LBP 6,000
Obtain a Municipal Tax Clearance (Bara’et Zimma)
Agency: Municipality
Obtain clearance from the Municipality to make sure that municipal taxes prior to the sale agreement have been paid. This is not required by law, but it is usually requested by the buyer.
Time and cost: 3 days, LBP 8,000
Preparation of the sale agreement by a lawyer
Agency: Lawyer
An attorney prepares the sale agreement on an official form. The participation of a lawyer is not mandatory, but it is preferred to avoid any mistakes. The sale contract is often drafted by the notary public or by a qualified facilitator.
However, for complex and delicate real estate transactions where either or both parties need to protect their rights, the contract is usually negotiated and drafted by both parties’ attorneys.
The Beirut Bar Association on its decision of April 26th, 2012 has set a minimum fee of LBP 1,500,000 for the drafting of a contract. Such minimum fee shall be subject to an increase taking into consideration the contract’s value and importance.
Time and cost: 2 days, LBP 1,500,000 (LBP 1,500,000 (minimum set by the Beirut Bar Association))
Obtain an official estimate of the property rental value from the Tax Authority
Agency: Ministry of Finance
An official estimate of the rental value of the property is requested together with a tax discharge (clearance). The Tax Authority at the Ministry of Finance orders an inspection of the property by a controller to obtain an official estimate of the rental value of the property. A copy of the sale agreement should be submitted to the Ministry of Finance to obtain the official estimate of the rental value.
Time and cost: 10 days, LBP 5,000
Apply for registration at the Land Registry
Agency: Land Registry
The contract, together with the documentation, is presented, either a) directly to the Land Registry officer before whom the contract is signed and then the property is registered, or b) to the notary public before whom the contract is signed and then both the contract and the documentation shall be presented to the Land Registry for registration of title.
If it is presented to the Land Registry, all taxes and duties are paid at the tax authority cashier, which is located at the same building than the Land Registry.
The Contract is presented to the Assistant Land Registrar, then it will go through one or two officers before it reaches the Land Registrar who would:
- Either accept the contract if he/she agrees on the price that was set by the parties and finds that there are no irregularities in the documents, in which case the contract shall be immediately registered, and thereafter the new deed will be delivered to the buyer; or
- Refuse to register the contract until the price is amended (i.e. increased) or the irregularities in the documentation is rectified, in which case the Land Registrar’s request shall be satisfied and the contract is to be presented once again for review and acceptance.
It is only when the Land Registrar approves the signed contract and accepts to record it that the title to the property is transferred to the Buyer.
Then, once the transaction is completed, the new title deed in the name of the Buyer is delivered in about 5-7 business days. As per the express and clear provisions of the law, the buyer acquires full ownership only when the sale contract is recorded (i.e. after its acceptance) in the Land Registry, regardless of when the new deed is delivered to him.
In case the contract is delivered for signing to the notary public, then both the contract and the documentation shall be presented to the Land Registry for registration of title.
All taxes and duties are paid directly at the notary public’s office, except for the stamp duty that is paid at the Ministry of Finance if its amount exceeds LBP 200,000
The documentation shall include:
- Title deed, as proof of ownership (held by seller)
- Real Estate Certificate (obtained in Procedure 1)
- Official cadastral map and location certificate of the property (obtained in Procedure 2)
- Official estimate of rental value of the property (obtained in Procedure 5)
- Municipal tax clearance (obtained in Procedure 6)
- Sale agreement (prepared in Procedure 7)
Time and cost: 10 days, LBP 34,701,000
- Sale transfer tax 5%
- Flat taxes (deed fee 8,000; contract fee 8,000 seller; contract fee 8,000 buyer)
- New deed fee 50,000
- Contract stamp fee 10,000
- Deed stamp fee 5,000
- Municipality fee 5% (of the sale transfer tax + Flat taxes)
- Lawyers syndicate fee 1 per thousand of the amount
- Stamp fee 4 per thousand of the amount
Update the property record at the Cadaster
Agency: Cadaster
Once the registration at the land registry, the new owner must update the record at the Cadaster to reflect the new name. This is not yet done automatically.
Time and cost: 3 days, no charge
