Whether you are a tenant or owner of a real estate facility, it is important to know your rights and obligations to avoid any future complications. Therefore, you must be familiar with the provisions of real estate leasing in Jordan, which include all the essential details for anyone wishing to rent or lease a facility, whether residential or commercial.
Real estate rental provisions in Jordan include sundry main aspects related to the tenant's and property owner’s rights and obligations. In addition, they include the lease term and rent, as well as the terms for terminating the contract. The contract must be documented to avoid potential disputes.
In this guide, we will go over the real estate rental provisions in Jordan, which include all the important terms and details.
What is a Lease?
A lease is defined as an agreement or legal document by which a landlord obligates a tenant to use a specific property for a specified period of time, in exchange for a specified fee. The lease also includes the agreed-upon terms and a warranty, if any. In rental cases, the lease is between the landlord and the tenant. It is preferable for the lease to be in writing, as it is considered a legal document that can be used in court in the event of any disputes.
Based on the definition, a lease includes the following:
Landlord
Tenant
Property details (residential or commercial)
A specific period of time
The agreed fees
Terms and conditions
Warranty, if applicable
Characteristics of a Lease Contract
Real estate rental provisions state that each lease contract must be as follows:
1. Consensual Contract
Jordanian law does not require a specific formula for concluding a lease contract. It is sufficient for both parties to agree on the contract terms, whether verbally or in writing. However, it is highly recommended to write the contract and have it officially notarized to protect rights and clarify obligations.
2. Term Contract
A lease is for a specific period of time, such as one year, more, or less. The beginning and end of the contract must be clearly defined. If the term is not specified, the contract may be considered monthly, and either party may terminate it with prior notice.
3. Binding Contract
One of the provisions of a real estate lease is that once the contract is signed, both parties are obligated to implement its terms. The landlord is obligated to enable the tenant to use the property, and the tenant is obligated to pay the rent and not violate the terms of use
4. Compensatory Contract
The contract is based on exchange: the landlord grants the use of the property, and the tenant is obligated to pay the rent. This exchange is the essence of the relationship and distinguishes a lease from a gift or loan.
5. Renewable
A lease can be automatically renewed if both parties continue the relationship after the expiration of the term without signing a new contract, unless there is an explicit provision prohibiting this. It can also be renewed on new terms agreed upon by both parties.
Jordanian Landlord and Tenant Law
Under the Constitution, the Landlord and Tenant Law No. 11 of 1994 and its amendments regulate the relationship between the two parties. It aims to create a legal balance that preserves the owner's right to their property and the tenant's right to stability and housing. The most prominent provisions of the law include:
-Regulation of contract term: The law requires that the term be clearly stated. Contracts with an indefinite duration are treated as contracts that can be terminated with notice.
-Rent: The rent and payment method must be specified (monthly, annual, or in installments), and it is prohibited to modify it during the contract's term unless agreed upon.
-Eviction mechanism: The landlord does not have the right to arbitrarily evict the tenant; there must be a legal reason, such as non-payment or expiration of the term.
-Determination of use: The lease must be specified whether it is residential or commercial, as the provisions differ between the two types.
-Disputes: Either party is permitted to resort to the Magistrate Court in the event of a dispute, and these cases are heard relatively quickly due to their social and economic importance.
Landlord and Tenant’s Rights and Duties
Real estate rental provisions include the rights and obligations of the tenant and the property owner, which are as follows:
Landlord's Rights:
-To receive rent on time and to pursue legal action if the tenant is late in paying.
-To reclaim the property after the contract expires, or if the tenant violates the terms of use or causes damage.
-To refuse renewal at the end of the contract, provided the tenant has been notified in a timely manner and in accordance with the law.
Landlord's Duties:
-To deliver the property in good condition and suitable for the agreed-upon purpose (residential, commercial, etc.).
-To carry out necessary maintenance, such as major electrical and plumbing repairs.
-To refrain from unilaterally changing the terms of the contract, and any amendment requires the tenant's consent.
Tenant Rights:
-Full use of the property under the agreed-upon terms, without undue interference from the landlord.
-Maintenance by the landlord in the event of malfunctions or problems not due to misuse, such as water leaks or damage to the infrastructure.
-Not to evict without a legal reason. The law protects the tenant from arbitrary eviction and requires a legal notice and clear legal procedures.
Tenant Duties:
Pay rent within the agreed-upon dates; otherwise, they may face an eviction notice.
Use the property for its authorized purpose and not convert it to a commercial activity if the contract is for residential use, or vice versa.
Preserve the property and refrain from making any alterations or damages without consulting the landlord.
FAQs
1. Is it necessary to notarize a lease contract?
The law does not require notarizing the contract, but it is a smart step that preserves rights and facilitates legal proceedings later in the event of a dispute.
2. What are the procedures to be followed when the tenant fails to pay?
A formal legal notice is issued demanding payment within a specified period (usually 15 days). If the tenant fails to comply, an eviction lawsuit can be filed with the court.
3. Is it permissible to terminate the contract before its expiration date?
Yes, if there is a legal reason or if both parties agree to early termination. Otherwise, the withdrawing party may be required to pay compensation to the other party.
4. Are the lease terms for commercial properties different from those for residential properties?
Yes, they differ in terms of term, renewal mechanism, and eviction rights. Commercial contracts are often more flexible, but they require a precise definition of use.