Preemption in Jordanian Law

18-Aug-2024

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Preemption

Preemption is a right that has been known among Arabs since ancient times among neighbors, partners, and friends. If one of them wanted to sell their property, the neighbor, partner, or friend would have the right to claim it before anyone else, making them more entitled to it than someone farther away. As a result, it was named preemption, and the claimant was called a preemptor.

Today, we are discussing the right of preemption in real estate under Jordanian law and the conditions and procedures associated with it.

What is the Right of Preemption in Jordanian Law?

Preemption is a legal right based on a contractual foundation, linked to real estate ownership law because the contract was made on a property subject to the right of preemption.

In Jordanian law, preemption is the right to acquire the sold property or part of it, even forcibly from the buyer, based on the price or expenses. This means it is the right granted by law to a person due to their legal status, giving them priority in purchasing and owning the preempted property. This legal status may result from partnership, proximity, or inheritance.

Preemption among the General Jordanian Public

As commonly understood among the general Jordanian public, preemption is the right to object to the sale of part of a property, regardless of the type of property. To simplify the concept of preemption: let's assume "S," "X," and "Y" are partners in a piece of land, and this land is registered under a single title deed. Partner "S" sells his share in the land to a fourth party named "A." As a result, "A" becomes a partner with "X" and "Y" in this land. Now, this sale triggers the right of objection for "X" and "Y" to file a preemption claim to purchase this share, which has now become "A's" property, under specific conditions.

Elements of Preemption and Persons Entitled to Preemption

Preemption is only complete if the following three elements are present:

● Preemptor: The party entitled to preemption, who could be an heir, a partner, or a neighbor.
● Preempted Against: The buyer to whom the property was transferred.
● Preempted Property: The property that the preemptor acquires through preemption.

Persons Entitled to Preemption According to Their Ranks:

● Partner: Those who share a property, regardless of the share percentage, as long as the property has a single title deed listing the partners' names.
● Mixed Owner: Those who share a right in the sold property.
● Neighbor: The person adjacent to the property.

Note: The mixed owner is someone who holds a right of easement in the property, and the shares cannot be distinguished. The mixed owner could be anyone, like a friend, sibling, neighbor, cousin, or others.

Priority in the Right of Preemption

The right of preemption primarily belongs to the partner. If the partner claims it, neither the mixed owner nor the neighbor has the right to preemption. The second level of preemption rights belongs to the mixed owner. If they claim it, the neighbor has no right to claim.

Preemption in Real Estate

The right of preemption in Jordanian law is indivisible, meaning preemption cannot be divided in a single property sale. The preemptor must claim preemption for the entire property or waive their share based on the contract. However, division of the property might be allowed in one case: if there are multiple buyers and a single seller, in which case the preemptor can purchase a part from one of the buyers.

Conditions Required in the Sold Property to Consider the Right of Preemption

●The sold property must be owned or transferred under a property allocation ruling according to Jordanian law.
●The preempted property must be owned by the preemptor at the time of purchasing the preempted property.
●The sale contract for the property must be official and valid, and the right of preemption is established after the sale and transfer of ownership, not before.
●In property gifts, it must be conditional on compensation, as it is considered a sale and subject to the right of preemption.

As for agricultural lands, they are subject to preemption as real estate allocation, which refers to movable assets placed for the service, exploitation, and development of the property, which take the right of preemption by analogy, like agricultural machinery, fertilizers prepared for cultivation, seeds, and livestock.

Preemption in Inheritance?

The right of preemption is not nullified by the death of the preemptor; the right passes to the preemptor's heirs in what was due to their predecessor through preemption.

In cases of multiple heirs, preemption is equally divided among them, and each heir must claim preemption for the entire sold property as there is no solidarity among the preemptors in the claim. However, if there are multiple buyers and a single seller, the preemptor has the right to revoke the sale and file a preemption claim for their share, equal to the other preemptors.

What Are the Cases That Nullify the Right of Preemption?

● If the property is sold at a public auction according to specific procedures established by Jordanian law.
● If the sale occurs between these individuals: ascendants and descendants, between spouses, between relatives up to the fourth degree, and between in-laws up to the second degree.
● If the preemptor explicitly or implicitly waives their right to preemption.

Regarding properties subject to Jordanian law procedures, Homes Jordan has discussed various topics through the following articles:

Partitioning 2024
Transfer, Waiver, and Recommendation 2024
Public Auction in Jordan 2024

At Homes Jordan, we ensure the legal verification of properties and their freedom from any legal loopholes that could hinder sale and purchase transactions. We do not only check property specifications but also comprehensively consider all aspects.