Law Update: Real Estate, Construction & Hotels

The regional real estate, construction and hospitality sectors have been turned upside down over the last two years, with Covid-19 bringing these sectors to a halt. The impact of the pandemic remains, however, the resurrection of these vital sectors across the region is a welcome relief because they support the development of modern cities, which in turn have attracted commerce and tourism to the Middle East and North Africa.

This latest edition of Law Update, provides vital insights, updates and commentary on the latest trends taking shape across the real estate, construction, hotels and leisure sectors. The articles within this edition cover a broad range of topics, from what’s next for real estate in Dubai, to commentary on Saudi real estate, a market that is set to become the main bedrock of the region for years ahead. You will find articles on reforming real estate laws in Qatar, foreign investment and ownership in Oman, and mitigating risks on hotel construction projects and the lessons learnt from Covid.

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September 2014
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New Amendments to the Jordan Bar Association Law

New Amendments to the Jordan Bar Association Law

Ala Hadidi

a.hadidi@tamimi.com

September 2014

Lawyers can either be engaged on a time spent basis, on a case by case basis, or on retainer for a specific period of time.

When it comes to retainer agreements, these usually include providing clients with general legal advice and legal consultancy regarding issues in a specific jurisdiction for a period of one year. The legal services provided by virtue of said retainer agreements do not usually include translations, litigation and arbitration cases, transactional work or special projects.

Additionally, it is important to note that in some jurisdiction, as is the case in Jordan, local laws and regulations oblige companies with a certain set capital to retain lawyers on an annual basis.

Amendment Law

The Jordan Bar Association has recently amended its law no. 11 of 1972, thereby reducing the minimum capital for companies in relation to retaining lawyers. Accordingly and pursuant to the amending law no. 25 of 2014, the following companies are now under an obligation to retain a lawyer:

Public Shareholding companies regardless of the capital.
Private Shareholding Companies noting that pursuant to the previous law, private shareholding companies with a minimum capital of 150,000JOD (Jordanian Dinar. At the time of writing this article, 1JOD = US$1.41) were obliged to retain a lawyer.
Limited Liability Companies with a capital not less than 20,000JOD are now obliged to retain a lawyer noting that pursuant to the previous law; only Limited Liability Companies with a minimum capital of 150,000JOD were obliged to retain a lawyer.
Foreign companies, branches, regional and representation offices, companies registered in the Development zones, free zones, Aqaba Special Economic Zone (ASEZ), Petra Development and Tourism Authority, exempt and nonprofit companies are now all obliged to retain a lawyer regardless of their capital.
Any other companies with a minimum capital of 50,000JOD.

Further, the abovementioned amendment to the law continues to provide that the fine imposed on a company for failing to retain a lawyer is now increased to 5JOD per day which shall be effective 3 months from the date the law is published in the official gazette.

Comment

Even though this amendment to the law aims to generate more business for the legal community, it is likely to cause difficulties to lawyers, due to the fact that there is a limit of five companies that can be registered under the name of each lawyer. Accordingly, this will trigger a minimum fees which all lawyers will apply for this purpose.