Lower House Passes "Traffic Law Amendment"

Lower House Passes "Traffic Law Amendment"
Lower House Passes "Traffic Law Amendment"
The House of Representatives, in a session held Wednesday presided over by Speaker Mazen Al-Qadi and attended by government officials, passed the Draft Traffic Amendment Law of 2026 by a majority vote.اضافة اعلان

Key Legislative Amendments
The House approved the decision of the Joint Parliamentary Committee (Legal and Public Services) regarding Article 1, adding the phrase "after thirty days" to its enforcement clause. The law will officially go into effect 30 days after its publication in the Official Gazette.

Digitization of Transactions (Article 2)
The approved amendments to Article 2 (modifying Article 7 of the original law) introduce several transformative changes:

Electronic Notarization: Officers at the Licensing Department, who hold the powers of a Notary Public, are now authorized to use electronic, visual, and audio communication means, as well as electronic signatures, to certify vehicle sale and mortgage contracts.

Escrow Account for Payments: A new clause mandates that vehicle ownership transfers and legal transactions will not be documented unless the price is paid through a "Vehicle Sale Price Guarantee Account." This account will be established under a specific regulation to define deposit procedures and disbursement mechanisms.

Non-Electronic Safeguards: The House added a provision ensuring that transactions conducted through non-electronic means remain valid without the requirement of the escrow account, unless the parties agree otherwise.

Management of Impounded Vehicles (Article 3)
The House approved amendments to Article 49 of the original law to address the issue of abandoned impounded vehicles:

Reduction of Holding Period: The period after which the government can sell impounded vehicles at public auction (if unclaimed) has been reduced from 24 months to 12 months (amended from the draft's proposed 6 months).

Notification Requirement: The Committee replaced the requirement of "newspaper announcements" with the direct "notification of the owner."

Proceeds of Sale: Disbursement of funds from sold vehicles to claimants or owners will only occur via final court rulings. The sale of such vehicles will "clear" them of any liens, mortgages, or seizures, with those legal rights then being transferred to the resulting cash price.

Objectives of the Law
The 2026 Traffic Amendment aims to:

Remote Transactions: Enable citizens to complete all vehicle buying and selling procedures, including payment, using electronic means without needing to visit Licensing Department branches.

Rights Protection: Ensure the rights of sellers and buyers through the mandatory escrow account, where funds are transferred to the seller immediately upon completion of the electronic transaction.

Efficiency: Facilitate vehicle financing through various institutions under the new electronic mechanism.

Value Preservation: Grant authorities the power to sell impounded vehicles within one year to prevent the depreciation of the vehicle’s value, thereby protecting the rights of creditors or impounding entities.

This draft was initially referred to the Joint Committee on March 30, 2026, and was approved by the committee with these modifications on April 13, 2026.