Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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Release of mortgage and return of the title document

Release of mortgage and return of the title document

release of mortgage It means that the collateral is released from the mortgage. In real estate transactions, the seller may have pledged to pay the bank debt or mortgagee's claim and release the document for official transfer, but refuse to do so.

Before filing a lawsuit, it must be determined who is the mortgagee and mortgagee, how much and in what condition the debt is, who is responsible for the contractual obligationrelease of mortgage and whether the official transfer of the property should also be demanded at the same time.

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What are release of mortgage and return of the title document?

A mortgage is a contract whereby the debtor gives the financial asset to the creditor as collateral. Based on the articles 771 and Iranian Civil Code («قانون مدنی»),, the collateral is the same as the debt and the actions against the mortgagee's rights are limited. After the debt is paid or the legal cause is fulfilled,, the release of the collateral and the removal of the mortgage can be claimed.

Statutory basis: Article 793 Iranian Civil Code («قانون مدنی») restricts possessions contrary to the mortgagee's right; therefore, the formal transfer of the mortgaged property often requires the assignment of the mortgagee's right.

Who must arrange the release of mortgage?

The response depends on the contract and the religious relationship. Sometimes the seller is obliged to settle the bank debt, Sometimes the buyer pays part of the price directly to the mortgagee and sometimes a third party is the mortgagee. The determination of the litigants must be made according to these relationships.

Release of mortgage and return of the title document

Usual stages of review and follow-up

Reviewing the instrument and contract

The mortgage clause, The seller's obligations and payment terms are reviewed.

Obtaining a statement of the outstanding debt

The status of the debt and the conditions of the mortgagee or bank are determined.

Claim for performance of an obligation

A declaration or claim of obligation to release of mortgage is submitted and, if necessary, a document is prepared.

Removal of the encumbrance and transfer

After the settlement or execution of the judgment,, the mortgage is removed and the document is released.

Connection with execution of an official title deed

If the ultimate purpose is to transfer the property, merely release of mortgage may not be sufficient and the request of action to compel execution of an official title deed must also be presented. Also, in some cases, the presence of the mortgagee or the bank in the lawsuit is necessary for the enforceability of the judgment.

Related topics

Iranian property disputes

Return to the comprehensive property-law services page

action to compel execution of an official title deed

Official transfer of property and removal of registration obstacles

action to recover possession based on established ownership (khalʿ-e yad)

Ending unauthorized possession on the basis of established ownership

  • Iranian Civil Code («قانون مدنی»)

  • Iranian Registration of Deeds and Properties Act («قانون ثبت اسناد و املاک»)

  • Iranian Code of Civil Procedure («قانون آیین دادرسی دادگاه‌های عمومی و انقلاب در امور مدنی»)

This list, shows the main provisions related to the subject of the page. The governing law and subsequent amendments must be adapted to the time of occurrence, of the subject and the situation of each case.

The official text and latest amendments of the laws are available at National Information Database of Laws and Regulations of the Country is available to view.

Frequently asked questions

claimant must prove its ownership in an acceptable way. In registered properties, official or authentic instrument under Iranian law ownership plays a central role.
action to recover possession based on established ownership (khalʿ-e yad) It is brought against an occupant who is in possession of the property without permission; eviction is usually when the occupation was initially authorized by a contract such as a lease and then continued without permission.
In action to recover possession based on established ownership (khalʿ-e yad), the main focus is on proving ownership; in unlawful dispossession legal,, pre-possession claimant and the right to possess civil defendant and its aggression are important.
Partner seizure in co-owned property has special rules. The possibility of filing a lawsuit and the method of executing the judgment must be examined according to the common share, permission of other partners and the type of seizure.
If the conditions exist, the claim for reasonable compensation for use possession days can be raised together or separately, and usually its assessment requires an expert.
Since the dispute is related to immovable property,, in principle, court the place of occurrence of the property is the competent court; the exact jurisdiction is examined according to the situation and demands of the case.
First, the facility agreement, the amount of debt, the obligation of the responsible person and the conditions of the bank must be examined. release of mortgage It may be followed up by settling, the obligation or, if the obligated person refuses, by legal action.
If the seller has committed to transferring the property free of mortgage, the terms of the contract and the status of the debt should be examined and, where appropriate, the obligation to release of mortgage be raised along with the requirements for a formal transfer.

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