mandatory registration of immovable-property transactions in Iran

What is the law of obligation and what stage is it at now?

The Act on Mandatory Official Registration of Immovable Property Transactions was approved by the Islamic Consultative Assembly on 6 Azar 1401 and deemed expedient by the Expediency Discernment Council on 26 Ordibehesht 1403. It created new mechanisms for official registration of important real-estate legal acts, claims based on non-official documents, and the activities of real-estate advisers.

Under the current circumstances, The public announcement of the phased launch of the “system for organizing unregistered property claims” subject of Article 10 was issued in 29 Ordibehesht 1405; But this is not the single origin date for all properties and all deadlines. For land title deeds issued from 1 Farvardin 1396 to 31 Ordibehesht 1405, the date of establishment 1 Khordad 1405 has been announced; for land title deeds issued from that date until the next announcement, the date of establishment is basically the date of issuance of the same document; and for other properties the next public announcement must be checked.

Which transactions are addressed by Article 1?

Article 1 covers a range of legal acts related to immovable property; including the transfer of ownership of the thing,, certain rights of usufruct and easement,, mortgages,, leases of more than two years,, leases subject to possession,, pre-sale of the building and the obligation to perform these acts. The general rule of Article 1, is to register these acts in the electronic document registration system and to provide for a performance guarantee for their non-registration.

• General time rule: The text of Article 1, links the implementation of the main rule to one year after the official launch of the Article 10 system.

• Important exception concerning a cadastral title deed: Under Note 4 to Article 1, for properties receiving a cadastral title deed after the law enters into force, Article 1 applies from the issue date of that deed, even if the Article 10 system has not yet been launched.

• Effect on claims: In cases subject to,, the failure to register a legal act can seriously affect the ability to hear claims and the validity of the relevant evidence; therefore, it is necessary to determine which ruling exactly and from what date a transaction is subject to,.

System of article 10 and the deadline for holders of unofficial documents

Article 10 provides for a mechanism for registering claims and documentation for claims related to ownership of the thing, Ownership of interests for more than two years, usufruct or right of use and easement right immovable property that was created before the system was launched and does not have official or authentic instrument under Iranian law,.

Effect of the law on preliminary sale agreements and private instruments

This law does not mean "the simultaneous annulment of all old agreements". The status of private or non-official instrument depends on the time of creation of the right, the type of legal act, the registration and deed status of the property, the action or inaction in the system of Article 10 and the transitional provisions.

In cases such as action to compel execution of an official title deed, the cancellation of a document, action to recover possession based on established ownership (khalʿ-e yad), registration claims and disputes arising from Iranian real-estate contracts, the chain of documents and dates must first be examined and then the admissibility of the lawsuit or the validity of the documents must be decided.

The role of real-estate agencies and standardized contracts

Article 3 of the law and its regulations, have regulated the access of real estate brokers to the electronic document registration system and the entry of draft contracts. Also, subsequent regulations on uniform contracts and authorized platforms, have created a new technical and legal framework for some transactions.

It is important for the buyer and seller not to consider the mere preparation of the text in the firm as the same as the official transfer of ownership and to clarify the path of official registration and the status of the property document before the main payments,.

Legal sources for this page

This page is based on the revised text of the mandatory registration of immovable-property transactions in Iran, Regulations of Article 3, Implementing Regulations of Article 10 and the Public Announcement of the Phased Implementation of the Article 10 System, and was revised in 5 Shahrivar 1405.

For a real case, The latest text of the laws and regulations and the implementation status of the systems must be checked again at the time of action.

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