Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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Sarghofli and commercial-tenancy goodwill rights

Sarghofli and commercial-tenancy goodwill rights

Sarghofli and statutory commercial-tenancy goodwill rights are important financial rights in commercial premises, but differ in origin, how they arise and how they are claimed. The law governing the tenancy, contract date and payment or transfer arrangements are central to the outcome.

Before filing, examine the lease, tenancy start date, payment receipts, consent to transfer, business activity and possession history. These determine whether the 1356 SH or 1376 SH Landlord and Tenant Relations Act, or the parties’ particular agreement, governs the matter.

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What are sarghofli and commercial-tenancy goodwill rights?

Sarghofli is generally a financial right arising from agreement, payment or the conditions of the 1376 SH Landlord and Tenant Relations Act. Statutory commercial-tenancy goodwill rights are distinct, mainly associated with the 1356 SH Act, and arise through the tenant’s business activity and clientele. Identifying the right requires review of the contract’s date and wording.

Statutory basis: The Landlord and Tenant Relations Acts of 1356 and 1376 SH have different effects. The lease’s date and terms are therefore the first matters to review.

Main subjects of dispute

Transfer of sarghofli, eviction of commercial premises, change of business activity, misuse or neglect, the right to transfer to a third party, claim for the value of the right, and its valuation are common matters in this field. In many cases, an official expert opinion is important for determining the right’s current value.

Sarghofli and commercial-tenancy goodwill rights

Usual stages of review and follow-up

Reviewing the applicable law

The date and terms of the lease agreement and its extensions are reviewed.

Determining the nature of the right

The review identifies whether the claim concerns contractual sarghofli or statutory commercial-tenancy goodwill rights.

Assessing the evidence and value of the right

Payment records, permits, business history and, where needed, expert assessment are reviewed.

Filing or defending a claim

The appropriate remedy is identified, such as eviction, transfer, assertion of a right or defence against a claim.

The distinction between sarghofli and commercial-tenancy goodwill rights

Sarghofli and statutory commercial-tenancy goodwill rights are not interchangeable. Sarghofli is more closely linked to agreement, initial payment or transfer of the right. Goodwill rights under the 1356 SH tenancy regime relate to continued business activity and statutory conditions. Using the wrong term can change the route of a case.

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

Judgment and order for eviction from property

How eviction procedures differ for residential and commercial property.

Iranian real-estate contracts

Preparing and reviewing rental contracts and property transactions.

  • Landlord and Tenant Relations Act of 1356 SH

  • Landlord and Tenant Relations Act of 1376 SH

  • Iranian Civil Code («قانون مدنی»)

This list identifies the principal legal provisions relevant to the page. The applicable law and amendments must be checked against the dates, subject matter and circumstances of each case.

The official texts and latest amendments are available in the National Database of Iranian Laws and Regulations.

Frequently asked questions

The claimant must prove ownership in an admissible manner. For registered property, the official title deed plays a central role.
An ownership-based recovery claim (khalʿ-e yad) is brought against a person possessing property without authority. Tenant eviction usually concerns possession initially authorised by a contract, such as a lease, which later continues without authority.
In an ownership-based action to recover property, proof of ownership is central. In a civil unlawful-dispossession claim, the claimant’s prior possession, the defendant’s later possession, and the unlawful nature of that later possession are material.
A co-owner’s possession of jointly owned property is subject to special rules. The possibility of bringing an action and the manner of enforcing the judgment must be examined in light of the undivided share, the other co-owners’ consent, and the nature of the possession.
Where the requirements are met, compensation for the period of occupation may be claimed with the possession claim or separately. Assessment of that compensation usually requires an expert opinion.
Because the dispute concerns immovable property, jurisdiction generally lies with the court where the property is located. The precise position depends on the circumstances and relief sought.
Sarghofli is a financial right arising in relation to certain commercial premises; the conditions for its creation, transfer, and assertion depend on the contract and the law governing the landlord–tenant relationship.
These two concepts are not the same in terms of origin, the governing law and the conditions of claim. To determine the existing right, the date of the lease agreement, the terms of the contract and the method of creation or payment of the right must be examined.

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