Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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sarghofli key money and business goodwill rights in Iran

sarghofli key money and business goodwill rights in Iran

sarghofli key money and business goodwill rights in Iran are among the most important financial rights associated with commercial premises, but their origin, conditions of creation and method of claim are not the same. Determining the law governing the lease, the date of the contract and the method of payment or transfer of the right, plays a fundamental role in determining the outcome of the dispute.

Before filing a lawsuit, the lease agreement, the date of commencement of the lease relationship, the payment receipts, the transfer permit, the type of activity and the possession records must be examined to determine whether the matter is subject to the Iranian Landlord and Tenant Act («قانون روابط موجر و مستأجر») 1356, law 1376 or a special agreement between the parties.

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What are sarghofli and the business goodwill and occupancy right?

Sarghofli is generally a financial right created by agreement, payment, or the conditions of the 1376 Landlord and Tenant Relations Act. The business and goodwill right is a different institution, mainly linked to tenancies governed by the 1356 Act and formed through the tenant’s activity and attraction of customers. The exact right cannot be identified without reviewing the contract’s date and text.

Main subjects of dispute

Transfer sarghofli, an Iranian commercial-premises financial right, Vacating a business premises, Changing jobs, Encroachment and neglect, The right to transfer to another, Demanding the value of the right and how to assess it are common issues in this area. In many cases, the opinion of an official expert is important for determining the current value of the right.

sarghofli key money and business goodwill rights in Iran

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

It is determined whether the claim is related to sarghofli, an Iranian commercial-premises financial right contractual or business and goodwill right under Iranian tenancy law.

Assessing the evidence and value of the right

Payment documents, Licenses, Activity history and, if necessary, expert opinion are reviewed.

Filing or defending a claim

Appropriate request such as evacuation, transfer, claim or defense against it is selected.

Difference between sarghofli and the business goodwill and occupancy right

sarghofli key money and business goodwill rights in Iran are not complete synonyms. sarghofli, an Iranian commercial-premises financial right is more related to the agreement and initial payment or transfer of rights, while business and goodwill right under Iranian tenancy law in the legal system 1356 is related to the continuation of business activity and legal conditions. The incorrect use of these two titles can change the course of the case.

Related topics

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.
sarghofli, an Iranian commercial-premises financial right is a financial right in the relations of some commercial premises, the conditions for its creation, transfer and claim depend on the contract and the law governing the relationship between the landlord and the tenant.
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.

Methods of contact

Contact us for advice and follow-up of the case through the following ways