One of the most critical legal challenges in Iran concerns the clarification of land and property ownership status, the legal stabilization of individual ownership over immovable assets, and the prevention of invalidation of official title deeds in disputes involving informal (non-registered) documents. Iran’s system of registration governance, with a history exceeding 120 years, has yet to achieve the desired stability despite extensive efforts. This instability largely stems from fragmented and inconsistent legislation governing land allocation and registration, alongside the widespread use of informal property transactions.
These deficiencies have led to significant legal uncertainty in property relations, an increase in real estate disputes, and a rise in civil and criminal litigation related to informal documentation. Furthermore, they have facilitated various criminal activities such as money laundering, fraudulent transfers, unlawful occupation, encroachment on public and national lands, tax evasion, and avoidance of financial obligations. These issues represent only a fraction of the broader dysfunction caused by disorder within the property registration framework.
Without comprehensive reform of the registration system, Iran’s national development objectives cannot be fully realized. Structural weaknesses in property ownership, combined with the increasing prevalence of informal transactions, directly and indirectly undermine policy effectiveness across all sectors. Although the registration of real property transactions has been made compulsory and the acceptance of informal documents in official and judicial settings has been legally restricted—particularly following the enactment of the Cadastral Law—the property system remains unsettled due to persistent reliance on informal instruments.
In contrast, numerous countries, including several Islamic states, have wholly or partially revoked the legal validity of informal documents related to real estate transactions to secure property rights and promote broader economic goals. This article examines the objectives and various facets of the proposal mandating official registration of immovable property transactions, identifies its shortcomings, and offers recommendations for amendment and more effective implementation.