Registering Property

Registering Property

Below is a detailed summary of the steps, time and cost involved in registering property in Iran, Islamic Rep.. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.

 

  • Standard Property Transfer
  • Property value: IRR 4,391,133,065.4
  • City: Tehran
NOProcedure

 

Time to completeAssociated costs
 

1

 

Obtain a certificate of completion of the building
Agency: Municipality

A certificate of completion of the building erected on the land must be obtained from the Municipality.

 

 

30 days (simultaneous with Procedures 1, 2, 3, 4, 5, 6, and 7)

 

no cost

 

2

 

Obtain a certificate of occupation and insurance liquidation
Agency: Department of Labor & Social Affairs

In case the building is used for administrative purposes and has a certificate of completion of the building, a certificate of occupation and insurance liquidation must be obtained from the Department of Labor & Social Affairs for all insured workers.

 

 

19 days (simultaneous with Procedures 1, 3, 4, 5, 6 and 7)

 

no cost

 

3

 

Obtain a social security clearance certificate
Agency: Social Security Organization

A social security clearance certificate must be obtained from the Social Security Organization.

 

 

7 days (simultaneous with Procedures 1, 2, 4, 5, 6 and 7)

 

no cost

 

4

 

Conduct a check on the property at the Real Estate Registration Department
Agency: Real Estate Registration Department

The time of administrative formalities have been changed. Earlier replies to the real estates inquiries have been done manually. This was before the computer inquiry approach was introduced, and now it is performed by the computer systems and online websites of the registation organization that replaced long physical inquiries, many legel formalities, more paper usage and higher costs. Now the formalities last at least 3-4 days. The copy of the title deeds or replica copy is valid for one months untill the asnwer of the Land Registry is displayed on its official website. The fee of the procedure is 80.000/- IRR.

 

 

3 days (simultaneous with Procedures 1, 2, 3, 4, 6, and 7)

 

IRR 80,000

 

5

 

Obtain a tax clearance certificate from the Tax Affairs Organization
Agency: Tax Affairs Organization

The clearance of taxes is determined according to official regional values. The certificate is valid for 1 month. The Law on the Facilitation of Administration of Notary Public Office of July 2006 introduced changes to ease the property registration process and limit rent seeking. Article 1 of the new law introduced more flexible requirements. Rather than obtain these documents from the relevant authorities, buyers can obtain a sworn declaration from the sellers that all taxes, social security payments, and changes to the building are in good order and have been paid. In practice, agents still obtain the certificates.

 

 

1 day (simultaneous with Procedures 1, 2, 3, 4, 6, and 7)

 

5% of property price of “Mantaghe Bandi”

 

6

 

Payment of transfer tax at Bank Melli
Agency: Bank Melli

The legal stamp should be paid at Bank Melli Iran before drafting the sale purchase agreement. According to the laws and regulations of the Registration Department, transfer tax is calculated according to the “Mantaghe Bandi” (zoning) price, so transfer tax for deeds up to IRR 40,000,000 would be 3% and for deeds of over IRR 40,000,000 would be 5% of the total amount. The price mentioned in the deed may be the ”Mantaghe Bandi” price or the market price. In any way ‘‘Mantaghe Bandi” is the basis of calculation which is between 7% to 10% of the real price. Even if the real price is mentioned in the deed, the basis of calculation for transfer tax is the ”Mantaghe Bandi” price which is calculated by the notary.

 

 

1 day (simultaneous with Procedures 1, 2, 3, 4, 5, and 7)

 

5% of property value (transfer tax) + 0.5% of property value (legal stamp transferred to government)

 

7

 

Obtain settlement certificate for reconstruction duty from the Municipality
Agency: Tax Affairs Organization

A tax clearance certificate must be obtained from the Municipality to account for all the renovations made to the property.

 

 

Less than a day (online procedure; simultaneous with procedures 1, 2, 3, 4, 5, and 6)

 

no cost

 

8

 

The deed is prepared and notarized at the notary public’s office 
Agency: Public Notary

The notary public collects an amount according to legal tariffs determined by the Organization of Deeds and Properties Registration at the time of drawing up the deed, which includes writing fee and the registration fee. According to the decree 87/8039 of the Deputy Head of the Organization for the Registration of Deeds and Properties.

 

2 days

 

According to the laws and regulations of the registration department and updating the tariffs, writing fee in notary is calculated according to the “Mantaghe Bandi” (Zoning) price, so writing fee for Deeds up to 2,000,000 IRR would be 250,000IRR and for deeds of over two million Rials up to 10,000,000 would be 4% and for deeds of over ten million Rials up to 200,000,000 would be o.4% and for deeds of over two hundred million Rials up to 1,000,000,000 would be o.3% and for deeds of over thousand million Rials would be o.1% of total amount.

 

9

 

The title is registered at the Real Estate Registration Department
Agency: Real Estate Registration Department

“The title is registered at the Real Estate Registration Department by the notary public, who sends an abstract of the deed.

According to the law of “”the fifth economic ,social and cultural development plan(2011-2015)in Iran””) Replace old title deeds and land property documents with new one, in order to increase security of deeds and also digitize deeds information and make executive modern registration method with the applying of Information Technology (IT).”

 

 

3 d

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