Formality (Registry) Sanctions for Violation of Building Pre-sale Act

Abstract

In the Iranian economy, housing is not a means only for family habitation but is a means for investment and saving. Undoubtedly, a considerable part of transactions of the country is dedicated to buying and selling or pre-selling of the building based on the direct effect of the health of this market on providing economic and Judicial order. The legislator has set several formal conditions for the pre-sale contract of building for organizing this full risk market in the Building Pre-Sale Act. One of these conditions is the necessity of setting a formal document for this contract and the provision of guaranteeing punishment execution for lack of doing that. In this research, the effect of setting a formal transition document on the validity of this kind of contract has been studied and based on relying on law principles, registration systems, judicial procedures and the Building Pre-Sale Act, tries to guarantee the execution of the reversal of the registration formality of the building pre-sale contracts. It has been concluded that in Iranian law, the preparation of an official document is generally a means of proof (not fixing) a building pre-sale contract. Document registration is only a notification tool, awareness of the statistics, and transfer of the real estate in order to guarantee the rights of persons, especially pre-buyer. Therefore, the lack of official registration of the building pre-sale contract cannot be considered as a reason for not forming it.

Keywords

• building pre-sale contracts
• official document
• the building pre-sale act
• remedies