The "Correct Legal Form" of Key Money Deals in Landlord-Tenant Relations Law Passed in 1997

Abstract

The general rule of Key Money or Goodwill, as is common among people in Iran, could be found in Note 2 of Article 6 of the Landlord-Tenant Relations Law passed in 1997, which states: "If the landlord transfers the key money to the tenant with a correct legal form, at the time of eviction, the tenant receives the right to legally demand key money on fair day rates." The legislator proposes two methods as examples of the "correct legal form". The question that arises here is that: By these two methods, is it possible to create a right with particular characteristics required in that general rule, so as to be able to jurisprudentially correct the common key money deals in accordance with the law, or not? By analyzing the jurisprudential foundations of these two methods, it becomes clear that no one can create a right to be transferable and legally demandable to the rate of the day. Therefore, the two methods mentioned in the Law of 1997 aren't competent to jurisprudentially correct the common key money deals, and are inconsistent with that general rule.

Keywords

• key money
• goodwill
• transfer
• transaction
• lease
• landlord