The effect of Article 62 of the Law on the Permanent Provisions of the Country's Development Plans of the Country on the basics of the theory of Consensual contracts of real estate deals

Document Type : Original Article

Authors

1 Ph.D. Student in Law, Faculty of Law and Political Science, Mazandaran University, Babolsar. Iran.

2 Professor of Law, Department, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran.

3 Professor of Law, Department, Faculty of Law and Political Science, Mazandaran University, Babolsar, Iran,

10.48300/jlr.2024.433447.2546

Abstract

Abstract
The approval of Article 62 of the Law on the Permanent Provisions of the Country's Development Plans and the prevalent interpretation of this article has strengthened the theory of the Consensual contracts of real estate deals, despite some conflicting principles with the theory. Acceptance of the theory of validity of real estate transactions has led to numerous problems for the public, the judiciary, and the government. Many cases have arisen from transactions with ordinary documents involving individuals who have legitimately trusted the authorities and the organization for registration of documents and real estate in the country, and have formally entered into contracts, with their names recorded as the owners in the real estate office, leading to the issuance of judgments annulling official documents. This theory not only causes dissatisfaction for those facing this issue but also undermines the order and security of real estate transactions, providing a means for many financial corruptions. To address these issues, there is no solution other than the enactment of a law to formalize registered real estate transactions or to render these transactions non-binding against third parties and the government, as in other credible legal systems. Hence, the approval of the proposal to require the formal registration of real estate transactions, which is currently under review by the Expediency Discernment Council, is essential.

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