Formation of Real Estate Transactions in Iranian and English Law

Abstract

One of the challenges in contract law is the quality of the expression of intent and the conclusion of real estate transactions. Contrary to the principle of autonomy of will and freedom of contracts, which allows the contracting parties to arrange their transactions in any form and quality, real estate transactions are restricted due to considerations of public order and the protection of third-party rights. Consequently, such transactions must be documented in writing and registered. In both Iranian and English legal systems, drafting an official document for real estate transactions is obligatory. However, in Iranian law, an official document refers to a deed prepared in a notary public office and recorded in the property registry, while in English law, an official document must include the identification of the parties, the subject of the transaction, and all agreements drafted in writing, signed by the parties or their legal representatives and two witnesses, and must explicitly state the term "deed." In Iranian law, before the enactment of the law mandating the formal registration of real estate transactions, such contracts were subject to the evidentiary and consensual nature of agreements, as stated in Article 62 of the Permanent Provisions of the Sixth Development Plan, and could be deemed valid if proven in court. However, in English law, if a transaction is concluded without an official document, it is considered void and lacks legal validity, except in cases where the validity of the transaction is established in court based on the principles of estoppel and trust.