Purchase of Inherited Property
A property that is transferred to heirs after the death of its owner is referred to as an inherited property. The purchase, sale, and transactions relating to such properties are subject to specific legal rules and procedures. For this reason, it is strongly recommended that purchasers exercise due diligence and consider all relevant legal considerations to avoid future legal complications.
Common Risks and Issues in Purchasing Inherited Property
Verification of Ownership
Verification of ownership is the first and most critical step in purchasing inherited property. If you intend to purchase such property, the title deed must be registered in the name of the deceased owner.
The certificate of inheritance is the most important document confirming the heirs’ ownership of the property.
This certificate lists the heirs and their respective shares of the inheritance. In addition to reviewing the certificate of inheritance, it is advisable to examine the deceased’s identity documents and obtain inquiries from the civil registry.
This process helps determine whether any additional heirs are not listed. It should be noted that the certificate of inheritance is issued by the Dispute Resolution Council.
Requirement for Consent and Signature of All Heirs
In cases involving multiple heirs, the presence and signatures of all heirs, or their legal representatives, at the time of the transaction and the execution of the sale agreement are mandatory. If certain heirs refuse to sign or sell their shares, the buyer may seek a court order compelling them to cooperate.
Heirs who sign the sale agreement may only sell their respective shares.
At the stage of executing the official deed, the presence of all heirs or their authorized representatives is also required.
If any heir refuses to cooperate at this stage, the buyer must pursue legal enforcement through the court.
Minor Heirs
Under the law, individuals under the age of fifteen do not have the legal capacity to manage their financial rights and property independently. As a result, transactions involving minors are conducted by their legal guardian or court-appointed custodian.
If one of the heirs is a minor or a legally incapacitated individual under guardianship, the guardian may not independently sell the minor’s immovable property.
In such cases, the guardian must notify the guardianship authority within the judiciary of the intention to sell the property.
The public prosecutor will then assess whether the sale serves the best interests of the minor and grant permission if appropriate.
Note: The buyer must obtain not only the guardianship appointment document but also the official court authorization permitting the sale of the minor’s property.
Wills
Under Iranian law, individuals may make a will for up to one-third of their property. Such a will may be either informal or officially registered.
One potential legal risk in transactions involving inherited property is the existence of an informal will that may be presented after the transaction has occurred. Therefore, it is strongly recommended that you verify whether a will exists before completing the purchase.
Required Documents for Transfer of Inherited Property
If all heirs agree to sell the property, they may proceed with the necessary steps for transfer. In addition to the documents required for the execution of an official deed, the following must be provided:
- Certificate of inheritance certified as a true copy.
- Original title deed of the property.
- Tax clearance certificate for inheritance tax.
- Guardianship authorization, where applicable.
The Dispute Resolution Council must certify the certificate of inheritance, and the declared value in the certificate must exceed three million tomans.
If the stated value is below this amount, transfer of ownership based on the certificate will not be legally possible.
If one of the heirs has also passed away, a separate certificate of inheritance for that heir must be provided.
Key Legal Considerations in Purchasing Inherited Property
- Submission of a valid certificate of inheritance.
- Presence of all heirs at the time of the transaction.
- Presentation of the original title deed.
- Provision of inheritance tax clearance.
- Appointment of a guardian for legally incapacitated heirs.
- Payment of each heir’s share of the transaction price.
- Verification of the existence or absence of a will.
Note: If an heir sells the shares of other heirs without their consent, such a transaction is deemed an unlawful transfer of property and is null and void.
Frequently Asked Questions About Purchasing Inherited Property
Inherited property refers to property that is transferred to heirs after the death of the owner. Transactions involving such property are subject to specific legal procedures.
The first step is verification of ownership. The title deed must be in the name of the deceased, and the certificate of inheritance confirms the heirs’ ownership.
Yes. The presence and signatures of all heirs or their legal representatives are mandatory. In the event of non cooperation, court intervention may be required.
If one of the heirs is a minor, the guardian must obtain court approval before selling the minor’s immovable property. The buyer must request proof of such approval.
A valid will may cover up to one third of the deceased’s property. Buyers and heirs must verify whether a will exists, as it may affect ownership rights.
Required documents include a certified certificate of inheritance, the original title deed, inheritance tax clearance, and court authorization for guardians where applicable.
Such a transaction is legally invalid and constitutes unlawful transfer of property.
If the stated value is below three million tomans, the certificate cannot be used as a legal basis for transferring the property.
Because these transactions are governed by specific legal rules, failure to comply with them may render the transaction invalid and result in serious legal consequences for the buyer. What is inherited property?
What is the first step in purchasing inherited property?
Is the consent of all heirs required to sell inherited property?
How is inherited property sold when there is a minor heir?
How does a will affect the purchase of inherited property?
What documents are required for transferring inherited property?
What happens if an heir sells property without the consent of others?
Why is the value stated in the certificate of inheritance important?
Why does purchasing inherited property require careful legal review?
