Construction Without a Permit

Construction Without a Permit

Construction without a permit refers to commencing building or development activities without obtaining an official building permit from the municipality or other competent authorities. The importance of this permit lies in its evidence of compliance with technical, urban planning, health, and safety standards. Where a permit is absent, the project may create urban disorder, safety risks, and multiple legal complications.

A building permit helps ensure that construction complies with requirements set out in detailed urban plans, engineering principles, and the National Building Regulations. It also enables the municipality to supervise the project and prevent violations and potential losses effectively. Failure to obtain a permit not only prevents the project from proceeding lawfully but also exposes the owner or developer to serious legal consequences, including suspension of works, substantial fines, demolition orders, and restrictions on certain ownership-related rights.

Unauthorized construction often occurs due to a lack of awareness, haste, or profit-seeking. However, it is typically costly and high-risk in the long term. For this reason, understanding the consequences and complying with the legal process is essential.

Authority Responsible for Reviewing Unauthorized Construction

The Article 100 Commission primarily reviews violations of Urban construction laws. This commission includes representatives of the judiciary, the Ministry of Interior, and the municipality. It is tasked with examining violations related to building operations, changes of use, and deviations from the issued building permit.

Municipalities are required to document construction violations and refer the file to the Commission for a decision. After reviewing the documents and hearing the owner’s defense or the defense submitted by the owner’s representative, the Commission issues an appropriate decision. Decisions of the Article 100 Commission are significant because they may include fines, orders to remedy and correct the building, or orders for partial or complete demolition. The decision is binding on the owner, and if the owner does not comply, the municipality must enforce it.

The Article 100 Commission has an administrative, quasi-judicial nature. It has the legal authority to issue enforceable decisions and typically applies a specialized approach to technical and urban planning matters, unlike ordinary courts. It remains one of the main mechanisms for managing urban construction compliance.

The Most Common Violations Covered by Article 100 of the Municipal Law

Article 100 of the Municipal Law addresses a range of construction violations, each with its own legal consequences. One of the most common violations is constructing without a permit, including building a new structure or adding to an existing building. Another frequent category involves exceeding the scope of the issued permit, such as adding extra floors, changing approved plans, or increasing the building coverage ratio.

Other important violations include failure to comply with technical, health, and urban planning standards, such as structures with insufficient lighting and ventilation, or buildings whose seismic safety has not been verified. Unauthorized change of use is also common, such as converting residential premises into commercial or industrial use without the required authorization.

In addition, construction of balconies, stairs, projections, or additional parking spaces that are not included in the approved permit may also fall within the scope of Article 100. Identifying the exact violation matters because the Commission’s response may differ, ranging from monetary fines to demolition, depending on the nature and severity of the breach.

How the Commission Issues a Demolition Order or a Monetary Fine

When a construction violation is referred to the Article 100 Commission, the Commission reviews the approved plans, the municipality’s report, and the owner’s explanations, then issues the appropriate decision. If the construction does not meet technical, health, or urban planning standards, a demolition order may be issued. If these standards are satisfied, the Commission commonly issues a decision requiring payment of a monetary fine.

In cases of additional floors or excess construction, demolition may be ordered if correction is not feasible. If the construction complies with technical and planning standards, the owner may be permitted to avoid demolition by paying the fine. Fines are usually calculated as a specific amount per square meter of the unauthorized area, based on the property’s municipal transactional value at the time of the violation.

The decision is served on the owner, and if the owner fails to comply, the municipality must enforce it. In certain cases, failure to comply may result in enforcement measures, such as restrictions on municipal services or the attachment of assets, pursuant to applicable rules. The Commission’s mechanism is therefore a central legal tool for enforcing urban construction regulations.

How Monetary Fines Are Calculated for Construction Without a Permit

Fines imposed by the Article 100 Commission for construction without a permit are typically calculated based on the area of unauthorized construction and the municipal transactional value per square meter. Transactional values are commonly determined using tables issued by the municipal property valuation committee.

For example, if an owner builds an additional 50 square meters and the transactional value per square meter is set at 10,000,000 tomans, the fine may be assessed up to a stated percentage of that amount per square meter, depending on the violation and applicable practice. In some contexts, a percentage related to goodwill value may also be considered.

These fines generally apply where the violation does not breach core technical and safety requirements. If safety or urban planning standards are seriously violated, demolition is more likely. The purpose of this approach is both deterrence and regularization, which is lawful. Some municipalities allow installment payment, depending on local procedures.

Importantly, paying a fine does not automatically legalize continued violation. In specific circumstances and subject to the Commission’s final approval, the unauthorized construction may be regularized. Accurate fine assessment requires expert review and careful examination of the file.

Conditions for Issuing and Enforcing a Demolition Order

A demolition order is the most severe legal response to unauthorized construction. It is typically issued where construction without a permit is unsafe, inconsistent with urban planning rules, or not capable of correction. After reviewing plans, municipal technical reports, and the owner’s explanations, the Article 100 Commission may order demolition if it determines that the structure cannot be brought into compliance or poses significant risks.

The decision is served on the owner, who is generally required to demolish the unlawful part within a specified deadline, often less than two months. If the owner fails to do so, the municipality may proceed with demolition and recover the costs from the owner.

In some cases, demolition applies only to a specific part of the building, such as an extra floor or a section lacking standard lighting and ventilation. Enforcement follows specific procedures and may require coordination with law enforcement. Demolition is generally considered a last resort, applied when corrective measures or fines are insufficient. Proper enforcement requires balancing the owner’s rights with the public interest.

Criminal Consequences of Unauthorized Construction

Although construction without a permit is generally addressed within the administrative and municipal framework, it may, in certain circumstances, have criminal implications. Under Article 690 of the Islamic Penal Code (Ta’zirat), unlawful occupation of national lands or construction on public property may result in imprisonment from one month to one year, along with demolition of the structure.

Where a person knowingly constructs on land owned by the state or public entities, the conduct may be treated as an infringement of public rights and pursued criminally. In cases where an owner repeatedly engages in unlawful construction or obstructs enforcement of the Article 100 Commission’s decision, the municipality may request prosecutorial intervention. Depending on the circumstances, this may be framed as a disruption of public order or a refusal to comply with lawful orders.

Criminal enforcement generally requires strong evidence, proof of intent, and confirmation of unlawful occupation. Accordingly, where construction occurs solely on private land, consequences are often administrative, but serious or aggravated cases may lead to criminal proceedings.

The Status of Official Title Deeds for Unauthorized Buildings

A key question in real estate practice is whether an official deed can be issued for a building constructed without a permit. Under Registration Organization requirements and related regulations, a completion certificate issued by the municipality is typically required for the issuance of subdivision deeds and official property documents.

If a building is constructed without a permit, an official deed for the constructed parts is generally not issued until the matter is resolved through the Article 100 Commission, and a completion certificate is obtained. If the owner pays the fine and receives municipal approval, a completion certificate may be issued, and the owner may then apply for registration and deed issuance. Otherwise, even if the land itself has an official deed, the unauthorized structure may remain unregistered.

Transactions involving such properties, if conducted without clear disclosure of the legal status, may create serious contractual disputes and potential invalidity arguments depending on the facts. Notary offices are also required to request a completion certificate before executing transfer or subdivision deeds. Therefore, unauthorized construction may delay deed issuance for years, even where land ownership is lawful.

Can Water, Electricity, and Gas Connections Be Obtained for Unauthorized Construction?

Historically, utility connections such as water, electricity, and gas were generally provided only upon submission of a building permit and municipal completion certificate. However, in recent years, and following a legislative measure adopted in 2018, utility providers were required to supply connections where a building exists, even if permitting documentation is incomplete, subject to specific conditions.

These conditions commonly include that the building is within the lawful city limits, does not conflict with the detailed urban plan, and that the applicant undertakes to accept and comply with the Article 100 Commission’s decision. Necessary inquiries from the municipality and distribution companies may also be required.

The purpose of this policy was to prevent deprivation of essential services, not to legalize unauthorized construction. Accordingly, receiving utility connections does not mean the building is lawful. If the Commission issues a demolition decision, the owner must comply even if utilities have been installed. Therefore, although utility access may now be possible in certain cases, the legal risks and consequences of unauthorized construction remain and should be addressed through proper procedures.

The Role of the Supervising Engineer and Their Liability in Construction Violations

The supervising engineer is a key element in lawful construction and, under the Construction Engineering Organization framework, is responsible for ensuring that work is carried out in accordance with approved plans and the National Building Regulations. Where construction occurs without a permit or exceeds the permit scope, and the supervising engineer is aware of the violation yet fails to take effective steps to stop it, disciplinary and even civil liability may arise.

The Construction Engineering Organization may review complaints filed by the municipality or private parties and, if a violation is established, may impose sanctions such as suspension or revocation of the engineer’s professional license. If an engineer issues reports that are inconsistent with reality, even due to negligence, the matter may harm professional standing and may create legal exposure depending on the facts.

Accordingly, where unauthorized construction or deviation from approved plans is observed, the supervising engineer should promptly notify the municipality in writing with proper documentation. This written notice is essential to reduce future liability. Failure to act may result in serious consequences for the project parties and the supervising engineer.

Legal Options to Remedy the Effects of Construction Violations

In many cases, after a violation is identified and a file is opened before the Article 100 Commission, owners seek lawful ways to remedy the effects of the violation. A common step is paying the monetary fine imposed by the Commission. Upon confirmation of technical compliance, payment may result in the issuance of a completion certificate and the regularization of the construction.

Another option is to bring the construction into compliance by modifying plans and implementing corrective works in line with municipal rules. In certain cases, the owner may request reconsideration of the Commission’s decision, including referral to the appellate Article 100 Commission. Where a demolition order has been issued, presenting technical evidence and expert reports and proposing a compliant revision may, in limited circumstances, help avoid demolition.

Legal counsel and a qualified engineer are important in this process. Some municipalities also have settlement or reconciliation committees that may consider special circumstances and recommend alternative outcomes within the permitted framework. Ultimately, once a favorable final decision is obtained and a completion certificate is issued, the violation may be treated as resolved, and the property may return to a lawful status.

Legal Recommendations to Prevent Unauthorized Construction

To avoid costly, complex legal procedures arising from construction without a permit, several principles should be observed. Before any construction activity, the owner should obtain all required permits from the municipality and other relevant authorities. Selecting a qualified designer and supervising engineer through lawful channels is also essential.

During execution, the owner should avoid any unapproved changes to the approved plans or unauthorized increases in building area without coordination with the supervising engineer and the municipality. Where a dispute arises or the municipality issues a warning, the matter should be addressed promptly through lawful procedures with support from legal and technical professionals.

Owners should also understand that even construction on private land without a permit is unlawful. Ownership documents, plans, supervising engineer reports, and all correspondence with the municipality should be maintained carefully. By following these measures, owners can avoid violation files, fines, demolition, and prolonged uncertainty, and can ensure a reliable and lawful construction process.

Frequently Asked Questions About Construction Without a Permit