Comprehensive Guide to Property Seizure

Comprehensive Guide to Property Seizure

Property seizure is a provisional measure in civil proceedings. Under this measure, real property belonging to the defendant or judgment debtor in a civil claim is temporarily restricted from transfer to secure the claim or enforce a judgment. A seizure may be imposed before the court issues its decision, as a precautionary seizure, or after a final decision, as an enforcement seizure. Pursuant to Articles 114 and subsequent provisions of the Civil Judgment Enforcement Law, the court may, upon the claimant’s request, order the seizure of the opposing party’s immovable property, provided that the claimant presents sufficient evidence to substantiate the debt or claim. For registered properties, seizure is carried out through an order directed to the relevant Land Registry Office, and the restriction is recorded on the property’s title deed. Once a property is seized, the owner is not permitted to sell, transfer, or assign the property without judicial authorization. The purpose of this measure is to prevent prejudice to the claimant’s rights and to facilitate effective enforcement of the final judgment.

Types of Property Seizure in Civil Claims

From the perspective of timing and purpose, property seizure is generally divided into two principal types: precautionary seizure and enforcement seizure. Precautionary seizure, pursuant to Article 108 of the Civil Procedure Code, is imposed before judgment solely to secure the potential enforcement of a future ruling. The claimant must submit adequate supporting documentation and, where required, deposit potential damages with the judiciary’s treasury so that compensation is available if the claim is ultimately found to be unfounded. Enforcement seizure is imposed after a final judgment in the course of execution proceedings to collect the adjudicated amount. In this context, pursuant to Article 49 of the Civil Judgment Enforcement Law, the property is seized as an asset of the judgment debtor and, if the debt remains unpaid, it may be sold through public auction.

In addition to these two categories, a seizure may also be requested through an application to secure the claim, which the claimant may file at the time of initiating the lawsuit or during the proceedings. In all cases, the seizure must be communicated to the relevant Land Registry Office and recorded in the minutes or the official property register. Observance of statutory formalities in each type of seizure safeguards the legal rights of both the owner and the claimant.

Legal Requirements for Property Seizure

Lawful property seizure requires compliance with conditions set out in the Civil Procedure Code and the Civil Judgment Enforcement Law. The most essential requirement is the existence of a valid civil claim or a final enforceable judgment. The claimant must prove the necessity of seizing the defendant’s property by presenting strong and reliable evidence. In precautionary seizure matters, Article 108 of the Civil Procedure Code obliges the claimant to provide security for potential damages so that any harm suffered by the opposing party may be compensated if the claimant is not entitled to relief.

The subject property must have an official title deed or a clearly identifiable registration number. Seizure of properties lacking an official deed generally requires further judicial review. Additionally, the property must be owned by the defendant and must not already be subject to another seizure or legal restriction. After a seizure is ordered, the judicial authority issues instructions to the Land Registry Office, and the seizure is recorded in the property register. From that stage onward, the owner is prohibited from any form of disposal or transfer. Failure to meet these requirements may render the seizure invalid and may expose the claimant to civil liability. For this reason, strict compliance with these conditions is of significant importance.

Procedure for Registering Property Seizure at the Land Registry

After the court issues an order to seize property, the seizure must be implemented through the Land Registry Office in accordance with applicable procedures. First, the court transmits the seizure order to the relevant registration and enforcement unit. Upon receipt, the Land Registry Office verifies that the property is registered in the name of the judgment debtor and that no prior seizure has been recorded against it. If these conditions are satisfied, the registry records the seizure in the remarks section of the official property register. Pursuant to Article 126 of the Regulation on Enforcement of Official Executory Documents, once the seizure is recorded, the Land Registry Office must notify the owner, the applicant, and other interested parties.

Following registration, a certificate confirming the prohibition of transfer may be issued. In addition, the process to issue an enforcement order for the auction and sale of the property may proceed. Registration at the Land Registry gives the seizure a formal and enforceable effect and prevents misuse by the owner. Accurate entry of the property details, the owner’s information, and the issuing judicial authority is particularly important.

Difference Between Property Seizure, Confiscation, and Detention

Although the terms seizure, confiscation, and detention may appear similar, they have fundamentally different legal meanings. Property seizure is a temporary measure intended to preserve the claimant’s rights in a civil dispute or to facilitate enforcement of a civil judgment. In this situation, ownership is not removed, but any transfer is prohibited. Property detention is used within the framework of registration rules and the enforcement of official documents. It is similar to a seizure, but is more commonly used in contexts such as enforcement orders issued by notary offices. Confiscation is a permanent measure that is typically ordered in criminal proceedings. Pursuant to Article 215 of the Islamic Penal Code, where property constitutes proceeds of crime or an instrument used in committing an offense, the court may order its confiscation. Unlike a seizure, which is temporary and may be lifted, confiscation results in a complete transfer of ownership to the government or a third party. Understanding these distinctions is crucial for litigants and legal professionals because each produces different legal effects and enforcement consequences.

The Role of the Title Deed in Property Seizure

An official title deed is the most important evidence of ownership in real estate matters and plays a decisive role in the possibility and manner of property seizure. Pursuant to Article 22 of the Registration Law, the official owner is the person whose name appears in the official registry as the registered owner of the property. In the seizure process, the judicial authority or the registration enforcement unit reviews the official title deed and issues the seizure order accordingly. Property lacking an official deed or supported only by informal documents is generally not subject to seizure unless the court issues a specific order and ownership is proven.

In jointly owned property, seizure applies only to the specific share of the identified owner, and the entire property may not be seized. Moreover, if the title is subject to a mortgage or pledge, the secured creditor’s priority rights must be respected. Seizing property without observing the mortgagee’s rights may render the procedure invalid. Where an electronic title deed exists, the seizure may also be registered through the relevant registration system. Therefore, a valid official title deed is a key prerequisite for an effective and lawful property seizure.

Prohibition on Transfer of Seized Property

One of the most significant legal consequences of property seizure is the statutory prohibition on transfer. Pursuant to Article 45 of the Civil Judgment Enforcement Law, once the seizure is registered at the Land Registry Office, the owner is prohibited from selling, gifting, settling, mortgaging, or otherwise transferring the property. This restriction is imposed to protect the rights of the claimant or creditor, and any transaction carried out after seizure is void or unenforceable. Even if the owner attempts to transfer the property to relatives or trusted individuals, such a transfer is not recognized and has no legal effect.

If a transaction occurs after seizure, the purchaser will not be able to obtain an official title, as the Land Registry Office will not issue the necessary transfer documents. In limited circumstances, transfer may be permitted with authorization from the enforcement judge or the judicial authority that issued the seizure order, but only upon a justified basis. It is strongly recommended that prospective buyers conduct a registry inquiry to confirm whether a property is subject to seizure or detention before completing any purchase.

Lifting a Property Seizure and Related Formalities

Lifting a property seizure is a process that occurs when the grounds for seizure no longer exist and the issuing authority orders its removal. Where a final judgment has been issued, and the adjudicated amount has been paid, the seizure may be lifted upon submission of a written consent or satisfaction statement from the claimant or beneficiary. In precautionary seizure matters, if the claimant withdraws the claim or the court rules that the claimant is not entitled to relief, the seizure becomes ineffective as a matter of law.

After confirming the relevant conditions, the judicial authority issues an order to lift the seizure, which must be transmitted to the relevant Land Registry Office. Upon receipt, the registry removes the seizure entry from the property register and issues a clearance certificate confirming that the property is free from seizure. A lifting of seizure may also be possible where the property has been offered for auction without a successful bidder, or where the judgment debtor introduces an alternative asset. Applications to lift seizure must be submitted in writing, supported by documentation, and based on legally valid grounds. It is advisable to pursue the process with legal counsel experienced in real estate disputes to prevent further complications.

The Role of Legal Counsel in Seizure and Property Defense

Engaging specialized legal counsel during seizure proceedings or in defending against a seizure is important for protecting the rights of both parties. An attorney with thorough knowledge of relevant provisions, including Articles 108, 114, and 49 of the applicable procedural and enforcement laws, can obtain a seizure order for the claimant or submit an effective objection on behalf of the defendant. If a property has been seized in error, counsel may seek immediate relief from the seizure by presenting appropriate evidence. Legal representation is also valuable during auctions, valuation procedures, and objections to expert assessment, as it helps prevent loss of the owner’s rights.

Where the property is mortgaged to a bank or subject to third-party security interests, counsel can rely on the priority rights of the secured creditor to challenge or prevent seizure. Counsel may also conduct registry inquiries, challenge unlawful seizure measures, and represent the owner in court proceedings. Without proper legal representation, seizure-related procedures may involve legal defects that can cause significant harm to the client.

At Soroush Salamian Law Firm, we provide legal services in property seizure, enforcement actions, and real estate disputes.

Important Legal Notes Regarding Property Seizure

In property seizure matters, the following legal points should be carefully observed:

• A valid civil claim or a final enforceable judgment is required for lawful seizure.
• Seizure is generally possible only with respect to specific property supported by an official title deed.
• In jointly owned property, only the owner’s share may be seized, not the entire property.
• Registration of the seizure in the official property register is a condition of validity.
• Transactions concluded after seizure are unlawful and unenforceable.
• In a precautionary seizure, providing security for potential damages is mandatory.
• Seizure may be lifted upon payment of the debt or upon obtaining the beneficiary’s consent.
• Where the property is mortgaged, the rights of the mortgagee must be respected before seizure.
• In auction proceedings, valuation must be accurate and conducted by a certified expert.
• Consultation with legal counsel before taking action is strongly recommended.

Observing these points helps prevent serious complications in legal disputes involving real property.

Frequently Asked Questions About the Property Seizure Guide