A Guide to Dividing Inherited Real Estate in Iran

A Guide to Dividing Inherited Real Estate in Iran

Inheritance rules in Iran are rooted in the jurisprudence of Twelver Shi’a law and are reflected in the Civil Code of the Islamic Republic of Iran. Article 861 of the Civil Code provides that inheritance arises through kinship or legal cause, such as marriage. With respect to real estate, upon the owner’s death, the estate must first satisfy the deceased’s debts and financial obligations, including dower claims, religious dues (where applicable), outstanding debts, and funeral-related costs. Only what remains is distributed among the heirs in accordance with their prescribed shares.

Where the inherited property is held in common, each heir becomes a co-owner in proportion to their inheritance share. Until partition is completed, the property cannot be used or possessed exclusively by any one heir unless all heirs consent. Article 868 further clarifies that heirs acquire ownership of the estate by operation of law from the time of death, not from the date of a will or a partition agreement. Accordingly, compliance with the legal steps for succession certification, debt settlement, and partition is essential to secure each heir’s lawful share. Any unilateral action taken without observing these steps may expose the acting party to civil claims by the other heirs.

Legal Steps for Dividing Inherited Property After Death

The division of inherited real estate in Iran generally involves several legal stages. The first step is obtaining a succession certificate from the Dispute Resolution Council of the deceased’s last place of residence. This certificate identifies the legal heirs and their respective shares of inheritance. The next step is to determine and pay the deceased’s debts and mandatory financial obligations from the estate.

Afterward, the property is typically valued, often by a court-appointed expert, to establish its current market value. Where multiple heirs own the property jointly, the heirs may either divide it by mutual agreement or request partition of jointly owned property through the legally competent authority. If a physical partition is not feasible, the court may order the sale of the property and the distribution of the proceeds according to the heirs’ shares.

Any attempt to sell, lease, or carry out construction on jointly owned inherited property without the consent of all heirs is generally unlawful. Where a valid will exists, its provisions must be implemented first; the remaining estate is then divided. In short, inheritance division is a structured process, and following the lawful sequence is a practical safeguard against family disputes and litigation.

Children’s Inheritance Share in a Father’s Real Estate

Under Iranian law, children are first-class heirs and, after the surviving spouse, typically receive the largest portion of the estate. Article 907 of the Civil Code provides that where the deceased leaves both sons and daughters, each son receives twice the share of each daughter. For example, if a property is valued at 1,000,000,000 tomans and the heirs are two sons and one daughter, each son would inherit 400,000,000 tomans and the daughter 200,000,000 tomans, subject to settlement of debts and the spouse’s share.

This rule reflects established principles of Imamiyah jurisprudence and is applied in Iranian law, unless the heirs voluntarily agree to a different arrangement through a lawful settlement. If, during the deceased’s lifetime, part of the property was transferred to one child, other heirs may contest the transfer during inheritance proceedings, particularly where there is suspicion of concealment, unfair depletion of the estate, or a simulated transaction. As a result, determining children’s shares requires review of official deeds, the validity of any will, and the protection of the surviving spouse’s rights and other heirs’ entitlements.

The Surviving Spouse’s Role and Share in Inherited Real Estate

The surviving spouse is also a statutory heir, but the spouse’s share in immovable property is subject to specific rules. Under the Civil Code framework, a wife does not inherit the land itself as an in-kind share, but she may inherit from the property’s value. Article 948 provides that the wife is entitled to inherit from the price of immovable property, meaning she receives a monetary share calculated from the property’s value rather than a direct ownership share in the land itself.

By contrast, a husband inherits the entirety of the deceased wife’s assets, including movable and immovable property. In general terms, where the deceased has children, the spouse’s share is typically one eighth of the estate, and where there are no children, it is typically one fourth, after payment of debts and funeral costs.

Where a will exists, the spouse may also receive a bequest within the lawful limits. A person may generally bequeath up to one-third of the estate, and any bequest beyond that requires approval of the heirs. Because the spouse’s rights affect both valuation and distribution, careful legal planning and advice are often necessary.

How Jointly Owned Inherited Property Is Divided Among Heirs

A jointly owned property is one owned by multiple persons without physical separation of each share. After the owner’s death, heirs become co-owners in proportion to their inheritance shares. The division of such property usually requires a legal partition.

If the property is within the registration system, the initial partition request may be submitted to the local Registration Office. If partition is not possible, for example, due to the property’s size or structural limitations, the matter is referred to the court, which may ultimately order the sale of the property and division of proceeds.

Any heir may request partition, even if other heirs disagree. Until the partition or sale is completed, none of the co-owners may unilaterally carry out physical acts of possession.

Leasing the property or undertaking construction requires the consent of all co-owners. Until lawful partition or sale occurs, the property remains jointly owned, and no heir may claim an exclusive physical part as their own.

Inherited Real Estate Where a Valid Will Exists

Wills in Iran are governed by the Civil Code, including provisions commonly referenced between Articles 825 and 861. A person may generally dispose by will of up to one-third of their property. Any disposition exceeding one-third requires approval of the heirs.

Where the deceased has left a will relating to real estate, it is enforceable only within these limits. If, for example, a will grants a particular house to a specific beneficiary, it is effective only if the value falls within one-third of the net estate or if the heirs consent to the excess. The will must also satisfy legal requirements, including the testator’s legal capacity, clear identification of the bequest, and formal validity where required.

The execution of the will takes priority over the distribution of the estate. Heirs must first implement the will, then divide the remaining estate. Where the will is an official instrument, it may be executable through formal procedures without requiring a separate court judgment, depending on the circumstances.

Selling Inherited Property Without the Consent of Other Heirs

Under Iranian law, the sale of jointly owned inherited real estate is valid only after lawful partition or with the consent of all co-owners. If one heir sells their undivided share without the others’ consent, the buyer acquires only that seller’s share and cannot lawfully possess the entire property.

In practice, such transactions frequently lead to disputes and claims by other heirs, including actions seeking eviction or removal of unlawful possession. The Civil Code, including Article 581, reflects the principle that no co-owner may dispose of or physically possess the common property without the permission of the other co-owners. Even if a deed is executed, a lack of collective consent may create significant legal complications.

Where heirs intend to sell, the safer approach is a collective sale with proceeds distributed. Alternatively, if one heir wishes to purchase the others’ shares, an expert valuation and formal documentation are recommended to reduce the risk of later disputes.

How Inheritance Tax Is Calculated for Real Estate

After death, the deceased’s assets are subject to inheritance tax. For real estate, the tax is calculated in accordance with the amended tax framework, including Article 17 of the Direct Taxes Act, as revised in 1395, which bases assessment on the property’s day value.

Before transferring an inherited property deed into the heirs’ names, the inheritance tax must be paid. Heirs usually apply to the local tax office where the property is located, complete the required tax declaration, and submit supporting documents. The property is then evaluated, and the tax is assessed based on the declared and confirmed value. Tax rates vary by heir class, with first-class heirs generally paying lower rates.

Without payment of inheritance tax, official transfer through the Registration Organization is typically not possible. Commonly required documents include the succession certificate, the property deed, the death certificate, and the identification records of the heirs. Because property valuation affects the tax amount and timing of transfer, estimating and paying inheritance tax early helps avoid delays.

The Legal Status of Inherited Property With a Tenant

An inherited property may be subject to an existing lease. In that case, the tenant’s rights remain protected under the lease contract executed with the deceased. The heirs become the landlord’s legal successors and must comply with the lease obligations.

Where the lease is formally documented or carries a tracking code, the tenant may remain in the property until the lease term ends. Rent due after the date of death should be paid to a joint account of the heirs or an account designated with the agreement of all heirs. If the heirs disagree about management or rent collection, the court may appoint an estate administrator.

Eviction is generally possible only after the lease term ends or if the tenant breaches the lease conditions. No single heir may unilaterally order eviction. Until the property is formally divided, decisions regarding the lease should be made jointly or pursuant to a court order.

Legal Solutions for Disputes Among Heirs Over Property Division

Disputes among heirs over inherited real estate are common, particularly when one heir wants to sell or live in the property while others object. Iranian law provides structured remedies. The primary legal route is to file for partition or to request an order for the sale of jointly owned property through the competent court.

Any heir may request partition without the consent of others. If partition is not possible, the court may order the property to be sold, commonly through auction or an agreed sale process, and the proceeds divided among the heirs according to their shares. Where possession disputes arise, claims such as eviction, removal of unlawful possession, or compensation for use of the property may be raised, often supported by expert assessment.

Where conflicts are significant, settlement approaches, including arbitration, written compromise agreements, and negotiation through counsel, may be effective. Involving a trusted third party, such as the Dispute Resolution Council, can also help. Using lawful dispute resolution mechanisms reduces time and costs and may help preserve family relationships.

Frequently Asked Questions About Dividing Inherited Real Estate