Property Deeds and Their Types

Property Deeds and Their Types

With the expansion of human transactions and the increasing purchase and sale of real estate, the execution of official property deeds has become increasingly important. Under the Registration Law, the government recognizes and legally acknowledges only those individuals whose names are recorded in an official deed as the owner.

Pursuant to Article 22 of the Registration Law, when a property is registered in accordance with the law and entered into the official land registry records, the government recognizes only the person in whose name the property is registered, or to whom it has been formally transferred through the registry offices, as the legal owner. In cases where a property is inherited from the officially registered owner, the heir is also considered the lawful owner under the law.

Common Issues in Property Deeds and Legal Solutions

Official Deeds

In general terms, when a legally authorized officer executes a deed, it is considered an official deed. Deeds prepared and registered at official notary public offices are clear examples of official deeds. Court judgments are also classified as official deeds because they are issued and recorded by government authorities, namely, judges.

Unofficial Deeds

Documents such as private agreements or preliminary sale contracts prepared between parties at real estate agencies are considered unofficial deeds.

Differences Between Official and Unofficial Deeds

One key distinction between official and unofficial deeds lies in their enforceability in court. Unofficial deeds can be easily denied or disputed in legal proceedings. In contrast, deeds that are formally executed and registered with a notary’s office carry significant legal weight and are not easily challenged.

Property Deeds

Given the extensive buying and selling of real estate in Tehran and other cities, a substantial portion of legal disputes in this area relates to the validity and integrity of property deeds. The law recognizes various types of property deeds, each with its own legal characteristics and implications. Preventing serious legal complications in real estate transactions requires a thorough understanding of property deeds and the relevant legal framework. The purpose of this article is to examine and introduce commonly used types of property deeds.

Types of Property Deeds

• Joint Ownership Deed: Joint ownership is the sharing of property among multiple individuals. Under this type of deed, every part of the property belongs collectively to all co-owners. A property is considered jointly owned when it has more than one owner, and all owners share rights over the entire property.
• Six-Dong Property Deed: A six-dong property deed is one of the most authoritative forms of ownership, recognizing a single individual as the sole owner. The term six dong refers to complete ownership in all directions, including the north, south, east, and west portions, as well as the upper and lower portions of the property. This deed represents full and absolute ownership.
• Single-Page Property Deed: In the past, property deeds were issued in booklet form, with multiple pages. Over time, these have been replaced by modern single-page deeds. Key features of single-page deeds include authenticity, clarity, readability, and ease of preservation. The national registration authorities officially approve these deeds.
• Land and Building Deed: A land deed relates to the land on which a building or apartment is constructed, while a building deed pertains to the individual units built upon that land.
• Power of Attorney Property Deed: In these deeds, one or more individuals are appointed as authorized agents to sell the property on behalf of the owner. For such deeds to be legally valid, the power of attorney must be officially registered with a notary public.
• Mortgage Property Deed: When a debtor pledges a property as collateral to a creditor, typically a bank, the deed is classified as a mortgage deed. This type of deed is executed at a notary public’s office and is considered an official deed. The property remains pledged as security for the loan until the obligation is fulfilled.
• Subdivision Property Deed: Subdivision deeds apply to properties divided among multiple individuals, with each portion having its own independent deed. These properties are owned by multiple parties, each of whom may share certain ownership rights.
• Endowment Property Deed: Under an endowment deed, the owner dedicates the property as a charitable or religious endowment. The Endowment Organization typically transfers usage rights to individuals for a fixed period, often up to ninety-nine years, in exchange for rent.
• Sealed Property Deed: Sealed deeds are secured by the Registration Office using a lead seal and string to certify their authenticity. This process confirms the validity and finality of ownership, leaving no ambiguity regarding property rights.

Frequently Asked Questions About Property Deeds and Their Types