Definitions of Legal Terms Related to Real Property
Specialized real estate terminology encompasses legal, technical, and financial concepts related to the purchase, sale, leasing, and management of property.
Familiarity with these terms is essential for professionals and stakeholders active in this field.
Ownership Right
Ownership consists of three fundamental elements: the right of use, the right of exploitation, and the right of disposition. Ownership is a legal relationship between property on one side and a person, whether natural or legal, on the other. On this basis, the owner may exercise any reasonable control over the property within the limits prescribed by law. In other words, ownership is a permanent right by virtue of which a person may exclusively possess property and benefit from all of its advantages in accordance with applicable laws.
Private Ownership
Private ownership refers to property held by natural or legal persons in a private capacity. Owners may use, exploit, and transfer such property within the framework of the law. Under Article 30 of the Civil Code and the principle of dominion, owners may exercise any lawful control over their property and undertake any legal acts in relation to it.
Public Ownership
Public ownership refers to property held by public legal entities, such as the State and municipalities, for the purpose of providing public services and administering national affairs. Such property is allocated directly or indirectly for public use. Because these assets belong to the public at large, they are classified as public property. The entities managing such assets do not have the unrestricted authority to transfer them as private property and may act only within the limits prescribed by law.
Usufruct Right
The right of usufruct is a branch of ownership created by agreement and is distinct from ownership itself. A usufruct contract does not transfer title to the property or its benefits but grants a non-owner the right to use and benefit from the property without charge.
In its specific sense, usufruct includes:
- Life usufruct: a right granted for the lifetime of the owner, the beneficiary, or a third person.
- Fixed-term usufruct: a right granted for a specified period, such as 3 years.
- Right of residence: where only the right to reside in a property is granted, either for life or for a fixed period.
Endowment Deed
An endowment deed is a document executed by the donor that specifies the endowed property, the donor’s identity, the location and characteristics of the endowed assets, the designated purposes, and the trustee responsible for administration.
Registration Number
A registration number refers to the official identification number assigned to a parcel of land and recorded in the land registry. It represents the legal identity of the property.
Possession
Possession refers to the physical and customary control exercised by a person over property with the intention of benefiting from it.
Mortgage Transactions
A mortgage is a contract whereby a debtor provides property as security to a creditor. The debtor is referred to as the mortgagor and the creditor as the mortgagee. Any transfer of mortgaged property that prejudices the mortgagee’s rights may constitute a mortgage-related transaction subject to legal challenge.
Sale with Right of Redemption
A transaction with a right of redemption is generally entered into to secure a loan. Unlike a mortgage, possession is not necessarily required for validity in such arrangements.
Types of Land
Land in Iranian law is classified into several categories, including:
- Dead land: land without prior development or cultivation.
- Developed land: land that has been cultivated or improved and remains in active use.
- Abandoned land: land that had previously been developed but has reverted to an undeveloped state.
- National land: forests, rangelands, and natural resources are declared public property of the State.
- Agricultural land: land used or suitable for agricultural production.
Agricultural Tenancy Right
Agricultural tenancy rights are recognized customary rights arising from leases, sharecropping, or authorized cultivation with the landowner’s consent. It is valid only where recognized by law, local custom, or contractual agreement.
Urban Development Plans
Urban development plans include comprehensive plans and detailed plans that regulate zoning, land use, building density, and urban expansion.
- A comprehensive urban plan defines general land use zones, including residential, commercial, industrial, and public service areas.
- A detailed plan provides more specific regulations regarding construction standards, building density, and land subdivision.
Building Permit
A building permit is a legal authorization issued by a municipality or other competent authority before construction. It includes details such as land use, building area, number of floors, density, registration number, and validity period.
Completion Certificate
The municipality issues a completion certificate upon completion of construction in accordance with the building permit and applicable regulations.
Where violations have occurred, resolution by the competent commission is required before issuance.
Expropriation for Public Interest
Expropriation for public interest is a legal mechanism that permits the State to compel the transfer of private property for public projects, subject to the payment of compensation. In compulsory acquisition, property is transferred from private ownership to the State or municipality without the owner’s consent, provided that legal requirements are met and fair compensation is paid.
Administrative and Quasi-Judicial Authorities
Certain specialized commissions and bodies are established by law to address disputes and regulatory matters related to land and construction.
These bodies operate outside the ordinary judicial system but are vested with the authority to issue binding decisions within their statutory jurisdiction.
Frequently Asked Questions Regarding Real Estate Terminology
Ownership right is a legal relationship between a person and property that allows the owner to use, exploit, and dispose of the property within the limits of the law. It includes the right of use, the right of exploitation, and the right of disposition.
Private ownership concerns property held by individuals or legal entities with the right to transfer and use it within the law. Public ownership concerns property held by the State or public institutions for public purposes and subject to statutory limitations.
Usufruct is a right granting a person the ability to use and benefit from property owned by another without acquiring ownership. It may be granted for life, for a fixed term, or in the form of a right of residence.
A registration number is the official land registry identification assigned to a property and serves as its legal identity.
Expropriation for public interest is the compulsory transfer of private property to the State or a municipality for public purposes, subject to legal procedures and compensation. What is ownership right and what does it include?
What is the difference between private and public ownership?
What is usufruct and what types exist?
What is a registration number in real estate?
What is expropriation for public interest?
