Sale of Another Person’s Property and Everything You Should Know

Sale of Another Person’s Property and Everything You Should Know

The sale of another person’s property refers to offering or transferring movable or immovable property by a person who is not the lawful owner and who proceeds without the permission or consent of the true owner. In Iran’s property market, due to complex documentation and long-standing irregularities in some transactions, individuals may unknowingly sell assets that legally belong to someone else. Such conduct is not only socially and ethically improper, but is also treated as a criminal offense under Iran’s penal framework.

Why Is This Topic Important?

Addressing the sale of another person’s property is important for two principal reasons:

1. Protection of ownership rights: Ownership is a fundamental right protected under Iran’s legal system, including its constitutional principles. When someone sells another person’s property without authorization, the owner’s rights are infringed, and the transactional order is disrupted.
2. Prevention of real estate fraud: With rising property prices and increased investment in land and buildings, incentives for unlawful sales have expanded. Legal education for buyers and clear guidance on identifying reliable transactions can meaningfully reduce property disputes and criminal complaints.

This article first examines the legal definition of the offense. Then the elements required for its realization are explained, followed by an outline of the applicable penalties, so the reader fully understands the criminal consequences of this conduct.

The Legal Definition Under Iranian Law

In Iranian law, the offense commonly discussed as the sale of another person’s property is addressed through specific legislation, including the single article law concerning the handling of transactions and contracts relating to property (adopted in 1350 SH), and it is also referenced in connection with legislation governing aggravated punishment for corruption-related crimes.

Under Article 1 of the 1350 SH law, any person who sells movable or immovable property belonging to another while presenting themselves as the owner or as the owner’s lawful representative, or who demands or receives the subject matter or consideration from the owner or lawful representative, may be sentenced to imprisonment from six months to two years, or a monetary penalty equal to one to three times the value of the property sold.

This definition highlights several key points:

• Scope of property: it covers both movable property (such as vehicles and household items) and immovable property (such as land and buildings).
• Ownership standard: the seller must be the registered owner or a lawful representative of the owner, such as an authorized attorney. Otherwise, the act may be criminal.
• Relevant conduct: selling, demanding, or receiving the transaction price or related consideration in the context of an unauthorized transfer.

Understanding this definition is the first step toward a precise analysis of the elements and penalties discussed below.

Elements of the Offense

For criminal liability, three elements must generally be established: the legal element, the material element, and the mental element. In this offense, these are typically described as follows:

1. Legal element: The offense is criminalized under Article 1 of the 1350 SH property transactions law and related provisions referenced in the penal framework.
2. Material element: This includes the act of sale, such as signing a sale agreement or contract, as well as the demand or receipt of the price or consideration. Even if no payment is ultimately received, the act of entering into a sale contract for property that belongs to another may satisfy the material element because it reflects the intent to create the sale.
3. Mental element: 
   • General intent: the seller’s awareness that the property belongs to another.
   • Specific intent: the intention to deceive the buyer or the owner to obtain a benefit or effect an improper transfer unlawfully.

In practice, proving the mental element is often the most difficult part, because it requires demonstrating knowledge and intent. For this reason, notary offices and relevant registration processes are expected to perform careful verification of ownership documents to reduce the risk of such offenses.

The Legal Basis

The legal basis of the offense is grounded in statutory rules enacted by the legislature. The central provision commonly cited is Article 1 of the 1350 SH law governing transactions and contracts relating to property.

In addition, legal texts and practice may refer to supplementary rules, including provisions that address aggravating circumstances, for example, where public property is involved or where the act is committed through abuse of official position. These references are generally used to justify stricter sentencing and to strengthen deterrence.

How the Offense Is Committed in Practice

The material conduct associated with this offense may appear in several forms, including:

• Executing a sale contract or sale agreement: Even if the contract is not executed in a notary’s office and is written privately, the act can still be treated as a sale for criminal analysis.
• Demanding or receiving the purchase price: Encouraging the buyer to pay, receiving funds, or issuing receipts can strengthen the evidentiary basis of the offense.
• Attempting formal registration using false or incomplete documents: Where a person attempts to transfer registered title using forged documents or improper representations, the matter may become more serious and may involve additional offenses.
• Taking steps toward transfer formalities, Such as attending a notary office, obtaining municipal clearances, or pursuing other steps normally associated with a lawful transfer, when done without ownership authority.

Because this conduct can severely harm the true owner and impose substantial financial losses on the buyer, careful factual evaluation of the material element is essential in criminal proceedings.

General Intent and Specific Intent

The mental element is often assessed through two layers:

• General intent, meaning knowledge of non-ownership: The seller must know that they are selling property that is not legally theirs. Knowledge may be inferred from circumstances, documentation, prior warnings, or the seller’s own statements.
• Specific intent, meaning intent to deceive for unlawful gain: This is established where the seller deliberately misleads the buyer or the owner to obtain money or to facilitate an unlawful transfer, for example, by using forged documents or false statements about registration status.

Courts often rely on circumstantial evidence such as messages, written correspondence, witness testimony, expert reports, and transaction patterns to infer intent.

Conditions for Realization of the Offense

Two conditions are commonly treated as essential:

1. Lack of lawful ownership or authority: The seller must truly lack the right to transfer the property, meaning they are neither the owner nor a valid legal representative with authority to sell.
2. Absence of valid consent by the true owner or lawful representative: If the owner has not given legally valid consent, and the seller lacks proper authority, the sale can fall within the criminal framework.

Additionally, the conduct must involve an actual sale or at minimum a transaction step that reflects intent to create a sale. In practice, even agreements that purport to transfer ownership rights can expose the non-owner to legal risk when executed.

Distinguishing This Offense from Fraud

Although both the sale of another person’s property and fraud are financial crimes, they differ in structure:

• Sale of another person’s property: The core issue is the transfer of property belonging to someone else without authority. It focuses on the unauthorized sale itself, and it does not always require complex deceptive methods beyond presenting oneself as the owner or representative.
• Fraud: Fraud typically requires proof of deceptive means and trickery used to obtain property or benefit unlawfully. The deception element is central, and the property involved may even be owned by the perpetrator, depending on the form of deceit and the outcome.

In legal practice, accurate classification depends on the facts of each case and the specific evidence of deception, authority, and ownership.

Civil Consequences for the True Owner

When such a sale occurs, the primary harm is suffered by the true owner. Civil consequences commonly include:

• Interference with ownership rights: Unauthorized transfer may prevent the owner from using, leasing, selling, or otherwise exercising lawful rights over the property.
• Need to file a civil claim to invalidate the transaction: The owner may need to pursue a civil action seeking to invalidate the unlawful transaction and restore the prior legal status.
• Right to claim damages: Depending on circumstances, the owner may seek compensation for losses, including litigation costs and other financial harm.
• Complications in subsequent transfers: If the property is transferred to other parties, the legal situation can become complex, potentially resulting in multiple lawsuits.

Prompt action often increases the chance of preventing further registration changes and minimizing broader transactional harm.

Filing a Criminal Complaint

The owner or any person with a legitimate interest may file a criminal complaint against the alleged seller. A typical process includes:

1. Collecting evidence: Such as ownership documents, the disputed contract, payment records, registration inquiries, and witness information.
2. Submitting a complaint to the competent prosecutor’s office: Usually, in the jurisdiction where the offense occurred, citing the relevant legal basis and requesting criminal prosecution, protective measures, and related relief where available.
3. Preliminary investigation: The prosecutor’s office may conduct inquiries, summon parties, request registration records, and collect witness testimony.
4. Indictment or dismissal: If evidence is sufficient, an indictment is issued, and the case is referred to the criminal court. Otherwise, the matter may be dismissed.

Early criminal action can also support interim measures to prevent further transfer activities while the case is under review.

Competent Authorities and Criminal Procedure Stages

Criminal handling commonly follows these stages:

• Public Prosecutor’s Office: Preliminary investigation, evidence gathering, and issuance of procedural decisions.
• Criminal Court: Substantive review after indictment, hearings, and issuance of a first instance judgment.
• Appeal Court: Review of the first instance judgment within statutory deadlines.
• Enforcement stage: Execution of final penalties through the competent enforcement authority.

The precise pathway may vary depending on the charge classification and applicable procedural rules.

Penalties

Penalties commonly cited for this offense include:

• Imprisonment ranging from six months to two years.
• Monetary fines equal to one to three times the value of the property sold.
• Supplementary sanctions in certain circumstances, such as restrictions on engaging in real estate-related activities for a defined period.

Where the conduct is accompanied by additional offenses such as document forgery or breach of trust, sentencing may be aggravated under relevant provisions.

Alternative Sanctions and Mitigation

In some cases, courts may consider alternative sanctions or mitigation based on factors such as:

• First-time offending status.
• limited harm in value or impact.
• genuine remorse and restitution before final judgment.
• cooperation with investigative authorities.
• absence of a relevant criminal record.

However, where the act involves forged documents, organized conduct, or abuse of official position, mitigation is less likely to be applied.

Recent Developments and Administrative Measures

In recent years, Iranian legal and judicial systems have increasingly emphasized electronic verification, registry inquiries, and more structured case tracking in property-related matters. These measures are aimed at reducing the space for unauthorized transfers and improving prevention, detection, and deterrence.

Invalidation of the Transaction and Return of Property

One of the central outcomes following confirmation of an unauthorized sale is invalidation of the transaction and restoration of the property to the true owner. In practice, this often involves:

• a civil lawsuit seeking invalidation of the transaction.
• parallel criminal proceedings that may support interim measures preventing further registration activity.
• registration corrections after final determinations.
• claims for damages that are legally supportable.

Practical Prevention Strategies

Effective prevention typically requires a combination of buyer diligence, institutional verification, and professional support, including:

• obtaining official ownership and encumbrance inquiries before signing.
• using legal counsel to review documents and transaction structure.
• avoiding informal and handwritten agreements for significant assets.
• recognizing red flags such as unusually low prices, missing documents, and pressure to pay quickly.
• Prompt reporting of suspicious conduct to competent authorities.

Practical Legal Guidance: If You Face This Situation

Key points to keep in mind include:

• Understand that lawful ownership depends on a valid title and a legally recognized authority.
• Act promptly: to obtain inquiries and protect the property from further transfers
• Use professional legal assistance to assess evidence and choose an appropriate strategy.
• Pursue civil and criminal routes in parallel where appropriate: to increase effectiveness.
• Seek restitution and damages where supported by evidence and law.

In a volatile and high-risk property market, these steps can significantly reduce harm and improve outcomes if an offense occurs.

Frequently Asked Questions about the Sale of Another Person’s Property and Everything You Should Know