This article applies only to Iran.
Legally, property refers to anything that can be possessed or assigned to one or more specific persons. According to this definition, in order for something to be recognized as property, there is no need for an owner but rather it suffices that it be useful and able to be assigned to someone.
Properties are not necessarily material objects, but can rather be legal concepts such as right of exploitation, right to share, reputation credit, and intellectual property which also have economical value. According to article 11 of the civil law, properties are divided into 2 categories: moveable and immoveable.
According to article 12 of the civil law: “immoveable property refers to something that cannot be moved from one place to another, whether its establishment is intrinsic or due to human actions, in a way that its movement requires damage or defect to it or its place.” In simple terms, things that cannot be moved from one place to another, such as land, house, mine, tools and equipment attached to the ground and etc… are all considered immoveable property.
Immoveable property also has different kinds. Some immoveable properties are considered immoveable by nature. For example, the earth, and mines and their stones. Other objects are considered immoveable because they have become so due to human actions. Such as pipes installed in houses, or windows installed in walls and so on. All these things are considered immoveable as long as they are attached to an establishment or land. Once they are detached from the establishment, they are once again categorized as moveable property.
According to article 13 of the civil law: “moveable property refers to objects which can be moved from one place to another without causing any damage to it or its place.” Thus, any property that can be moved from its location to another without causing destruction to it or its place is considered moveable property.
Most objects and properties around us are considered moveable. Moreover, building materials such as stones and bricks which are provided in order to build the construction, or are detached from it due to destruction, are considered moveable as long as they are not used in the building.
In addition to these specific samples, all liabilities such as debts, price of products, and rents are also considered moveable property. This last category is called moveable ordinance which are in fact rights and interests whose subject matter and property are movable.
Determining a competent court to file a lawsuit:
According to article 11 of the Civil Procedure Act; anyone who wants a lawsuit must file a complaint at the court of the place of residence of the person against whom they are filing a lawsuit, but if the quarrel is related to immovable property, the petitioner must file the dispute at the place where the immovable property is located.
Arrest and seizure of property:
When the order of seizure of the property is issued and the property is moveable, the executor can easily seize and move the property to another location. However, this is not possible for immoveable property and therefore, it must be seized and removed from the person against whom the order has been issued in another way. Seizure of immoveable property is dependent on the registration status of the property at the Organization for Registration of Deeds and Properties. For instance, regarding registered immoveable property, the registration office where the immoveable property is located must be informed. Given that the property is registered under the convicted person’s name, the registration office records its seizure. In this case, seizing the property means that the owner cannot transfer it to someone else until it has been unblocked.
The legal fees are usually determined by the demanding person. This means that the person who is making the claim will determine their demand and the court will define the legal fees based on the calculated amount. However, concerning immoveable property, the court is not limited to what the demanding has requested, rather legal fees are determined by critics in each region based on the trading value of the property.
The important point which must be mentioned is that foreigners have legal restrictions in terms of owning immoveable property in Iran and cannot buy properties as easily as Iranians. Furthermore, the categorization of moveable and immoveable property depends on laws such as right of exploitation, right to share and non-commerciality of immoveable properties’ trades.
In case you have any questions, please contact our expert attorneys at Sarasa Law Office.