Rewritten Title: Navigating New Regulations: Tehran’s Real Estate Market Adapts to Digital Registration Systems
Article:
A significant regulatory overhaul in Iran’s real estate sector, aimed at formalizing property transactions, is currently reshaping the market dynamics in Tehran. The implementation of new laws and digital platforms is creating a period of adjustment for buyers, sellers, and industry professionals alike.
The Push for Formalization
The core of this transformation is the “Law Mandating the Official Registration of Real Estate Transactions” and the introduction of the ‘Kateb’ digital system. The primary goal of this legislation is to bring long-standing informal, paper-based agreements into the official and legal fold, thereby increasing the security and transparency of all property dealings across the country.
Under the new framework, real estate consultants initially prepare a free draft contract. The parties involved are then referred to a public notary office for the final, legally binding registration.
A Clash of Systems and Professional Roles
The transition, however, has not been without its challenges. A key issue is the existence of multiple registration platforms. While ‘Kateb’ is reserved for real estate consultants and notaries, other systems like ‘Khodnevis’ and ‘Melaak va Eskan’, overseen by the Ministry of Roads and Urban Development, are freely available to the public.
This multiplicity has led to confusion and a perceived diminishment of the traditional real estate agent’s role. Kianoush Goodarzi, Head of the Real Estate Consultants Union, acknowledged the law’s benefits in ending “decades of lawlessness in informal contracts.” However, he pointed to procedural gaps in its implementation.
“The bylaws do not seem to have considered all aspects,” Goodarzi stated. He highlighted a critical procedural flaw: while consultants prepare the initial draft, they are granted no legal authority for its final registration, effectively sidelining them at the most crucial step.
Notary Fees and a Regulatory Grey Area
A significant point of contention has arisen at the notary stage. Goodarzi reports that some notary offices are leveraging this regulatory grey area. “Most notary offices inform the transacting parties that the contract drafted by the real estate consultant has no validity,” he explained. The notaries then redraft the contract themselves and collect the entire transaction commission, with fees sometimes reaching tens of millions of tomans.
This practice, according to industry insiders, not only creates a financial burden on citizens but also represents a form of professional cross-over, where notaries are performing the duties traditionally associated with real estate consultants, but at a much higher cost.
Balancing Security and Efficiency
The government’s initiative is fundamentally aimed at enhancing the security of property transactions, a move that is expected to have positive long-term effects on the market’s stability. By moving all agreements into an official, state-supervised framework, the potential for fraud and legal disputes is significantly reduced.
As Tehran’s real estate market navigates these new procedural mazes, the focus remains on refining the process. The ongoing adaptation underscores a broader national effort to modernize key economic sectors, ensuring that new regulations achieve their intended purpose of creating a more secure and orderly market environment for all participants.