Lease of Immovable Property

Posted on Posted in Civil Law, Incoporating Papers

Lease of immovable property has long been a lucrative business and owners let their property to avoid loss of profit. There are even investors who buy property to increase their income through letting it. Several bodies of law in Iran concern the relation between parties to a lease contract. The multiplicity of laws in this area including Iran Civil Law, and lease laws of 1960, 1977, 1983, 2007, and the executive directives thereof, can result in disputes between tenants and landlords. Skillful legal management is necessary not only at the time of drafting the contract by including the necessary legal clauses in model contracts, but also at the time when a dispute arises. Mistakes may result in cumbersome loss to the interests of landlords or tenants. The most common disputes in this area are eviction of residential or commercial places, avoidance of lease contract, goodwill, and transference of interests, change of profession and moderation of rent.

There is a number of articles on this topic in Irans civil law. For instance, it is mentioned that the tenant shall not damage the property or make any change in it without landlords approval. It is also said that the tenant cannot let others us the property unless he gains landlords agreement. Lease of immovable property mostly refers to leasing houses and apartments which is an important issue in today`s life. The related law articles mainly concern probable disputes that may occur between tenants and landlords. 

Leasing contracts are in different forms. They are usually concluded based on a monthly payment and a definite amount of pledge. It means that the tenant shall pay a sum monthly (for example 200$) and at the time of conclusion, he pays a certain amount ( 1000$ for instance) as a pledge so he can get it back when the contract comes to an end. All these amounts are negotiable and vary from time to time and town to town. Some leasing contracts only include pledges and some others only monthly payments. It depends on the land and landlord and other conditions.

FAR Law Firm

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