Clarification of the Legal Character of the Building Construction Short Sale Law

The civil law for the short sale of constructed edifices, which can be seen in light of support in favor of the advance purchaser, was passed by the Islamic Legislative Council of the Islamic Republic of Iran in the month of Day 1389 (A.H.) and subsequently gained the approval of the Guardian Council. From the very beginning the legal character of the legislation, especially with regard to its first constituent article, proved highly controversial. The present paper, aiming to clarify the legislative character of this law, scrutinizes these issues and in the course of disputing the necessity of the reception of the total amount due in concordant transaction, reaches the final conclusion that the law is harmonious and in accordance with such transaction, this being conditioned by the presupposition that the contract observe the first article of the legislative law and state in writing that the edifice under agreement be transferred into the possession of the purchaser either “from the beginning,” “during the course of construction” or “after the completion of the edifice.” In the first instance the transfer will be unconditionally complete; in the second instance the transfer will be in a state of conditional pending and in accordance with the number of installments; and in the final instance the transfer will be in a state of conditional pending completed after the payment of the final installment.