Legal and Tax Issues of Pre-Contract Properties and Suburban Gardens in Shiraz in 2025 / Iran

In recent years, especially with the growth of urbanization and rising land prices in central areas, the purchase and sale of pre-contract (Qoulnameh) properties and gardens on the outskirts of Shiraz have become increasingly popular. Many investors and gardening enthusiasts are attracted to these properties due to their more affordable prices and the prospects of urban development. However, these properties face numerous legal and tax challenges, and lack of awareness can lead to serious problems for both buyers and sellers.

Consulting a Vakeel Melki Shiraz is essential to protect your rights and investments in this high-risk market.Common Legal Issues with Pre-Contract Properties in Shiraz
Pre-contract properties refer to those for which no official deed has been issued in the buyer’s name, and only an informal contract or agreement exists between the parties. This situation leads to several legal problems:

  • Inability to Officially Transfer Ownership: Until the property has an official and transferable deed registered with the authorities, the buyer cannot legally prove ownership. This can cause major issues in case of disputes or the seller’s death.
  • Risk of Fraudulent Sales: There is a significant risk of the same property being sold to multiple buyers or being sold by someone other than the actual owner. Verifying ownership and preventing such fraud requires careful document review and consultation with a Vakeel Melki Shiraz.
  • Lack of Construction and Utility Permits: Pre-contract properties often lack construction permits, completion certificates, or legal utility connections (water, electricity, gas), making practical use of the property difficult.
  • Inheritance and Succession Issues: If one party passes away, transferring rights and ownership of a pre-contract property to heirs can be complicated, time-consuming, and costly, as proving ownership in court is challenging.

Specific Challenges of Suburban Gardens in Shiraz
The gardens on the outskirts of Shiraz are highly attractive due to their natural beauty and favorable climate. However, they also face unique legal issues:

  • Change of Land Use: Many of these gardens are located on agricultural or natural resource lands, and any change of use or construction requires special permits from the Agricultural Jihad and other relevant authorities.
  • Non-Compliance with Urban Plans: The property may be located within the scope of urban development projects, giving the government the right to acquire or demolish it. Lack of awareness can put the buyer’s investment at risk.
  • Boundary Disputes: The borders of gardens and agricultural lands are often not clearly defined, leading to severe disputes with neighboring owners. Using official experts and consulting a Vakeel Melki Shiraz is crucial to resolve these issues.
  • Shared Ownership Problems: Many gardens are jointly owned by several individuals, and selling or transferring shares without the consent of all owners can create multiple legal complications.

Tax Issues for Pre-Contract Properties and Suburban Gardens in Shiraz in 2025
In recent years, the government has implemented stricter tax laws to regulate the real estate market and prevent speculation. These include transfer taxes, value-added tax, taxes on vacant homes, and taxes on properties without official deeds. In 2025, enforcement of these laws in Shiraz, especially for gardens and pre-contract properties, has intensified.

  • Transfer Tax: Even for properties without official deeds, the government demands transfer tax based on the pre-contract and informal documents. Failure to pay this tax can prevent the official registration of the transaction.
  • Vacant Home Tax: If a purchased garden or property remains unused for a long time, it will be subject to vacant home tax, increasing the owner’s costs.
  • Rental Income Tax: If the garden or property is rented out, the income is taxable. Failure to declare this income can result in heavy fines.
  • Document Discrepancies: If there is a difference between the area stated in the pre-contract and the actual property, the tax office may demand higher taxes or initiate further investigations.

Practical Solutions and Recommendations for Buyers and Owners

  • Thorough Document Review: Before any transaction, have the property or garden documents reviewed by a Vakeel Melki Shiraz and an official expert, and compare them with the actual property.
  • Official Inquiries: Check the registration status, land use, and whether the property is included in urban or natural resource plans with the municipality, land registry, and Agricultural Jihad.
  • Drafting Precise Contracts: Avoid informal and handwritten agreements. Always prepare a detailed contract with the help of a Vakeel Melki Shiraz to ensure legal recourse in case of disputes.
  • Dispute Resolution Clauses: Clearly specify dispute resolution methods, arbitration, and tax cost-sharing in the contract.
  • Paying Relevant Taxes: Ensure all taxes are paid before transfer to avoid future obstacles.
  • Obtaining Official Deeds: The owner or buyer should promptly pursue obtaining an official deed to secure ownership against third parties and government authorities.

The Role of Vakeel Melki Shiraz in Pre-Contract Property and Garden Transactions
Vakeel Melki Shiraz with experience in real estate cases and knowledge of current regulations can play a vital role at every stage—from document review to contract drafting and handling registration and tax matters. Their involvement reduces legal and financial risks and, in case of unforeseen disputes, protects clients’ rights and prevents financial loss and wasted time.

Conclusion and Final Advice
Pre-contract properties and suburban gardens in Shiraz, despite their economic appeal and pristine nature, carry significant legal and tax risks. Awareness of these challenges and consulting a Vakeel Melki Shiraz is the best way to protect your investment and prevent legal and financial problems. Always thoroughly review documents and the legal status of the property before buying or selling, pay all relevant taxes, and draft precise, professional contracts to invest with peace of mind.


For the full article in Persian, please visit the following link: Persian text

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