Nature, Conditions, and Legal Effects of Pre-Sale of Real Estate in Iranian and Canadian Law
Keywords:
pre-sale contract, istisna, sale, legal effects, Construction order contractAbstract
Modern life in the present era, in the realm of contracts—as in many other fields—has led to numerous and complex phenomena. One manifestation of this is the phenomenon of construction and the pre-sale contracts associated with it. The sale of buildings, real estate, and apartment units before construction is one of the common challenges in today’s society, which depends on pre-sale or pre-construction contracts. The lengthy duration of construction projects and price fluctuations of building materials, particularly in light of current economic conditions, are among the major reasons for the expansion of pre-sale contracts in both Iran and Canada. This study, conducted using a descriptive-analytical method, aims to examine and identify the nature, conditions, and legal effects of pre-sale or pre-construction real estate contracts in Iranian and Canadian law. One of the findings of this research is that a pre-sale construction (real estate) contract, despite the absence of a sale at the time of its conclusion, can be considered equivalent to a sale. Compliance with the general conditions of transactions—namely, the intent and consent of the parties, their qualifications, the subject matter of the transaction, and the legality of the transaction—is essential.
References
Abhari, H., & Taghipour Darzi Naqibi, M. H. (2018). The commitment to pre-sale for construction and its enforcement in the Building Pre-Sale Law and a comparison with the Civil Code. Quarterly Journal of Private Law Studies, 45(1), 4.
Daroui, A. A. (2012). The pre-sale contract for buildings in the Building Pre-Sale Law approved on 24/5/2010. Quarterly Journal of the Faculty of Law and Political Science (University of Tehran), 42(2), 147-166.
Gharibe, A., & Masoudi, N. (2012). Examining the possibility of defining the apartment pre-sale contract in the context of the peace and sale contracts. Specialized Quarterly of Islamic Jurisprudence and Legal Foundations, 7(23), 135-147.
Ghavavati, J., Sokouti, N., & Hosseinzadeh, J. (2015). Enforcement guarantees for violations of substantive regulations of the Building Pre-Sale Law. Quarterly Journal of Judicial Perspectives, 71, 131.
Hosseinzadeh, J., & Sokouti, N. (2016). The nature and characteristics of the pre-sale contract for buildings. Quarterly Journal of Legal Excellence, New Series, 17, 37.
Katouzian, N. (1974). Specific Contracts (Vol. Volume 1). University of Tehran Publishing and Printing Institute.
Katouzian, N. (2008). Preliminary Course of Civil Law: Lessons on Specific Contracts (Vol. Volume 1). Ganj Danesh Library.
Kelly, L. (2016). Build-to-suit Leases: Pre-construction and Construction Issues (with Forms) (Vol. 32).
Khaniyan, S. A. A. (2008). The nature and legal effects of the housing pre-sale contract Master's Thesis, Tarbiat Modares University.
Mahdi Taleqan Ghaffari, E. N. (2018). The right of termination in the pre-sale contract for buildings and its comparison with the Civil Code. Quarterly Journal of Psychology and Behavioral Sciences in Iran, 13, 33-44.
Mertcan, I. (2016). Assignment of Contractual Rights and Its Impact on Arbitration Agreements. MUHF, HAD, C.22(1), 521-549.
Mohammadi Sam, H. M. S. H. (2012). The time of transfer of ownership in the Building Pre-Sale Law approved in 2010. Scientific Research Journal of Private Law, 9(2), 176.
Quan Gan, M. H. W. X. W. (2021). Contract Rescission in the Real Estate Presale Market. 69.
Reza Nik Khah, M., Salehi, M., & Akbari Arai, A. (2019). Transfer of contract in the Building Pre-Sale Law of 2010. Quarterly Journal of Private Law Research, 8(28), Fall 2019.
Shahidi, D. M. (2006). Collection of Legal Articles. Majd Publications.
Shahidi, M. (2012). Collection of Legal Articles. Majd Publications.
Shiravi, A. (1998). The termination of contracts in the event of the obligor's refusal to perform obligations in Iranian law. Journal of Qom Higher Education Complex, 1(1), 49-71.
Simiyeh Davarpanah Bordar, H., & Rahmani, H. (2022). The pre-sale contract for apartments in the Iranian legal system: requirements and essentials. Journal of Research and Islamic Studies, 4(34), Ordibehesht 2022.
Tabatabai Hisari, N. (2019). Foundations and Effects of the Property Registration System. Shareholding Publication.
Tabatabai, S. J. (2017). The Nature, Terms and Legal Effects of Presale or Pre-Construction Contracts of Building (Apartment). Journal of Politics and Law, 10(1), 228. https://doi.org/10.5539/jpl.v10n1p228
Tabatabai, S. M. S., & Kiai, A. (2014). Clarifying the legal nature of the pre-sale contract for buildings. Judiciary Legal Journal, 78(85), Spring-64.
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 Farhad Mortazavinejad (Author); Tayeb Afsharnia; Rahim Mohammadi Elami (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
