Challenges of the Absolute Invalidity of Official Documents in Real Estate Transactions in Iran's Legal System with an Emphasis on Good Governance

Following the Islamic Revolution in Iran, Islamic principles became integral to the country's legal system. a notable principle was that the validity of transactions did not depend on their registration, which rendered Article 22 of the Registration of Documents and Real Property Act ineffective. However, as societal needs evolved, authorities recognized the necessity of mandatory registration for real property transactions. Legislative efforts aimed at reconciling Islamic jurisprudence with contemporary needs culminated in the draft law mandating official registration of real estate transactions. This research employs a descriptive-analytical approach to examine the challenges associated with informal documentation in real estate transactions across four key domains including, economic, legal-judicial, governance, and social factors. The study highlights the negative impacts of relying on informal documentation and underscores the importance of formal documentation for both individuals and society. It further defines good governance, listing eight criteria including, participation, rule of law, transparency, responsiveness, consensus orientation, equity and inclusiveness, effectiveness and efficiency, and accountability. The evaluation of three specific laws—the "Law on Facilitating the Formalization of Official Documents," "Article 62 of the Law on Permanent Provisions of the Country's Development Plans," and the "Draft Law on Mandatory Registration of Real Estate Transactions"—reveals deficiencies in each. The research concludes that mandatory official registration of transactions is crucial. Transactions documented informally should either be invalidated or deemed inadmissible against third parties. Additionally, the study proposes governance models based on these findings, advocating for an integrated approach to ensure the proper functioning of the legal system and to meet the evolving needs of society. By mandating official registration, the legal framework can better protect property rights, reduce disputes, and enhance overall societal trust in legal processes.