The Effect of Iranian Land Administration System in Transactions Real Properties’ Security: In the Light of Public Confidence Theory

Abstract

The issue of security and stability of real properties’ legal situation is a political, economic, and social matter in most countries, including Iran. Disputes in this area along with its unpredictable verdicts are among the most complicated matters in each legal system. That is why the legislature is always expected to pass suitable and effective laws, in order to assure stability and security of the owners and transferees of real property rights. This requires the legislation and judicial system of each country to know the expected functions from land registration system as well as legal basics of registration regulations and managing land information.  Otherwise, the security and stability of real properties’ legal situation will not be ensured which will directly influence both the market of real property transactions and the economic growth. The paper attempts to explain the legal position of the fundamental theory of land registration system, so called public confidence theory, as well as its position in Iranian land registration system. This answers the question whether deeds and real property registration system in Iran is compatible with above mentioned theory, which provides the expected functions of the registration and manages accuracy of information contained in the system. In doing so, it examines the historical and theoretical basics of land registration system, showing –in turn—that in order to ensure legal stability and security in land transactions two basic functions are expected from land administration system: firstly it should provide tools to present valid and indefeasible information (information administration) and, secondly it has to legally protect the owner of registered right.(legal claims administration) Both functions could be realized within the framework of public confidence theory and its consequence. Reviewing Iranian registration law clearly shows that although this theory along with its results are not known in Iranian legal literature, the legislature has considered it when ratifying this law and the principles of this theory can be seen in different articles of Iranian registration law. However, lawyers and judges' lack of knowledge about the "basic framework of real property registration system" as well as "the independence of real property registration law from civil law system" has caused the relative regulations be practically interpreted in real property disputes without paying any attention to this theory and its principles. This prevents achieving the expected functions of the registration system. However, this paper concludes that through conceptual development of this theory as well as its recognition by the legal system, it becomes possible to achieve such functions.