Nouraei & M. Mostafavi Law Offices – September 17.2024-Tehran- Iranian Civil Code, in its Section 13, deals with Agency (Vekalat in Farsi language). According to Article 656,” An agency is a contract whereby one of the parties appoints the other as his representative for the accomplishment of some matter.”. According to Article 660, “An agency can be general, and for the whole of the affairs of the principal, or limited to a certain matter.”. Article 661 states, ” If the agency is a general one, it will be concerned only with the administration of the principal’s assets”.
For many years, attorneys utilized powers of attorney with a general nature to manage all the affairs of the principal in various matters. However, according to a document published in the last few days, the procedure has changed. Consequently, In any power of attorney used to transfer the principal’s properties, the registration number of the property to be transferred should be specified.
Mr. Safdar Keshavarz, deputy in Properties and Cadastre Affairs of the State Organization for Registration of Deeds and Properties, in his circular letter Number 46894/1403 dated 1403/03/16 (June 5, 2024), has announced as stated here below:
To: Esteemed Director Generals of Deeds and Properties Registration of the Provinces
Subject: Manner of Admissibility of the general powers of attorney
Respectfully, it has been noted that in the case of a general agency, Article 661 of the Civil Code pertains only to the administration of the principal’s assets. Furthermore, according to Article 663 of the Civil Code, an attorney cannot exceed the limits of it’s power of attorney. Therefore, to prevent any potential invalid consequences and to facilitate the implementation of tasks outlined in the Comprehensive Law of Cadastre and its by-law, it has been deemed necessary to introduce the following change:
As of the date of this circular letter, for presenting the services and performing the registration matters requested by the esteemed attorneys, the registration number of the property subject to the agency should be mentioned in the power attorney that is presented. The esteemed directors general of the registration offices of the provinces shall supervise on good performance of such a crucial decision.
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