عنوان مقاله [English]
Objective: the application and execution of regulations relevant to the title insurance in Iranian legal system for providing safe and secure real estate dealings in domestic law.
Method: Given the American law and practice of title insurance, we are analyzing the situation in Iranian legal system. Our method is autonomous legal doctrinal as well as experimental methodology in applying the foreign institution on Iranian legal system.
Findings: Contracts regarding the real estates are social sensitive dealings that require special and precise consideration of regulatory authorities in every legal system. So many of them secure this needs with compulsory registration. But some legal systems regard this mechanism inadequate for protecting individual rights. The insurance companies that has access to the registration records of lands, can insure the legal and factual status of real estates, e. g. soundness of the land, it’s deeds and certifications and to compensate land’s hidden defects at the moment of conclusion of the contract of sale of the land. So, it would be responsible for the land’s factual and legal defects and this would be proper for society and its legal system. Because of efficient consequences arising out of the legal protection of deeds & promotion of security for real estate dealings, some institutions are ready to cover the liabilities and compensation of these lands. Consequently, the legal system shouldn’t ignore the investment and economic development following from the title insurance and must emphasis on its importance and adopt proper rules for that purpose. There is no regulation of Title insurance in Iranian Legal system. But there are some provisions that would help us to adopt this system of protecting the rights and public policies.
Conclusion: There is no legal barrier to applying the title insurance regulations in Iranian legal system, but some factual matters should be eliminated from this institution, such as dealing and registering the real estate in practice that is not conform with economic and law principles in general. Legislators should prevail over the problem with legalizing the compulsory registration of deeds in real estate transactions and obliging the parties to refer to the lawyers. Adjacent to this the high legal authorities in the area of insurance industry should regulate these dealings with special terms and clauses for title insurance.
JEL Classification: G22, K11, K12, K13, K25