Eviction for Demolition and Renovation
2024-07-13
Legal Basis of the Petition for Eviction for Demolition and Renovation
Eviction for demolition and renovation arises in connection with commercial-property lease contracts that were concluded before 1997 (1376 SH) and are subject to the Landlord and Tenant Act adopted in 1977 (1356 SH). Under these contracts, the end of the lease term does not terminate the leasehold relationship (the relationship between landlord and tenant). Now, if the landlord intends to rebuild the leased property, they must file a petition for a judgment of eviction for demolition and renovation. A prerequisite for this eviction petition is that the owner must first obtain a demolition and renovation permit from the municipality. A request for eviction for the purpose of rebuilding is the easiest route to eviction with respect to commercial properties subject to business/goodwill rights (haqq-e kasb-o-pisheh), and, since the entire goodwill right is paid to the tenant, judges in these cases generally do not impose strict obstacles to eviction. After examining the owner's documentation, the court refers the case to a court-appointed expert to assess the amount of the goodwill right, and, once the expert opinion becomes final, the court issues a judgment for eviction of the property. In its judgment, the court gives the landlord three months to deposit the goodwill right. If the landlord fails to act within this period, the judgment becomes ineffective. The court also sets a period for the tenant, of not less than ten days and not more than two months, within which to vacate the property. The tenant's period begins running from the date the goodwill right is paid to the tenant or deposited with the court's account.
Parties to the Lawsuit
The landlord, or the property owner seeking eviction, must, as plaintiff, file the lawsuit against the tenant as defendant. If the tenant has, with the owner's permission, transferred the benefit of the property to a new person, the petition must be filed against the new tenant.
Competent Court
Although eviction lawsuits generally fall within the jurisdiction of the Dispute Resolution Council under the relevant statute, because this type of eviction is connected to property subject to key money (sarqofli) and goodwill rights, the competent forum is the court of the place where the property is located.
Method of Enforcing the Judgment
After the judgment becomes final and a writ of execution is issued, if the landlord pays the goodwill right within the period set out in the judgment, then, once the period set for the tenant has elapsed, the enforcement of judgments unit proceeds to evict the property.
Source: Property Litigation, by Hossein Eghdami.
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