The Iraqi Federal Court of Cassation has clarified that a valid agreement to purchase a residential unit within an investment project does not automatically enable the purchaser to compel registration of the property.
Background
A purchaser paid for and received a residential unit in an investment project. The developer did not provide the property deed or complete the transfer, and the purchaser sought a court order allowing compulsory registration.
Court’s Findings
The Court accepted that the agreement was valid within the investment framework. However, contractual validity did not replace the mandatory procedures for registering real property or allow registration without the seller’s participation.
Where the seller refuses to complete registration, the purchaser may seek termination and compensation if the legal requirements are satisfied.
Practical Implications
Purchasers should investigate ownership of the project land, the scope of the investment licence, the developer’s authority to sell, the contractual registration mechanism and the remedies available if title is not transferred.
Conclusion
Possession, payment and contractual validity do not necessarily produce registered ownership. Investment housing contracts should deal expressly with title transfer, deadlines, guarantees and remedies.