Nature, Conditions, and Legal Effects of Pre-Sale of Real Estate in Iranian and Canadian Law

Modern life in the present era, in the realm of contracts—as in many other fields—has led to numerous and complex phenomena. One manifestation of this is the phenomenon of construction and the pre-sale contracts associated with it. The sale of buildings, real estate, and apartment units before construction is one of the common challenges in today’s society, which depends on pre-sale or pre-construction contracts. The lengthy duration of construction projects and price fluctuations of building materials, particularly in light of current economic conditions, are among the major reasons for the expansion of pre-sale contracts in both Iran and Canada. This study, conducted using a descriptive-analytical method, aims to examine and identify the nature, conditions, and legal effects of pre-sale or pre-construction real estate contracts in Iranian and Canadian law. One of the findings of this research is that a pre-sale construction (real estate) contract, despite the absence of a sale at the time of its conclusion, can be considered equivalent to a sale. Compliance with the general conditions of transactions—namely, the intent and consent of the parties, their qualifications, the subject matter of the transaction, and the legality of the transaction—is essential.