Obtain a new form for the property title and a cadastral map at the Real Property Registry
Agency: Real Property Registry
A new title elucidation (statement of data relevant to the property under registration) is drafted. This is free of charge.
A competent team is formed to estimate the value of the property. This does not involve an inspection of the property. The team consists of the following persons:
- The Director General of the Real Property Registry of his representative
- The representative of the State Commission of Income Tax
- The applicant for survey or his representative
Procedure:
- A request is submitted to the registry manager to obtain new title elucidation
- The seller and the buyer must be present in person or their legal representative together
- Checking the seller record in the computer Database to identify if he was former official in the previous regime and if the property was inalienable
- Checking on computer whether there is any mortgage, encumbrances or not, then fix the information on the new deed title draft
- checking the IDs issuance for both the seller & buyer. (Proof of identity is obtained by sending a letter sent to the nationality authority – jinsiya)
- Ration card, Baghdad resident card, Iraqi Nationality Certificate, Jiseea, Land Deed. The cadastral map of the property should be in the file and send sent to the zone municipality
Note: sometimes the old file & documents of the property are missing from the archive and checking requires more time.
Time and cost: 7 days, IQD 5,000 (IQD 5,000 (copying Map and Deed))
Obtain an approval determining the type of the real property and zoning restrictions
Agency: Municipality
An approval to the transfer should be obtained from the Municipality Office, determining the type of the real property and the way to occupy it (zoning restrictions). It is quite easy to obtain this approval because it will not alter the way to use the property but only confirm that the way to occupy the property will be as per the purpose being set by the Municipality.
The Municipality will check for any inconsistency on the property, if there are any required charges have to be paid.
An investigation team from the Municipality will visit the property to confirm its status and if there were any changes done since its last investigation and in correlation with the old property map. Investigators are governmental employees only. Arrangement of the investigation team and fulfillment of the visit take 2-3 days. The new investigation report will be attached to the new cadastral certificate.
The Municipality will check all services charges owe by the property owner in order to be paid prior to the approval that the property is free from any outstanding charges, such as Electricity, Drinking water, waste water and road asphalting.
Unless the Seller have the receipt that the asphalting charges were paid, even it was done more than 10 years ago, he will have to pay about 2000 ID / meter length of asphalted road in front of the property, in addition of time delay.
After completion all requirements, Municipality will send the New Cadastral Certificate ( NCC) by mail to the Cadastre.
The overall time elapsed from receipt of the NCC by the municipality by mail – property investigation – pay all due charges until reception by the Cadastre by mail as well, the average time is 21 days.
A committee to visit the property for inspection to check if there is any changes or additions with reference to the original construction map, this will determine the amount of fines to be paid.
- Inspection fees 4000 IQD.
- Numeration fees 6000 IQD.
- Paving fees = the front of the property m2× 2455 IQD / m2.
- All outstanding fines should be paid
Time and cost: 21 days, IQD 10,000
Assessment of the property value by the Real Estate registry
Agency: Real Estate Registry
Upon receipt of the New Cadastral Certificate from the Municipality, a competent team (Real Estate Office committee) is formed by the cadastre (Real Property Registry Office) consisting of the following persons to estimate the current value of the property. There is fixed day for property evaluation of each area covered by the same property registry office.
- Representative of the real property registry office.
- Representative of the Province Main real property registry office.
- Representative of the state commission of income tax.
The evaluation team have regulations for the evaluation range of each land location depending on the degree of civilization, how close to the city center, type and level of the property building, how old it is, the type of roofing and finishing with endeavor of evaluation with the minimum price / meter square or higher. From the time the New Cadastral Certificate is received by the Real Estate Registry and the time the inspection appointment is confirmed, it will take approximately 3 days. The team will collect several cadastral certificates for several buyers, and leave to inspect them all at one time, so the time will depend on the availability of other buyers.
The inspection will take place, and the team will provide a report that will be used for the evaluation of the property. However, if the buyer objects to the estimate, then there is another inspection and a final report will be re-issued. All documents will then be sent to the Tax Authority once the report is final. This report will be used as a base by the Tax Authority to estimate the amount of taxes to be paid. Transmission of documents to the Tax Authority is done by mail.
Note: The buyer will provide transportation for the evaluation team and will be charged an amount between 10000-15000 Dinars. This is an unofficial cost. There is possibility to request a certificate showing that the property is free of mortgage and encumbrances from the Registry Office by a governmental authority only.
Time and cost: 10 days, no charge
Assessment of the property value by Tax Authorities
Agency: Income Tax Authority
The Seller or his representative must follow up on the receipt and measures in the Tax Commission Office. First, the Tax commission will check whether the property is occupied or not and compares this with information they have in their files.
Then both the Seller and the Buyer must obtain several tax clearances from other Tax Authorities offices. All documents are sent to the Tax Authority by mail. The time needed is 2 days on average for this step. The Tax Authority might or might not object to the evaluation of the Property Registry Office. If they decide to evaluate the property with higher price, the seller cannot object, and the tax calculation will depend on the new evaluation, whichever is higher.
The seller pays the Income Tax (Real Estate Ownership Transfer tax) for the property evaluation according to the following fee schedule (this amount is apportioned among partners if the land is owned jointly);
Income Tax paid (Real Estate Ownership Transfer tax) according to the following cumulative property values (in IQD):
- tax exempted first 0 to 50 million dinars;
- 3% (on next 50 to 100 million dinars);
- 4% (on next 100 to 150 million dinars);
- 5% (on next 150 to 200 million dinars); and
- 6% (200 million dinars and over).
Payment is made to the Property Registry Office (Real Estate Office) by a certified check from a named Bank (Governmental). The final Tax Cadastral Certificate will be sent to the Property Registry Office by mail.
Time and cost: 10 days, IQD 14,569,075.61
Income Tax is paid according to the following cumulative property values (in IQD):
- Tax exempted 0 to 50 million dinars;
- 3% (50 to 100 million dinars);
- 4% (100 to 150 million dinars);
- 5% (150 to 200 million dinars); and
- 6% (200 million dinars and over)
Apply for registration at the Real Property Registry
Agency: Real Property Registry
The buyer applies for registration and a new title at the Real Property Registry. Afterwards, the transaction process will be recorded in the official registers and the buyer will then be granted a new title of property on the same day.
The same section which opened the new cadastral document will calculate the amount of property transfer fees which is equal to % 3 of the property evaluation, Payment is made by certified check from either Named Governmental Bank or Named Private Bank. Payment can also be made in cash at the Property Registry Office.
Once payment is received, the Property Registry Office will issue a new Property Deed in the name of the Buyer, then the process is considered final. The Property Registry Office will later send the new ownership details to the Main property registration office. The registration fee, equal to 3% of the value of the property, is paid by means of an endorsed check to the account of the Real Property Registry before applying for registration.
Time and cost: 3 days, IQD 10,284,537.81 (3% of property value (Registration fee))
