# Selling or mortgaging property in Baghdad and the other governorates not organised in a region: the real estate tax step before registration

Author: Othman Al-Juboori

اقرأ بالعربية

Selling or mortgaging property in Baghdad and the other governorates not organised in a region: the real estate tax step before registration

A real estate disposition is only concluded by registration at the Real Estate Registration Department (Real Estate Registration Law No. 43 of 1971, Article 3). Before registration is completed, a sale or mortgage file is sent from the Real Estate Registration Department to the **real estate section of the tax branch** within whose area the property lies. The section checks real estate tax debts, stamps the file and returns it for registration. This is the process described in the "Guide to Real Estate Tax Provisions" published on the General Commission for Taxes website.

Othman Al-Juboori, Iraqi lawyer, expert in Iraqi labour law, Member of the Iraqi Bar AssociationIraqi lawyer, expert in Iraqi labour law

Short answer: A real estate disposition is only concluded by registration at the Real Estate Registration Department (Real Estate Registration Law No. 43 of 1971, Article 3). Before registration is completed, a sale or mortgage file is sent from the Real Estate Registration Department to the real estate section of the tax branch within whose area the property lies. The section checks real estate tax debts, stamps the file and returns it for registration. This is the process described in the "Guide to Real Estate Tax Provisions" published on the General Commission for Taxes website.
Who this is for
An owner selling or mortgaging property in Baghdad, Basra or another governorate not organised in a region.
A buyer (individual or company) who wants to know why the file stops at "the tax".
A company buying or mortgaging property that needs the order of steps before signing.
The Kurdistan Region follows a different route: service page MOJ-08 lists a property tax clearance among the conditions for registering a sale. See the real estate section of our Erbil page.
1) Legal framework in brief
Real Estate Registration Law No. 43 of 1971: a disposition is only concluded by registration (Article 3). A written agreement between seller and buyer made outside the Real Estate Registration Department does not transfer ownership.
Real Estate Tax Law No. 162 of 1959, as amended: the basis cited in the Commission's guide. Within the Commission, the Real Estate and Vacant Land Section oversees its application, together with Vacant Land Tax Law No. 26 of 1962 and Real Estate Rent Law No. 87 of 1979 (section page on the Commission's website).
We do not state tax rates or amounts here; they are calculated per property at the competent tax branch.
2) Documents listed in the Commission's guide for a transfer of ownership
The title deed.
The owner's civil status ID.
The housing card.
An electricity bill.
If acting under a power of attorney: the agent's civil status ID and the power of attorney.
This is the list as published in the guide; for each file we confirm which documents the department actually requires.
3) What happens in the real estate tax section?
According to the guide, the file is submitted after it arrives from the Real Estate Registration Department to the head of the section, and passes through:
The computer unit: to confirm the owner is not on the list of persons whose property is attached.
The basic real estate tax clerk: checks the property's page in register W/5A; any debt is paid before the file continues.
The area inspector: inspects the property for changes or subdivisions.
The additional tax clerk: states the taxpayer's position on additional real estate tax; any debt is paid.
The section auditor: audits the file; the head of the section signs it and it returns to the Real Estate Registration Directorate.
If the inspector finds subdivisions or changes, he sends a report (W/27) to the competent assessment committee. Vacant plots follow a similar "vacant land tax" stamp: the inspector confirms the plot is free of any structures, and the name in the vacant land register is transferred to the new owner after the property is registered in their name.
The guide says this stamp applies to disposition transactions, including sale, mortgage, consensual division and gift.
4) Objecting to an assessment
According to the guide, if the taxpayer or the tax authority disagrees with the assessment committee's decision, either may object to the audit committee, and then against its decision to the Real Estate Tax Board, within the legal period of 30 days from notification. The guide sets further conditions for objections, which we review for each file.
5) Where is the file handled?
Baghdad: the General Commission for Taxes has a network of branches in Baghdad; the competent one is the branch covering the property's area.
Basra: the Commission has branches in Basra (see our Basra page, section 4).
Kurdistan Region: sales are registered with the property registration directorates of the KRG Ministry of Justice, with a property tax clearance among the conditions (MOJ-08). See Erbil, Sulaymaniyah, Duhok and Halabja.
The Commission's website also lists a separate "Real Estate Transfer Profits Section" that oversees joint inspection committees with the Real Estate Registration Directorate; that tax is outside the scope of this article.
6) Checklist before signing
A recent registration copy from the Real Estate Registration Department: owner, plot, area and registered annotations.
Any basic or additional real estate tax debt? (Paid before the stamp.)
Anything built or subdivided since the last assessment? (May be referred to the assessment committee.)
Is the seller subject to an attachment? (Checked by the computer unit.)
The five documents above, and the wording of the power of attorney if the sale is by proxy.
If the buyer is a company: do its bylaws allow it to own real estate? (An express condition in the Kurdistan Region, MOJ-31.)
How we work on a sale or mortgage file
We review the registration copy, powers of attorney and documents before signing, and plan the sequence between real estate registration and the real estate tax section. We serve clients in Baghdad, Basra and the other governorates from our Baghdad office (Al-Yarmouk). See also Real estate and property management and Company or branch premises: lease and title checks.
FAQ
Q1: Why does a property sale go to the tax office?
Because the General Commission for Taxes guide makes the real estate tax stamp part of disposition transactions (sale, mortgage and others): the file is sent from the Real Estate Registration Department to the real estate section of the tax branch, debts are checked and the file is stamped, then it returns for registration.
Q2: What documents are needed?
The guide lists: the title deed, the owner's civil status ID, the housing card, an electricity bill, and the agent's civil status ID and power of attorney when acting by proxy.
Q3: Is a sale contract signed by both parties enough?
Not to transfer ownership. A real estate disposition is only concluded by registration at the Real Estate Registration Department (Law No. 43 of 1971, Article 3).
Q4: Are the steps the same in Erbil?
No. In the Kurdistan Region, registration is with the property registration directorates of the KRG Ministry of Justice, and service page MOJ-08 lists a property tax clearance among the conditions. Details are in the real estate section of our Erbil page.

General information, not legal advice.

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