The Iraqi legislator regulated the system of ownership of floors and apartments in buildings pursuant to Law No. (61) of 2001, issued on 08-01-2001 (issued by Revolutionary Command Council Decision No. 226 dated 23-12-2000).
This law was enacted to fill the legislative gap concerning multi-storey vertical construction (vertical condominium), which had spread in Iraqi cities due to increasing population density.
Legal scholars have pointed out that population growth and internal migration toward cities led to the spread of vertical buildings and created a need to regulate the concept of “joint ownership” in real estate composed of several floors.
rior to the issuance of this law, the Real Estate Registration Law No. (43) of 1971 contained some provisions related to joint ownership; however, these provisions were no longer sufficient to address modern disputes concerning common parts in buildings.
Accordingly, the Law on the Regulation of Ownership of Floors and Apartments No. (61) of 2001 was issued at the end of the year 2000 (and published at the beginning of 2001) with the aim of regulating the ownership of real estate units within a single building and the management of its common parts.
The explanatory memorandum of the law stated that its objective is “to regulate the provisions relating to the ownership of floors and apartments in buildings and their common parts, and to establish an owners’ association to manage them.”
The law detailed the rights and obligations of owners of floors and apartments in buildings. In this regard, Adnan Khalid Majid, a judge at the Rusafa Labor Court, stated in an interview with Al-Qadaa magazine:
“In the case of multiple owners of a single property, the exploitation of that property becomes more complex than if it were owned by one person alone. If there is a building composed of apartments or floors, and the building is divided among several owners such that each floor or apartment is privately owned by one or more persons, the Iraqi legislator has defined the rights and obligations of each of them through Law No. (61) of 2001, which set out in detail the rights and obligations of owners of floors and apartments in residential and commercial buildings.”
Basic Definitions
The law begins by defining the main terms (Article 1). It defines a “building” as a structure consisting of two or more floors (including the ground floor), constructed pursuant to a building permit issued by the competent authority. A “floor” is defined as each independent real estate unit, while an “apartment” is defined as each independent real estate unit forming part of a floor.
These definitions determine the scope of application of the law, limiting it to multi-storey buildings that can be divided into independent units. The law then authorizes (Article 2) the division of a building into independent floors or apartments and the registration of each unit in the name of its owner, in accordance with the provisions of the law.
Division of the Building and Registration of Units
Pursuant to the provisions of the Law on the Regulation of Ownership of Floors and Apartments in Buildings No. (61) of 2001, particularly Articles (3–6), the multiplicity of owners of floors or apartments within a building, with each owner holding separate ownership of their unit, legally results in the establishment of joint ownership among them in the land of the building and in the common parts and facilities designated for common use.
Common Parts and Facilities
In particular, these common parts include:
- Foundations
- Main walls
- Entrances
- Courtyards
- Ceilings and roofs
- Elevators
- Staircases
- Corridors and passageways
- Hallways
- Pipes and utilities
This excludes any parts located within the boundaries of the floor or apartment itself, unless otherwise stipulated in the title deeds.
Legal Nature of Common Ownership
The common parts are not subject to division.
No owner may dispose of their share in the common ownership independently of their floor or apartment.
Each owner’s share in the joint ownership is calculated in proportion to the value of their unit.
The walls or partitions separating two apartments are deemed to be jointly owned by the owners of those apartments. Each owner is entitled to use the common parts for the purpose for which they were designated, provided that such use does not prevent other owners from exercising their rights of use.
Regulation under the Real Estate Registration Law No. (43) of 1971
On the other hand, the Real Estate Registration Law No. (43) of 1971 regulates the procedures for the separation (subdivision) of floors and apartments and their registration.
Subdivision and Registration Procedures
Article (290) permits the subdivision of a multi-storey property into floors or apartments, provided that each unit meets the characteristics of an independent real estate unit.
Article (291) provides for the allocation of sub-numbers for the land of the building and for each subdivided unit.
Types of Ownership upon Registration
According to Article (292), ownership in the building after registration of the subdivision is classified into two types:
- Joint ownership of the land and the common parts and facilities.
- Independent ownership of each floor or apartment.
Establishment of Joint Ownership Rights
Pursuant to Article (293) of the Real Estate Registration Law No. (43) of 1971, rights of joint ownership in the land of the building and in the common parts and facilities are legally established through one of the following methods:
- By agreement of the partners, if there are multiple owners.
- By the consent of the owner, if the building is initially owned by a single person.
In all cases, the distribution of the shares of the owners of floors or apartments in the joint ownership shall be in proportion to the value of the construction at the time of registering the subdivision.
Registration of Joint Rights and Legal Guarantees in Subdivision and Unification
Paragraph (2) provides that joint rights shall be registered in the real estate records in favor of the owners of floors or apartments in their capacity as such, without recording the name of a specific floor or apartment owner individually.
This means that registration is carried out in a general and permanent manner for the common parts, considering them as ancillary rights attached to the ownership of the subdivided units.
Accordingly, the beneficiary of these rights automatically changes with the change of ownership of the unit, without the need to amend the joint rights register itself.
Formal and Substantive Guarantees under the Real Estate Registration Law
Pursuant to the provisions of Articles (294–297) and (303–304) of the Real Estate Registration Law No. (43) of 1971, the legislator has established important formal and substantive guarantees when subdividing floors or apartments and subsequently unifying them.
Stability of the Joint Ownership Register
The register dedicated to the ownership of the land of the building and the common parts and facilities is deemed a fixed and stable register that does not change in response to transactions affecting independent ownerships (such as sale, gift, or inheritance of units), in accordance with Article (294/1).
This ensures the stability of the registration of joint rights and eliminates the need to modify it with every transaction.
Legal Protection upon Destruction of the Building
If the building ceases to exist for any reason, the land of the building shall be re-registered under the same serial number assigned at the time of subdivision, in the names of all partners, based on the records of joint and independent ownership.
The names of the partners and their respective shares shall be determined according to what is established in the records, and the provisions of those records shall be transferred to the new register.
This mechanism preserves the legal positions and rights of the owners even after the destruction of the building, pursuant to Article (294/2).
Municipal Approval Requirements
As a general rule, the subdivision of a building into floors or apartments does not require municipal approval.
An exception applies to the subdivision of the ground floor into real estate units, which is subject to municipal approval in accordance with Article (295).
Technical Mapping and Boundary Determination
Registration of the subdivision must be based on a technical map specifying the shape, location, and area of each subdivided floor or apartment.
The map must indicate the areas designated for common use and state the height of each floor.
In addition, the boundaries of each subdivided unit must be determined from six directions through a formal inspection, as required by the circumstances, to ensure accuracy and prevent boundary disputes, pursuant to Article (296).
Application of General Subdivision Rules
The provisions governing subdivision and general partition set forth in the law apply to the subdivision of floors or apartments to the extent compatible with their nature.
Unification of Ownership
Unification of Apartments and Floors
The law permits the unification of ownership of apartments within the same floor, pursuant to Article (297).
It also allows the unification of all floors together with the land if ownership of all of them devolves to a single owner.
Legal Effects of Unification
In the event of complete unification, the building is restored to the original serial number of the land prior to subdivision, and all other sub-numbers are canceled, in accordance with Article (303).
Except for the cases expressly mentioned, unification is subject to the general unification rules stipulated in the law, insofar as required by the nature of unifying ownership of floors, pursuant to Article (304).
Legal Conclusion
The prevailing legal framework leads to the conclusion that subdivision establishes independent ownership of individual units, accompanied by mandatory joint ownership of the common parts.
It further imposes restrictions on the disposal of shares in joint ownership, prohibits their division, and clearly defines the mechanisms of registration, proof, and record-keeping in accordance with the Real Estate Registration Law.
Rights and Obligations of Owners
The rights and obligations of owners, pursuant to the provisions of Articles (7) and (8) of the Law on the Regulation of Ownership of Floors and Apartments in Buildings No. (61) of 2001, are as follows:
Obligation to Contribute to Common Expenses
Each owner is legally obligated to contribute to the costs of preservation, maintenance, management, and renovation of the common parts of the building.
The owner’s share of these expenses is determined in proportion to the value of the floor or apartment owned, unless a special agreement provides otherwise.
No owner may waive their share in the common parts for the purpose of evading the obligation to contribute, as this obligation is inseparable from ownership and arises from it by force of law.
Prohibition of Harmful or Unauthorized Acts
Any owner is prohibited from carrying out any act that would:
- Threaten the structural safety of the building
- Alter its form
- Change its external appearance
It is also prohibited to make any modification to the common parts without the approval of the owners’ association.
Exception: Permissible Improvements
An exception is made only where the modification:
Is carried out at the owner’s own expense, Leads to facilitating the use of the common parts, Does not alter their designated purpose, and Does not cause harm to the other owners.
This exception reflects a balance between the owner’s right to improve and the protection of the collective interest and stability of shared use.
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