Contradictory Legal Measures Push Real Estate Market into Gridlock

After the ousting of the Assad regime, ownership transfer processes came under a set of legal restrictions that severely hindered property owners’ ability to manage their assets. Although some of these restrictions were partially lifted, the real estate sector continues to suffer from complex regulatory constraints imposed by the Ministry of Justice, the Directorate of Real Estate Affairs, and the Bar Association. These constraints have negatively affected the market for buying and selling properties and led to the spread of informal practices for contract documentation.

The restrictions are presented as measures to regulate the real estate market and protect it from manipulation and fraud, but they also appear to serve as a political tool aimed at controlling and redistributing property based on new considerations. This article analyses the legal and political decisions and their impact on property rights and the future of the real estate sector in Syria.

Bar Association

On January 7, the Bar Association issued a circular restricting the issuance of judicial powers of attorney related to lawyers’ representation. The circular excluded from the powers of attorney the authority to acknowledge sales, property clearance, donations, and property waivers. 

A judicial power of attorney is a document issued by an individual to a lawyer before a representative of the Bar Association’s Agency Office, authorising the lawyer to represent them in court with specific powers, such as acknowledging the sale of a particular property. This type of power of attorney is limited to lawyers and enables them to pursue legal proceedings. It differs from a notarised power of attorney, which is issued before a notary public and allows the holder to conduct transactions across all official departments.

On February 12, the Bar Association issued a new circular permitting the issuance of powers of attorney for property sales, purchases, waivers, and transfers of ownership, citing its commitment to facilitating legal procedures related to real estate transactions. The Association explained that this decision was made based on its legal authority and a review of the evolving legal situation. It also emphasised the need to verify all supporting documents when issuing such powers of attorney to prevent legal fraud and violations of public regulations. This decision reinstated lawyers’ authority to represent their clients in these types of transactions.

Directorate of Cadastral Affairs

On January 21, the Directorate of Cadastral Affairs issued a circular prohibiting the registration of any action that would create, transfer, or modify any real property right, including placing a legal notice of a claim. As a result, it became legally impossible to execute any sale or ownership transfer through courts or real estate registries. This is because claims to confirm sales require a legal notice to be placed on the property record in the real estate registry, which is no longer possible under this directive. The directorate stated that this measure would remain in effect until coordination with relevant authorities regarding the next steps was completed.

On February 18, the General Directorate of Real Estate Affairs issued a new circular allowing the documentation of certain real estate contracts and permitting the placement and removal of legal notices, provided that the authenticity of submitted documents is verified. A legal notice is a precautionary measure ordered by the civil court handling a case, whereby the court sends an official request to the land registry to mark the property record and notify third parties that the property is under legal dispute and may be transferred to another party.

However, the circular did not permit the registration of property sale contracts, which means that ownership transfers remain legally impossible. It is worth noting that certain transfers of ownership may still be documented directly at the Real Estate Documentation Office through a direct sale procedure. This process involves drafting a standardised contract, attaching a property record extract and a financial clearance certificate, then recording it in the daily ledger at the land registry before undergoing review. The seller and buyer then appear before the head of the documentation office to acknowledge the sale and confirm receipt of payment.

On the other hand, the circular made no reference to unregistered properties, which can still be sold using standard sales contracts, with the option to have such contracts notarised before a notary public.

Ministry of Justice

Right after the fall of the regime, in mid-December 2024, the Ministry of Justice issued a directive suspending all court operations, but later allowed courts to gradually resume activity. The Ministry instructed courts to suspend proceedings on real estate-related cases, such as property sale confirmation claims, and to refrain from issuing rulings. It justified this measure as a means to prevent the sale of properties belonging to individuals implicated in crimes and violations during the Assad era, as such properties may later be subject to confiscation. The directive also aimed to combat fraud and manipulation in property ownership and restructure the functioning of real estate affairs offices.

Subsequently, on January 30, the Ministry of Justice issued Circular No. 2, allowing courts to resume hearing pending real estate cases and to accept new claims related to property sale confirmations and ownership transactions.

Conflicting authorities and lack of coordination

While the Ministry of Justice authorised courts to resume proceedings and accept property sale confirmation claims as of January 30, the Directorate of Real Estate Affairs had already issued a circular on January 21, prohibiting the registration of any action that creates, transfers, or modifies property rights. This means that even if courts issue rulings confirming a property sale, those rulings cannot be executed in the land registry due to the continuing registration ban.

Additionally, while the Bar Association’s latest circular restored the right to issue powers of attorney for real estate transactions, these documents remain practically ineffective as long as the Directorate of Real Estate Affairs continues to block the registration of sale contracts.

This situation clearly illustrates a lack of institutional coordination, with each entity issuing directives independently of the others. The result is a procedural gridlock where any step requiring action by one authority may be blocked by another’s conflicting directive. This misalignment has led to a near-total paralysis of real estate registration processes in Syria.

The contradictions between the directives issued by the Bar Association, the Directorate of Real Estate Affairs, and the Ministry of Justice have caused significant confusion in the country’s real estate system. These inconsistencies have disrupted sales, purchases, and ownership transfers, negatively affecting the real estate market and undermining the rights of property owners and buyers. To restore stability in this vital sector, it is essential to establish effective coordination and integration among these institutions to ensure clarity, legal certainty, and the smooth implementation of property procedures.