Path dependence is a theoretical framework used to explain the tendency to maintain the status quo and resist change. Its application in the legal domain emphasizes that reforming a legal system is no easy task; the choice of a future legal path largely depends on the trajectory already taken and the current state of legal rules and institutions. According to this theory, initial decisions made at critical historical junctures establish certain paths which, over time, become increasingly costly and difficult to abandon. This article aims to introduce the concept of path dependence within the context of Iranian legal literature and to analyze the enactment of The Law on the Requirement to Register Real Estate Transactions (2024) through this lens, offering insights to support the effective implementation of the law. The research adopts a descriptive-analytical method based on qualitative and desk studies. Additionally, due to the economic origins of path dependence theory, an interdisciplinary approach is also reflected in the methodology.
The findings stress that the enactment of the mentioned law does not, by itself, mark a definitive shift in rules of registration in Iran; rather, it serves as a critical juncture that creates the possibility for such a change. The law’s success in breaking away from the previous trajectory depends on several early decisions made after this juncture—particularly, judicial initiative (especially by the Supreme Court), efforts to reconcile Islamic jurisprudential rules with modern registration requirements, and the degree to which positive feedback loops are generated. Thus, a final assessment of the law’s effectiveness will only be possible over time and in light of practical developments.