Buying land is a significant financial decision, and a property that appears straightforward can come with legal complications. Before making payment, it is important to understand who owns the land, whether the seller has the right to transfer it, and whether there are restrictions that could affect your plans.
Taking the time to carry out proper checks can help you identify potential problems before committing your money.
1. Verify the Seller’s Ownership
Do not rely solely on the seller’s assurances or the documents presented to you. Confirm the seller’s identity and establish their legal interest in the property.
Where someone is selling on behalf of another person, verify that they have the necessary authority to act. Additional care may be required where the property forms part of a deceased person’s estate or is jointly owned.
2. Conduct a Proper Land Search
A land search can help establish whether the seller’s claimed interest is supported by the available records and whether there are registered interests or other issues affecting the property.
The appropriate checks depend on the property’s location and circumstances. A lawyer can help determine which searches and records should be reviewed before the transaction proceeds.
3. Check the Property Documents
Ask for the relevant title documents and have them reviewed before making a commitment. Depending on the property, these may include a deed of assignment, certificate of occupancy, survey plan or other records relating to ownership and transfer.
Having a document in hand does not, by itself, establish that the seller has a valid title. The documents must be assessed alongside the relevant records and circumstances.
4. Confirm the Land’s Status and Intended Use
Find out whether the land is affected by government acquisition, planning restrictions, disputes, encumbrances or other limitations that could affect your intended use.
If you plan to build on the property or use it for a particular business purpose, confirm the relevant planning and land-use requirements before proceeding.
5. Have the Transaction Documents Reviewed
Before signing or paying, ensure that the transaction documents accurately describe the property, identify the parties and clearly set out the terms of the sale.
You should also understand the steps required after the transaction, which may include obtaining the relevant consent, paying applicable fees and perfecting the title, depending on the property and the applicable law.
Get Legal Advice Before You Commit
Property transactions involve more than agreeing on a price and exchanging documents. The appropriate checks depend on the location, the nature of the seller’s interest and the specific circumstances of the transaction.
Obtaining legal advice early can help you identify issues, understand your options and make a more informed decision before committing significant funds.
If you are considering buying land or have concerns about a property transaction, Bola Adebowale & Co. can help you understand the legal issues involved and determine the appropriate next steps.