Thinking about buying property? If you have seen some of the unfortunate headlines, tweets and viral videos in recent times about people who have allegedly been defrauded in property transactions, you would agree that great care must be exercised when purchasing property.
As the courts and relevant authorities deal with these unfortunate circumstances, there are a few things you should know that will help you avoid being duped and left wondering where your money has gone.
First, you should note that when you begin initial negotiations for the purchase of property, the onus is on the purchaser to ensure that this venture is legitimate and that proper due diligence in respect of the property is carried out.
The Certificate of Title is the legal document which indicates ownership of registered land and this should always be checked to determine if the vendor is actually the owner of the land.
Then you must do your due diligence which is to go further and check if the title that you are shown is genuine and up-to-date. This can be done by purchasing a copy of the title from the National Land Agency (NLA) and comparing the two. The purchase of the title can be done online via the NLA’s website.
It is recommended that the title is reviewed by an attorney-at-law who will be able to highlight any inconsistencies, liens, caveats, etc, that may affect the title. Your attorney ought to also request a caveat search at the NLA which will identify equitable interests claimed by third parties as these interests may not be apparent on the title not apparent from a visit to the land.
You may want to visit the property to inspect as best as possible the actual condition of the land or the building and to check if someone is currently renting the property or if there are squatters.
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