|
Property Documentation refers to the systematic organization of real estate documents
that are vital to the ownership or rental of a property. Srilankan Realestate Online (SRO)
provides assistance in informing clients of their rights and responsibilities when doing real estate transactions.
What happens during a real estate transaction?
Here are the steps that happen during a typical real estate transaction:
- Two parties enter into a transaction. A potential buyer may place an offer to purchase a property or the seller puts his property for sale.
- When the buyer decides to buy a property, the two finalize on a price and discusses the terms of sale. The terms shall also be written in a "Sale Agreement."
- A seller must always update his lawyer's title certificate.
- The "Agreement of Sale" is signed and a commitment is made by the two.
- The "title" of the property is transferred to the buyer, depending on the terms and conditions decided by the two. Often, a buyer pays up to 20% of the actual price of the property during first payment transaction.
- The seller must ensure that the property is clear of all dues prior to selling it, and should be responsible for completing all negotiations with other concerned parties such as tenants, associated mortgages and lessees and employees, if necessary.
- When the buyer completes payment of the property, an exchange of contracts takes place. The buyer can now claim the property.
- Both the seller and the buyer are responsible for ensuring the registration of the property with concerned authority.
- When registration is completed, the buyer can now take physical possession of the property.
What is Land/Property Registration and Why is it Necessary?
Land or Property Registration refers to the registration of document changes in
ownership and transactions involving immovable property. Whenever you buy a piece of
land/immovable property, you need to register it with the authority concerned, so that
a legal ownership title is guaranteed to you. This greatly reduces risks of fraud and
helps solve disputes easily, in addition to creating and maintaining an up-to-date
public record.
What You Need to Do to Register Land/Property
Under the computerised Land and Property Registration system, registration is easy. It facilitates
transparency in valuation and eliminates middlemen. Some states require an application
to be submitted to the concerned authority, which may be the Sub-Registrar or the SDM
of your area. The application form can either be downloaded online or obtained from the
concerned authority's office. After due verification of details, the Deed is drawn up
and the registration process is complete.
What are the Documents Required to Buy Property in Srilanka?
To ensure lawful possession of a newly acquired property, one must obtain the following documents:
- A Memorandum of Understanding (MOU) which ensures that both parties in the contract are willing to enter into an agreement for the purpose of the sale and purchase of property.
- A Sale Agreement which outlines the terms, clauses, and duties of transfer of property via sale.
- Documents from the seller's solicitor ensure that the titles associated with the property are correct and marketable.
- Documents from Public Authorities which must be collected from the seller or authorized person.
- An Application for Transfer of Electricity Meters and Supply which helps clarifies that the seller has cleared his dues in full and no due has been transferred to the buyer pocket.
- A Letter of Transfer (in case the property is a unit/flat or shares of a Cooperative Society).
- A copy of by-laws of the Cooperative Society
What are the documents needed when renting property in Srilanka?
When renting property in Srilanka, landlords have the jurisdiction on the kind of document to require interested tenants. However, the most important document is the Lease Agreement which is designed to protect both the tenant and the landlord.
As a landlord, he or she must be keep abreast with existing legal rights and duties of a landlord. On the other hand, a tenant must also be well informed of his right and duties that should be included in the lease agreement.
A typical rent or lease agreement must have the following clauses:
- Interested parties
- Details of the property to be leased
- Enforced duration of lease
- Lease/rent amount
- Terms and conditions on which the property is leased
- The date of expiry of agreement
- Lease termination clause
Rental laws in Srilanka vary for every State, with each state having its own grounds for eviction. However, the following are common to all States:
- The landlord has a bonafide/ genuine need to provide for residence to the members of his family, dependant on him.
- The tenant has been a defaulter in rent payment.
- The tenant has sublet, assigned or parted with the possession of the rented property without the consent of the landlord.
- The premises need major construction/repairs/demolition.
- The tenant has used the premises for any act which is out of character with the purpose agreed.
- The tenant has acquired/built or has been allotted another accommodation.
- The tenant has caused nuisance in the neighbourhood or has damaged the premises or has not used it for a specified period of time.
Why do you need a property documenter?
To get a hold of everything you need in order to purchase, sell or rent a property in Srilanka,
whether you are based locally or overseas, you would need someone with an expertise
in the real estate field. Remember, the needed legal documents must first be completed
in order for a real estate transaction to be valid.
Srilankan Realestate Online (SRO) provides trustworthy and accurate property documentation
for our clients to ensure that all transactions are well-documented and legalized.
If you are seeking for assistance with property documentation, please
Contact Us and we'll be more than happy to serve you,
|
