Conduct a title search at the Property Registry
Agency: Property Registry
Parties verify that the title is free from encumbrances by filling a request slip of search addressed to one of the registries. After applying, a certificate of official search is obtained. Mahe has two registries: one for old and one for new land. The search in the new registry is done by parcel number.
Time and cost: 1 day, SCR 100
Notary drafts and legalizes sale purchase agreement
Agency: Notary
A notary is required by law to notarize the sale/purchase agreement. Parties make an appointment one day and usually visit the following day. Prior to drafting of the sales agreement, the buyer needs to grant (by resolution of the Board of Directors) a director or other representative the authority to buy the land at the agreed price, on behalf of the company. The seller has to do the same. Standard transfer agreements can be found in the Land Registration Act.
Time and cost: 2 days, SCR 217,920.32 (2% of property value)
Deposit sales agreement with Stamp Duty Commission (property registry)
Agency: Stamp Duty Commission, Property registry
The notary deposits 3 original copies (one for the seller, one for the buyer and one for the notary). The documents have to be submitted within less than a month after the execution of the contract. If not, a validating duty (double of stamp duty, i.e. 10%) is charged. At the registry, the parcel number is checked, and the stamp duty calculated (5% of property value) and approved. After a senior filing registrar has reviewed the documents and value, the file is sent to the Registrar for review and approval. If there is any doubt about the accuracy of the value, which may happen in about 40% of cases, the documents are sent to the evaluation office at the Lands Office. The valuation office would subsequently re-assess the property value and transfer the documents back to the Registrar. The surveying and valuation take on average 1-2 months. Once the Registrar has approved, the notary returns for payment. He is either informed by phone or checks independently. This surveying and valuation would not apply to the transfer of the case study.
Time and cost: 5 days, no charge
Pay registration fees to Stamp Duty Commission and register property title
Agency: Stamp Duty Commission, Property registry
Once the stamp duty and fees are paid, the transfer is registered (‘presentation of documents’) and the documents stamped. The Registrar approves the transfer by signature, and the document is returned to the land section for dispatch. The legal time limit for registration (including approval of stamping) is 25 days.
Time and cost: 25 days, SCR 544,900.8 (5% of property value + 100 SCR (Registration Fee))
