Check for property ownership and encumbrances
Agency: Land Department
The department of lands and the Land Registry has an electronic database (not online) of titles, ownership and encumbrances. One document will provide all the relevant information on the property, the ownership and encumbrances.
There is the possibility of obtaining a non-certified copy of the title, which has no value. According to Section IX of the Land and Titles Act [Cap 143] only certified copies has prima facie evidence.
Time and cost: 2 days, SBD 30
Obtain tax and encumbrances clearance
Agency: Registry of Titles Office
Parties obtain tax clearance and assurance of no encumbrances or liens on the land from the Commissioner of Lands.
Time and cost: 1 day, SBD 10
Confirm boundary maps of the property
Agency: Survey Department at the Ministry of Land
This is not mandatory but it is standard practice to confirm the boundary maps. Limits to the property are marked with cement “pegs”, and It is necessary to verify them. Most properties in Honiara have property pegs.
A letter is written to the Surveyor General to confirm the boundaries. The letter is passed on to the chief of surveyors, who will contact the person (by phone) to inform him/her when the identification of the boundaries will be conducted.
Once the boundaries are confirmed, the report of the Chief of surveyor will be delivered to the office of the Surveyor General. This is done in accordance to the Land Survey Act [Cap 134].
Time and cost: 4 days, no charge
Contract a surveyor to survey the land
Agency: Survey Department at the Ministry of Land
One may be able to hire staff from the Survey Department at the Ministry of Land, but there is a shortage of staff so it is usually necessary to hire a private surveyor.
Time and cost: 20 days, SBD 1,000
Get consent for a transfer from the Commissioner of Lands
Agency: Commissioner of Lands
The Commissioner of Lands checks the files and authorizes the transfer. He cannot delegate his signature for transfers.
Time and cost: 25 days, SBD 300
Prepare and sign transfer contract
Agency: Lawyer
Exchange of contracts is in accordance with the law. Lawyers must act for the Company. They will need to have checked the identification of boundaries and investigate the title. The parties choose the law firm and the lawyers act for the companies. The vendor company agents must either have the company seal or be authorized to sign on behalf of the company with a power of attorney. In Honiara, the transfer will refer to a leases or a fixed term estate (both last 25-50 years generally).
Time and cost: 1 day, SBD 4,061.4 (0.5% of the value of the transaction (legal fees))
Verify the registration of the vendor company
Agency: Company Haus (online)
Lawyers are instructed to ensure completion in accordance with the law and ensure the transfer of title.
With the introduction of the online registration for companies, it is now possible to search for a company online at no cost, saved the proof as a pdf file.
http://www.companyhaus.gov.sb
The evidence of incorporation must be presented in accordance to Evidence of incorporation LN 85/1968.
An application for registration of a dealing whereby a corporation acquires an interest shall be accompanied by such evidence of incorporation as the Registrar may require.
Time and cost: Less than 1 day (online), no charge
Notarize the transfer contract
Agency: Registry of Titles Office
This contract must be witnessed or notarized by either a public notary, a solicitor or civil servant (surveyor above level 5 or land officers). Fees are not regulated and vary between SBD 10 and 50.
Time and cost: 1 day, SBD 30 (SBD 10 – 50)
Pay the Stamp Duty at the Inland Revenue
Agency: Inland Revenue Division
Every document executed which is chargeable to duty under the Stamp Duty Act must be stamped within two months of execution.
Time and cost: 2 days, SBD 32,491.23
Stamp duty on transfer of properties according to the following scale:
- Where the consideration or amount exceeds: $10,000 but does not exceed $25,000 – 2% of transaction value;
- Where the consideration or amount exceeds: $25,000 but does not exceed $50,000 – 3% of transaction value;
- Where the consideration or amount exceeds: $50,000 – 4% of transaction value.
Register the transfer
Agency: Registry of Titles Office
The time includes the delay in obtaining the final confirmation of registration.
The registrar of titles covers all the country. It uses a Torrens system and records on paper the information related to a title (ownership, encumbrances, etc.) Titles are scanned as a backup. A computer system records all the transactions requested about a parcel (encumbrances checking, title transfer request, etc.). However, this computer system does not record ownership or encumbrances; it just records that someone registered a transfer.
The owner is informed that the transaction is registered by the “Advice of registration of a dealing” sent by post.
Time and cost: 30 days, SBD 200
