Payment of stamp duty at the Vanuatu Financial Services Commission
Agency: Vanuatu Financial Services Commission
Transfer of a lease is done by mean of an instrument in the prescribed form. The seller must provide the warranty that there is no outstanding payment (such as the ren). The buyer should provide warranty that he/she will pay the rent and other obligations. After the agreement is executed by the parties, with no need to engage the services of a lawyer, the stamp duty must be paid. The stamp duty is paid at the Vanuatu Financial Services Commission. The Controller of Stamp Duties may take from one to 14 days to stamp the document. It depends on what type of lease documents are submitted to that Office. The Controller of Stamp Duty may require further details from the parties to assist that office in assessing duty. In cases a lease is transferred, before the parties may execute a transfer, the vendor (registered proprietor of the registered Lease) must have ready to hand to the purchaser a consent granted by the lessor (either the Government or custom owners as the case may be) agreeing to such transfer of the interests comprised in the lease. The stamp duties act establishes stamp duty at 2% of property value. The 2007 amendment reduced it from 5% to 2%.
Time and cost: 7 days, VUV 325,064.84 (2% stamp duty on the value of the lease (stamp duty))
Check for encumbrances
Agency: Department of Lands Records
The buyer usually requests a search on the property. The checking is done before so that the discharge of mortgage can be done prior to the registration.
Time and cost: 1 day, VUV 1,000
Obtain Ministerial consent to transfer the lease
Agency: Lands Department
According to the law, it is mandatory to request the consent of the Minister of lands to transfer property, if the property is located in an urban area. In practice, there is a sale agreement between the parties, and there is no need to hire a lawyer or a real estate agent. All relevant documents are provided at the land registry. The land department will verify that all taxes are paid. The State Law office will provide its legal advice on the documents to the Minister. The consent is picked up at the department of lands and surveys. Once permission is granted (and all encumbrances cleared – see following Procedure), ownership is transferred, and payment to the seller is made.
Time and cost: 21 days, VUV 3,375
Apply for and obtain registration of the deed of transfer at the Department of Lands Records
Agency: Department of Lands Records
When the consent to transfer is granted, the documents are filed at the Department of Lands Records where payment of the registration fees is made. The fee is established in the Land lease act. The amendment of 2004 increased it from 2% to 6% and the amendment of 2006 decreased it from 6% to 5%. The Department of Lands Records is computerized, and this has significantly reduced the time it takes to process new requests. When a company is involved, the memorandum and articles of association, as well as the certificate of incorporation, must be provided at registration.
Time and cost: 30 days, VUV 812,662.09 (5% registration fee on the value of the lease (registration fee))
