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Buying Plots of Land in Sri Lanka
Picture this, you just bought your new plot of land in Sri Lanka and are now ready to develop it for habitation or commercial activities. Slowly, your dream investment starts turning into a nightmare because you did not do your homework and did not scrutinize the terms of the land purchase agreement. This leads you to take desperate moves such as taking loans and bank overdrafts to save your land from being repossessed. Finally, you end up being in debt up to your neck and have to sell off the land at a loss. Here is the Sri Lanka land buyers guide, which can help you avoid such nightmares.
The Perculation Test Before you purchase a piece of land in Sri Lanka, ask the seller if it requires a perculation test or if the test has already been done by the owner. If not, arrange for a perc test with the local health department. A perculation test is an important requirement for the installation of a septic system. You may not be able to install a septic system without the perculation test.
Mineral and Logging Rights Before you purchase a piece of land, find out if all mineral and logging rights are included in the purchase agreement. If not, find out who owns the right and contact him/her to see if you can purchase mineral and logging rights and for what price.
Land Laws Contact the local lands office and learn about the restrictions that come with the land. Some land purchase agreements prevent landowners from setting up mobile homes on their property. An official in the local lands office can help you understand about such restrictions.
Liens and Encumberances Liens and encumberances are important factors to consider when buying land in Sri Lanka. If there are liens and encumberances, you or the current owner will have to remove them. It is necessary for you to purchase title insurance when buying land. Obtain the title insurance policy before you buy the piece of land. This insurance policy is important because it will help you determine if the seller is indeed the true owner of the land.
Easements Before purchasing a piece of property, find out if the purchase agreement includes utility and road easements. If you do not own the easements, but still purchase the land, the owner of the easements will have permission to dig up your land without your permission. Owning easements is important, especially if the plots of land for sale are near roads.
Encroachment Surveyors’ terminologies have been changing with time. Before buying a plot of land, ask for the surveyor’s plat. Make sure the terminologies contained in the plat are objective and clearly mark where the property lines are.
Do your homework before purchasing a piece of land. Inquire about liens, encumberances, rights, easements, zoning and title insurance. Be proactive even before you purchase the plot of land so that you can become an informed potential buyer. Consider consulting an attorney that specializes in land purchases so that you can learn about important factors to consider before purchasing land.
Land Purchase Contract Checklist
Before the Contract Before the seller or real estate agent draws up the contract, request a walkthrough of the land. If you are purchasing a large tract of land, request a drive through in case the soil in the land is not sandy and safe for vehicles to drive. Make sure you hire a professional land surveyor to survey the land; it is wise to do this using fund from your own pocket. The surveyor can help you inspect the land for anything that may end up causing costly losses in the end. The findings of the surveyor should be made in writing and included in the land purchase contract.
Learn about prevailing market conditions in the real estate sector. Think about where you can buy land cheap. The value of a piece of land is determined by many factors including proximity to urban centers, security services, and important landmarks. Typically, city land is more expensive than rural land.
There various strategies you can use to buy land cheaply. One of the strategies is staying abreast of land auctions by looking at classified sections of local newspapers. You can also find cheap land by keeping in touch with online groups interested in real estate.
The Contract Check your contract carefully. Do ignore the fine print because it usually contains very useful information. Hire a lawyer who specializes in closing land purchases and drafting land purchase contracts. Ask the lawyer to go through the contract and explain to you the meaning of clauses that you do not understand. Do not be afraid to look stupid by asking for clarifications even on seemingly obvious statements in the land purchase contract. Make sure all the fees associated with the purchase as well as details of the piece of land are clearly stipulated in the contract. Do not sign the contract if you feel the seller or his representative is withholding information about the purchase. If you are buying land together with property developed on it, make sure the contract stipulates the value of the land and the value of the property developed on it, on separate sections.
After the Signing Once you sign the contract, make copies of it and have each page laminated. This will help prevent the contract from being worn out and protect it from the elements for many years to come. Keep the land purchase contract in a safe place within easy access.
Enjoy owning a piece of land because it is a significant achievement. Beware of people who claim to sell plots of land at very low prices. Avoid buying land sight-unseen. However, if you choose to buy land sight-unseen, do so only after making sure it is accessible by road. Many people have bought land sight-unseen only to find out later that they have to go through other people’s properties to access their land.
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