Property documentation and the practical reality on the ground should tell the same story. Effective diligence tests both before commitments become difficult to unwind.
Establish the interest being sold
Understand whether the transaction concerns a freehold, leasehold, customary or other interest, and assess whether the seller is entitled to grant that interest. The answer affects the required approvals, duration and transfer documentation.
Verify independently
Review available title and registration documents alongside searches with relevant public bodies and independent site investigations. Particular attention may be needed for boundaries, competing claims, encumbrances and existing occupation.
- Review the root of title and the complete transfer chain.
- Check surveys, plans and physical boundaries.
- Investigate restrictions, consents, security interests and disputes.
- Confirm payment conditions, taxes, stamping and registration steps.
Build safeguards into completion
The agreement should allocate responsibility for title defects, approvals, documentation and completion deliverables. Conditions precedent and staged payments may be appropriate, depending on the circumstances.
This article provides general information and is not legal advice. Applicable law and the right approach depend on the circumstances; please obtain professional advice before acting.