Suppose you have finished searching for a piece of land and have now settled on a particular piece. You are satisfied with it, and you are now proceeding to the next stage, including signing the papers and making the cash transfer to own the land.
Before inking that signature and effecting the transfer, we at AMCCO Properties wish to highlight some of the critical questions you should ask.
You need to ask whether the title of the land is freehold or leasehold. A freehold title confers the investor with the right to use a parcel of land for an indefinite period. The investor gets a title. On the other hand, a leasehold title allows the user to use the land for a defined period. The investor is issued with a lease certificate.
You also need to know where the land is located. This requires the investor to visit the property to ascertain the physical condition of the land. This includes the slope of the land, drainage, and proximity to social amenities.
An investor also needs to ask about access to water and electricity. The user needs to ascertain the proximity of the land to water, electricity, and drainage systems. In particular, they need to confirm that the water available is clean for domestic use.
Investors also need to ask why the land is being sold. Where such information is available, it can help the investor avoid getting conned. This information can be obtained from the neighbors and people residing in the area.
It is also vital to understand who one is dealing with. Towards this end, the investor needs to understand whether they are dealing with the property agent, owner, or third parties authorized by the owner. In particular, the investor needs to know who will receive the payment on behalf of the owner.
An investor also needs to ask whether there are any regulations for landowners in the area. This includes what they are allowed or disallowed to do. For instance, is it a controlled development area or not? If yes, the investor should ask for evidence,
The investor also needs to ask about the accurate size of the land. This is because the land size may differ on the ground. The surest way to verify the size of the land is by searching it from the land registry.
Another important question that a first-time investor needs to ask is whether the land has been surveyed. If the answer is affirmative, one should visit the property and look out for boundaries or land beckons. They should also countercheck the boundary with the experts in the profession, such as surveyors and attorneys, before making the purchase.
An investor also needs to ask about any additional charges related to the land. Some of these charges include land rates, security, and road improvement levies. Towards this end, the potential landowner needs to know the exact amount payable and the payment frequency.
Lastly, a potential landowner needs to ask how they will be making the payment. If the ownership is debt-financed, the investor needs to understand the interest payable and the frequency of payments. However, if it is payable in cash, the investor needs to ask the bank account where the transfer will be made.
