Hello and welcome back to the Property Primer. This week we’re making a start on the examination of the steps involved in the sale and purchase of a (residential) property in Fiji. This is a sometimes an intricate process which can, and has, tripped up many buyers, sellers, estate agents and even solicitors. We’ll begin by detailing the basic transaction steps so everyone has at least a theoretical overview of the basic process and then we’ll launch into examining the detail of each stage over the next four or five issues.
Step 1: Initial agreement: The parties agree to the sale and purchase of a property and the general terms of the transaction.
Step 2: Engaging solicitors: Ideally, each party will engage their own experienced solicitor (in good standing) to represent his or her interests throughout the transaction through to settlement.
Step 3: Drafting and execution of Final Agreement and Transfer: The parties’ solicitors will settle on the form of the final agreement containing all of the agreed provisions that is then executed by both parties. It is also common for the transfer document to be finalised and executed at this stage.
Step 4: Application for Consent (if applicable): When the subject property is TLTB, State/ rown Land or freehold (when foreign citizens are involved), an application to the relevant body will be required. Approval of consent will be endorsed on the transfer when returned.
Step 5 (or 4 if Consent is required): Stamping of transfer and supporting documents. Once the transfer has been executed properly (and returned from the relevant body granting consent to the transfer) the transfer and other documents are sent along for stamping at FRCA/ Stamp Duties office.
Step 6/5 CGT: Once the transfer documents are stamped they are returned to the vendor to attend to CGT clearance.
Step 7/6 Settlement Statement: On return of CGT documents from FRCA the purchaser should issue a settlement statement in preparation of settlement of the transaction.
Step 8/ 7 Settlement: Settlement is usually carried out at the Registrar of Titles office and, although money will change hands and the Registrar accepts the documents for registration, the transaction is only finally concluded once the transfer has been properly recorded on the Title (which may take as much as three-six months).
That’s it for this week. Remember, we are very interested in the feedback and concerns of our readers. So, if there is something that is of particular importance to you, do not hesitate to let us know via your letters or email at: property.primer@fijitimes.com.fj. If there are sufficient numbers of readers voicing the same concerns or interests, it is highly likely this column will look to address those concerns sooner rather than later. Have a good weekend and, we’ll see you again next Saturday.
DISCLAIMER: Please be advised that the contents of this column are intended for informational purposes only and are not intended to convey or constitute any form of legal advice whatsoever. You should not act upon any information contained herein without first seeking qualified professional counsel on your specific matter.
