Property transactions demand rigorous legal oversight at every turn. In Mauritius, the notary is the key figure ensuring this security. Me Varuna Punchoo shares her insights…
What exactly is the role of a notary in a property transaction?
Ensuring the legal safety of a real estate transaction is our foremost task, protecting both buyer and seller. This means verifying the title deed of the seller, confirming legal capacities, checking for charges, mortgages or servitudes, and confirming the conformity of the property vis-a-vis the authorities through permits such as those for construction, conversion or subdivision. The notary prepares the deed of sale, witnesses all signatures in person, collects State duties and fees, and oversees its registration and transcription. They make certain that every formality is fulfilled and provide balanced, impartial advice to both parties.
In the event of an irregularity, the notary determines whether it can be rectified or whether it constitutes a prohibitive defect. They advise the parties on how to regularise the situation, or conversely, warn them of the risks involved and the impossibility of proceeding with the purchase.
What financial charges should be expected when buying a residential property?
When acquiring a property, the principal expenses are the registration duty and the notary’s fees. The registration duty represents 5% of the agreed purchase price.
First-time property buyers enjoy a registration duty exemption of up to Rs 125,000 on residential land acquisitions and up to Rs 250,000 when buying a house or an apartment.
As for the notarial fees, they are legally fixed under the Notaries Act. The breakdown is as follows: 2% for the first Rs 250,000, 1.5% for the next Rs 500,000, 1% for the subsequent Rs 1,000,000, and 0.5% on the remaining portion of the purchase price.
What is the most common mistake to avoid when buying property?
Without question, the most serious misstep is to commit too quickly after a sudden attraction to a property, especially by paying the seller directly, without involving the notary or having a formal pre-sale contract prepared by them.
Engaging the notary early in the process is key to ensuring the transaction’s legal security and protecting against future complications, such as failure to secure financing, a defective power of attorney, property searches revealing risks of eviction, or undisclosed covenants and easements burdening the property.
Taking the time to ask the right questions and explore all possible complications is essential before making any commitment.
