You need to do a series of checks and verification called “due diligence”.

Due diligence is a thorough investigation to identify and resolve potential issues before purchasing a property. It involves verifying ownership and the characteristics of the property, checking for mortgages, other encumbrances, or restrictions on the property, confirming compliance with permits and applicable law, and generally ensuring the property is as described by the seller and that it is suitable for your intended use and purpose. This process protects you from unexpected legal, financial, or practical problems, when buying property.

It ultimately depends on the nature of the property. Generally speaking, you should at least obtain and review the title deed to verify ownership and the characteristics of the property. If there is no title deed, the contract of sale should be reviewed. You should also ask for a recent Land Registry search to determine if there are mortgages and other encumbrances. Furthermore, you should conduct a search on the Land Registry portal to verify the information on the title deed and determine the zoning and other characteristics of the property. If it’s built or under development, ask for the permits, architectural plans, and specifications. Lastly, you should perform a physical inspection. Depending on the nature of the property and the intended use, you may need to seek and obtain expert reports such as land surveys for land, valuations by chartered surveyors, architect reports on permitted developments, and architect or civil engineer reports for existing structures, etc., as applicable.

The title deed is an official document issued by the Land Registry that confirms the property's legal owner or co-owners, describing their respective share. It also provides details about the property, such as its exact location, size, nature (e.g., residential, commercial, or agricultural), and a most recent valuation. Notes and encumbrances also appear, if any. For units in communal building complexes, it additionally provides information on ownership of communal areas, exclusive uses, and other information.

A Land Registry search reveals any legal burdens on the property, such as mortgages, court orders, or other encumbrances. It also identifies any prior contracts of sale registered for the property for specific performance purposes. It describes the nature of such encumbrances and the names of the beneficiaries. All such issues, regarding third party rights on the property, when evident may prevent or hinder the buyer’s right to transfer their property in their name and obtain a title deed, and thus must be duly addressed.

Only the property owner, their duly authorised representatives, or persons with a legitimate interest in the property will be permitted to conduct a Land Registry search. In the context of the due diligence exercise, a Land Registry search is normally requested by the buyer, and the seller or their representatives will furnish it. It can be obtained electronically through the personalized government portal of the seller.

The Department of Lands and Surveys (DLS), namely the Land Registry online portal, through their interactive maps feature, allows you to identify a property either by search or by using details from the title deed (e.g., plot number, location, sheet, plan etc.). Once identified, you can extract all publicly available information, including the property’s size, exact location, most recent valuation, zoning and allowable uses under planning regulations, building coefficient and coverage coefficient, shape, and other characteristics, etc. This step is particularly useful, for one, to verify the accuracy of the title deed, and for the other, to ensure the property meets the buyers’ needs, especially if it is intended for future development.

Zoning determines how a property can be used or developed (e.g., residential, commercial, industrial). It specifies building ratios, namely what is the percentage from the total area that you can build, coverage ratio, namely what is the percentage of the total area that can be the footprint of the building to be erected, and allowable height or floors. For a full picture, you need to also take into account permissible variations, incentives and allowances from the government from time to time, like environmental, efficiency incentives, the ability to acquire listed coefficient from preserved buildings and areas excluded which do not count towards the coefficient, such as basements, verandas, mezzanine, and certain common areas. For property acquisition intended for development, you should obtain a specific report from an architect or other property expert.

Generally speaking, construction of a building requires a planning permit from the relevant planning authority, a construction permit from the municipality it is situated and if completed it must have a certificate of final approval to be followed by the issuance of a title, with full description of the property. Depending on the nature of the property to be acquired, under development or duly constructed, a buyer must seek and obtain copies of all such permits. For one to verify that the construction was made or is being made legally. For the other, if fully constructed to check if there are any illegalities from construction or subsequent modifications on the property.

It is generally wise to avoid buying a property, either completed or under construction, without at least a planning permit. If the property is completed and there are illegal modifications, you can negotiate with the seller to resolve these issues before the purchase. In some cases, you may need to apply for retroactive permits, which can be time-consuming and costly. It’s essential to consult with a lawyer or property expert to evaluate the risks.

A physical inspection ensures the property matches its description on the title deed and reveals any hidden issues. For instance, the title deed may incorrectly state the property’s size, or the seller may misrepresent the physical boundaries. Inspections also identify potential problems like illegal extensions, poor construction quality, or nuisances from neighbouring properties such as smells, noises, etc. If the building is duly constructed, a physical inspection, especially by a civil engineer or other specialist, can identify any structural or other issues with the property or any illegal modifications, which will become the responsibility of the buyer.

For land purchases, hire a licensed land surveyor to confirm boundaries and measurements. For erected buildings, an architect, a civil engineer, or a construction expert can evaluate the structure’s safety, quality, and compliance with permits.

A professional valuation assesses the property’s market value to ensure the asking price is reasonable. It customarily provides a wealth of information on the land, including insights on the market, the location, the zoning, and finally comparative sales in the area. Banks often require valuations for loan approval. Such a valuation is generally considered more reliable and up to date than the Land Registry valuation appearing on the title, which is generally based on an algorithm. It is not entirely clear how it works, how and what data it uses as input.

Ensure the developer has obtained at least a planning permit and verify their progress against approved plans. Check for financial stability and reputation to avoid the risk of incomplete projects and endless corresponding legal issues. If there are other “pre-sales”, apparent in the Land Registry search, or a mortgage for bank loans, it’s a good indication that the developer will have sufficient funds to complete the project.

Ensure the developer has obtained at least a planning permit and verify their progress against approved plans. Check for financial stability and reputation to avoid the risk of incomplete projects.

Fully constructed properties may have illegal alterations or incomplete permits or approvals. These issues could result in fines or delays in obtaining the title deed. Always confirm that the property has a valid certificate of final approval or title deed. Additionally, constructed properties, especially those completed a long time before, will have signs of wear and tear and perhaps structural issues, which will require maintenance. They may be costly.

Ensure these are resolved before or simultaneously with the purchase and transfer the property. This can be achieved by withholding payment until the encumbrances are lifted or negotiating for the seller to clear the debts and thus lift any encumbrances, before the sale. When the property is mortgaged, it is now a legal requirement to secure “bank waiver” in the form prescribed by law, namely a legally binding commitment from the beneficiary of the mortgage to lift it once payment of the purchase price is made.

No. Always verify information independently through official documents, expert reports, and physical inspections. Sellers may unknowingly or intentionally provide inaccurate information. In any event, all statements of the seller should ideally be included as warranties, in a written contract of sale, which are binding and enforceable.