Transfer of Property Act at Maldives
In the Maldives, property transfer is not governed by a Transfer of Property Act similar to India’s, but rather by a set of legal frameworks and regulations that govern land ownership and transactions. The main laws regulating property transfers in the Maldives include:
Key Legal Frameworks for Property Transfer in the Maldives:
Land Act (Law No. 4/2008):
The Land Act is the primary piece of legislation governing land ownership, rights, and transactions in the Maldives. This law establishes the procedures for land registration, the issuance of titles, and the transfer of land.
The law differentiates between State-owned land and private land, as much of the land in the Maldives is owned by the State, especially in the context of islands that are not individually allocated.
Conveyancing and Registration:
Like many other countries, property transactions in the Maldives require a conveyancing process to transfer ownership. This includes the preparation of documents, contract agreements, and proper registration.
Land and property transfers are typically registered with the Land Registrar, a government official or agency responsible for maintaining official records of land ownership and ensuring that transfers are legally recognized.
Real Estate Laws:
For real estate transactions (such as apartments, homes, or businesses), the Civil Code of the Maldives and various regulations regarding the leasing or sale of property would also apply.
These transactions typically involve preparing a sale agreement (which includes details such as purchase price, payment terms, and specific conditions), which must be signed by both parties and notarized by a registered legal professional.
Key Steps for Property Transfer in the Maldives:
Agreement Between Parties:
The buyer and seller agree on the sale terms, which should be documented in a sale and purchase agreement (SPA).
This agreement outlines key details such as the sale price, any down payments, and the timeline for completing the transaction.
Payment of Fees and Taxes:
The buyer typically needs to pay stamp duty and other taxes related to the transaction. In the Maldives, stamp duty is payable to the government and is calculated as a percentage of the property’s sale price or market value.
Registration of the Transfer:
Once the agreement has been signed and payments made, the transaction must be registered with the Land Registration Office or the relevant government authority.
This involves submitting the signed agreement and necessary documents, including proof of payment of taxes and any other required documentation.
Issuance of Title:
After successful registration, the new owner receives an official land title or ownership certificate. This certificate is proof of ownership and will be necessary for any future transactions or property dealings.
Foreign Ownership Restrictions:
Foreign nationals are generally not allowed to own land directly in the Maldives, except in special circumstances, such as on resort islands or through long-term leases. Foreigners can, however, buy property on leasehold terms, usually for periods of 99 years in specific designated areas.
Foreign investment laws and policies govern these exceptions, particularly in the tourism sector or in developments under government-approved projects.
Additional Considerations:
Leasing vs. Freehold Ownership: As mentioned, freehold property ownership is restricted for foreign nationals, and most transactions involving foreigners take place under leasehold arrangements. Leasehold agreements can also be transferred, but they are subject to government approval.
Inheritance Laws: In cases of inheritance, the Maldivian inheritance laws (primarily based on Islamic Sharia law) will apply. Property and land can be passed down according to these laws, which are distinct from conventional civil law systems.
Conclusion:
In the Maldives, property transfers are governed by the Land Act, Civil Code, and other regulations, with a focus on land registration and ownership. Foreign ownership is limited, especially regarding land, but foreigners can acquire property through long-term lease agreements. The process for transferring property in the Maldives typically involves an agreement, payment of taxes, registration, and issuance of a title.
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