Transfer of Property Act at Seychelles
In Seychelles, there isn't a specific Transfer of Property Act similar to the Indian Transfer of Property Act. However, property transfers are governed by civil law principles, primarily influenced by French law (as Seychelles was once a French colony) and English common law. The process is regulated by several laws and regulations.
Key Legal Frameworks in Seychelles for Property Transfer:
Civil Code of Seychelles: This is the main legal framework governing civil matters, including property transactions.
The Civil Code includes rules on ownership, contracts, and obligations, and it lays the foundation for property transfers, leases, and inheritance.
Land Registration Act:
This Act governs the registration of land and the transfer of real property.
All transfers of property must be registered with the Land Registry to be legally effective.
The Real Property Act:
The Real Property Act outlines how land is divided into parcel numbers and the process for transferring land between parties.
It also governs land registration and ownership rights.
Companies Act (for Property Ownership via Companies):
If property is being transferred via a company (e.g., as part of a business), this Act may also apply, alongside the other relevant property laws.
Property Transfer Process in Seychelles:
Here’s a simplified breakdown of the steps for transferring property in Seychelles:
1. Agreement Between Parties:
The transfer of property usually begins with a written agreement between the buyer and seller.
The agreement will contain essential details like the property description, purchase price, payment terms, and any conditions or warranties attached to the sale.
2. Due Diligence:
A title search and property due diligence are important to ensure that the property is free from encumbrances (such as mortgages, liens, or disputes).
This can be done at the Land Registry or through a lawyer.
3. Notarization and Execution:
Once the sale agreement is agreed upon, both parties need to sign the deed of transfer, which is then notarized.
Notarization ensures the authenticity of the document and signatures.
4. Payment:
The buyer transfers the purchase price to the seller, and proof of payment is typically required for the property registration process.
5. Land Registration:
The transfer must be registered with the Land Registry to officially record the change in ownership.
The buyer submits the notarized deed of transfer along with proof of payment and other necessary documents to the Land Registry.
6. Stamp Duty:
Stamp duty is required for property transfers in Seychelles, typically calculated as a percentage of the property’s value.
The rate for stamp duty can be up to 5% of the sale price, depending on the type and value of the property.
Foreign Ownership of Property in Seychelles:
Foreigners can own property in Seychelles, but there are restrictions in place.
Foreign individuals may own property in Seychelles, but they must obtain prior government approval.
In practice, this often means that a foreign buyer must apply for permission from the Lands Department or Seychelles Investment Board (for commercial properties or larger developments).
The government generally grants permission for the purchase of property if the foreign buyer intends to use the property for personal residence or business investment.
Important Considerations:
Land Use: Some land in Seychelles is designated for specific use (e.g., agricultural land, conservation areas), and its transfer may be subject to certain conditions.
Legal Fees: There may be additional legal fees for notarization and registration, which are typically shared between the buyer and seller, depending on the agreement.
Summary of Property Transfer in Seychelles:
| Feature | Details |
|---|---|
| Key Legal Frameworks | Civil Code of Seychelles, Land Registration Act, Real Property Act |
| Transfer Process | Sale agreement → notarization → due diligence → payment → land registry registration |
| Stamp Duty | Up to 5% of the property value |
| Foreign Ownership | Allowed, with government approval (especially for large or commercial properties) |
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