Step-by-Step Property Purchase Procedure: A Comprehensive Guide

1. Identification of the Land

Begin by searching for a plot that aligns with your criteria—consider location, size, and price. Verify ownership to ensure the land is legitimately for sale and the seller is the rightful owner.

2. Legal Checks

Request the title deed to confirm ownership and check with local authorities for zoning and land use regulations. Ensure the land is suitable for your intended use (residential, commercial, agricultural) and assess accessibility to water and electricity.

3. Due Diligence

Conduct a land survey to determine the exact boundaries of the plot. Perform an environmental inspection to rule out issues like flood risks.

4. Financing

If financing is required, apply for a mortgage from financial institutions. Be prepared to submit all necessary documents for evaluation.

5. Signing a Preliminary Sales Agreement (Option to Purchase)

Once you’ve chosen a plot and verified its legitimacy, negotiate and draft a preliminary sales agreement. A deposit of 10% to 20% of the purchase price is typically required. Include suspensive clauses such as obtaining building permits or securing financing.

6. Finalizing the Sale

Proceed to sign the deed of sale, ensuring the cheque is made out to the notary. Pay the remaining balance to the seller, and the deed will be registered at the Conservator of Mortgages, completing the transaction.

7. Registration and Payment of Taxes

Pay the registration duty, usually 5% of the purchase price, along with any applicable stamp duty and notary fees.

8. Transfer of Ownership

Once all formalities are complete, take possession of the property. The notary will register the transfer, and you will receive the contract within 15-20 days.

9. Post-Purchase

With the land now in your name, you can begin land development according to the permits obtained.

Contact us for more information on 5773-5524 or poligadoo@hotmail.com

Why You Must Provide Identification and Supporting Documents in a Real Estate Transaction

At our firm, transparency and legal compliance guide every property transaction. In accordance with the legal framework overseen by the FIU, we require certain documents when you engage in buying, selling or leasing property. This is part of the broader Anti‐Money Laundering / Countering the Financing of Terrorism (AML/CFT) regime.

📜 Key Legal References

• The Financial Intelligence and Anti‑Money Laundering Act 2002 (FIAMLA) is the principal statute in Mauritius which:

  • Establishes the FIU. Fium Mauritius

  • Defines the offence of money-laundering (section 3) and imposes obligations on “reporting persons” to prevent misuse of their services. BOM+Orison Lega

  • Under Section 3(2) requires that persons take “such measures as are reasonably necessary to ensure that the service or business of the person is not used to facilitate the commission of a money-laundering offence or financing of terrorism offence.” Orison Legal

  • Under Part IV (Sections 14-19) sets out reporting and other preventive measures. Fium Mauritius

• The Financial Intelligence and Anti‑Money Laundering Regulations 2018 (FIAML Regulations) supplement FIAMLA and provide detailed rules for customer due diligence, record-keeping, identification, etc. BOM

• The FIU has issued the Guidelines on the Measures for the Prevention of Money Laundering and Countering the Financing of Terrorism for the Real Estate Sector (Real-Estate Guidelines) pursuant to Section 10(2) (ba) of FIAMLA (2021 version) specifically for real-estate agents, land promoters and property developers. Fium Mauritius

• Under FIAMLA, the real‐estate sector is designated as a “Reporting Person” sector: the FIU is the AML/CFT regulator for the real-estate sector (sale, exchange, purchase or lease of real estate) pursuant to the First Schedule of FIAMLA. Fium Mauritius

🧾 What This Means for You (Documents We Will Ask For)

Because the law mandates strong “Know Your Customer” (KYC) and source-of-funds checks, the following documents will be requested for any real-estate transaction:

For an Individual (Buyer or Seller)

1. Valid ID – National Identity Card (CNI), Passport or equivalent. This helps verify your identity as required by CDD (Customer Due Diligence).

2. Proof of Address – A recent utility bill, bank statement, official letter (dated within last 3 months). This is part of verifying your address and ensuring there is no fictitious identity.

3. Proof of Funds / Source of Funds –

   • Bank statements, loan documentation, or official cheque/tranfer records showing you have the money for the transaction.

   • If funds are from abroad: evidence of transfer, remittance advice, etc.

   • Explanation of origin of funds (savings, employment, inheritance, sale of another asset) as part of “source of funds” checks required under AML rules.

4. Beneficial Owner / Ultimate Owner (if applicable) – If the transaction involves a company, trust or legal entity, the natural person(s) who ultimately own or control must be identified and documented. Under Section 17E of FIAMLA, beneficial owners must be identified. YKL Services

For a Company / Legal Entity

1. Certificate of Incorporation / Business Registration.

2. List of directors/shareholders including IDs and proof of address.

3. Recent company bank statements.

4. Proof of source of corporate funds (financial statements, loan agreements, invoices showing legitimate business).

5. Documentation identifying beneficial owners (natural persons who ultimately own/control the entity) and control structure.

✅ Why These Documents Are Mandatory

• Under FIAMLA and its regulations, real-estate agents (and other reporting persons) have legal obligations to carry out customer identification, verify source of funds, keep records and report any suspicious transactions. The failure to do so can lead to criminal penalties (large fines, imprisonment) and regulatory sanctions by the FIU. Dtos Mu+Orison Legal

• The real estate sector is considered medium-to-high risk for money-laundering and terrorism-financing because criminals often seek to hide illicit proceeds by investing in property. YKL Services

• The documentation process helps protect:

  • You, as client, by ensuring transparent and secure transactions.

  • Us (the agent/firm) by fulfilling our legal/regulatory duties.

  • The wider financial system and economy from misuse by criminals.

• The FIU has the power (under Section 19N of FIAMLA) to impose administrative sanctions on reporting persons who fail to comply. Fium Mauritius

🔎 Practical Tips for Smooth Processing

• Prepare your ID and proof of address in advance so that the transaction isn’t delayed.

• If you are using funds from abroad or via complex corporate/structure routes, gather supporting documents early (bank transfers, loan agreements, invoices, etc.).

• Be transparent about the source of funds—even if your funds are legitimate, having supporting documentation helps avoid delays.

• If you are acting via a company or on behalf of someone else, be ready to provide beneficial-owner information and chain of ownership.

• Understand that these checks are standard and not a personal judgement—they are required by law for all clients.

📣 Our Commitment

We are committed to operating in full compliance with the AML/CFT legal framework of Mauritius. Your cooperation in providing the requested documents is key to ensuring a lawful, smooth and efficient property transaction. We appreciate your understanding and assistance.