Key takeaways
- Never pay a deposit before you have seen and verified the documents.
- Verify the seller, the land and the approvals separately.
- Pay through traceable channels and insist on a written agreement.
Most stand disputes start the same way: the buyer was excited, the seller was persuasive, and the checking was left for later. Do it first.
1. Who is the seller? Ask for ID and proof that they own, or are authorised to sell, the land. If a company or cooperative is selling, ask for its registration documents and proof of who can sign for it.
2. What exactly are they selling? Get the stand number and the layout plan or diagram. Visit the site and confirm that the stand you are shown is the stand on the paper.
3. What does the paperwork say? Is it a title deed, lease, offer letter or cession? See the first article in this series. Then check at the issuing office, whether that is the Deeds Registry, council or relevant authority, that it is genuine and current.
4. Is the layout approved, and are services planned? Ask whether the subdivision and layout have been approved by the relevant authority, and who is responsible for roads, water and sewer. An unapproved layout can mean you build on land you cannot register.
5. Are there debts or competing claims? Ask for rates and levy clearance, and check whether the land is mortgaged or subject to any other claim.
Before you pay
- Get a written agreement of sale that names the parties, the stand and the price.
- Pay by bank transfer or another traceable method, and get a receipt for every payment.
- Have a lawyer read the agreement first. A small fee now is cheaper than a lawsuit later.
If the seller pressures you ("other buyers are coming today"), treat it as a warning sign.
This article is general information, not legal advice.