Important Documents Required for a House Registration in Sri Lanka

December 4, 2020
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Every Property is supposed to have certain legal documents that show the overall information about the property. These documents are provided by the local municipality and also other government departments. Planning to buy a property? Well, get ready for major paperwork as the process involves providing (to authorities and the bank in case you are taking a home loan) and acquiring several documents (this ensures your ownership over the property). Here is a list of documents that are required for buying a House:

Title Deed of the House

Every Property in Sri Lanka has a Deed which is a formal document that confirms the interest, right, for the property and Title is a legal term that establishes the lawful ownership of a property owned by an individual or an organization. The “Title” is very important because it establishes the history of the property and it shows how ‘healthy’ is the property. The accepted practice is to check the pedigree of the “Title” going back 25 to 30 years. Therefore, the first step is to get the title clearance through an independent Lawyer/ Notary Public whom you can trust.

Certificate of Conformity (COC)

The Certificate of Conformity (COC) is a formal certification that approval or certificate of conformity is granted to a product that meets a minimum set of regulatory, technical, and safety requirements. It is important to obtain the Certificate of Conformity (COC) and it ensures that the House fulfills all the safety requirements of the Municipality.

Approved Lot Plan of the Land

Every Land has a master plan in which every plot of land is surveyed and there is a approved lot plan that is approved by the government. This approved documents is essential in the registration process.

Certificate of Ownership

This is an approved and certified certificate that shows the actual owner of the property or HOuse. This document is also very vital in the registration process. It is provided by the Assessment Department of the relevant Municipal Council in the respective District or City.

Non-Vesting Certificate

Non-Vesting Certificate is also an important document that is required for the House registration and it is obtained by the relevant Municipal Council in the respective District or City.

Street Line Certification

This is also a formal document that is certified and issued by the local Pradeshiya Sabha and this document will clarify the actual street line of the property. The importance of this certificate is that the Pradeshiya Sabha is empowered to take action on building constructed by violating the street line.

Extracts of the House

Extracts are a formal document that shows the overall history of the land and it is essential to check the extracts of a certain land before purchasing it. This document is proof that the property has an entry in the local municipal records and the construction has been done according to an approved plan. Banks ask for this paper before granting you a home loan. It is important to obtain extracts of the land going back to at least 25 – 30 years.

Valuation

Valuation is a formal document that is obtained after the Licensed Valuer values the House in order to show the overall value of the House. The Valuation Process is important because there is a part in the registration process where the buyer has to submit the actual value provided by the valuer to the Inland Revenue Department and then they approve it in order to pay the stamp duty.

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Important Documents Required for the Land Registration in Sri Lanka

December 4, 2020
1

Every Property is supposed to have certain legal documents that show the overall information about the property. These documents are provided by the local municipality and also other government departments. Planning to buy a property? Well, get ready for major paperwork as the process involves providing (to authorities and the bank in case you are taking a home loan) and acquiring several documents (this ensures your ownership over the property). Here is a list of documents that are required for buying a Land:

Title Deed of the Land

Every Property in Sri Lanka has a Deed which is a formal document that confirms the interest, right, for the property and Title is a legal term that establishes the lawful ownership of a property owned by an individual or an organization. The “Title” is very important because it establishes the history of the property and it shows how ‘healthy’ is the property. The accepted practice is to check the pedigree of the “Title” going back 25 to 30 years. Therefore, the first step is to get the title clearance through an independent Lawyer/ Notary Public whom you can trust.

Approved Lot Plan of the Land

Every land has a master plan in which every plot of land is surveyed and there is a approved lot plan that is approved by the government. This approved documents is essential in the registration process.

Certificate of Ownership

This is an approved and certified certificate that shows the actual owner of the property or land. This document is also very vital in the registration process. It is provided by the Assessment Department of the relevant Municipal Council in the respective District or City.

Non-Vesting Certificate

Non-Vesting Certificate is also an important document that is required for the land registration and it is obtained by the relevant Municipal Council in the respective District or City.

Street Line Certification

This is also a formal document that is certified and issued by the local Pradeshiya Sabha and this document will clarify the actual street line of the property. The importance of this certificate is that the Pradeshiya Sabha is empowered to take action on building constructed by violating the street line.

Extracts of the Land

Extracts are a formal document that shows the overall history of the land and it is essential to check the extracts of a certain land before purchasing it. This document is a proof that the property has an entry in the local municipal records and the construction has been done according to an approved plan. Banks ask for this paper before granting you a home loan. It is important to obtain extracts of the land going back to at least 25 – 30 years.

Valuation

Valuation is a formal document that is obtained after the Licensed Valuer values the land in order to show the overall value of the land. The Valuation Process is important because there is a part in the registration process where the buyer has to submit the actual value provided by the valuer to the Inland Revenue Department and then they approve it in order to pay the stamp duty.

Current Real Estate Market Conditions in Sri Lanka

February 1, 2022
0

Real Estate Market in Sri Lanka

The real estate market is one of the recently emerging markets in the territories of Sri Lanka. Since this is quite a market related to the concept of urbanization, the market is established mostly in highly commercial areas such as Western and Southern provinces in the country. Yet, one can witness that it has become a major part of other areas as well, rooting in initial levels. However, this is such a market that can be affected by a slight change in the economic system in the country since this deals with properties that are a part of the inhabitants in it. You may be wondering now what this so important market is? The real estate market is the market where the properties containing lands and buildings are involved in commercial dealings particularly in purchasing and selling. Therefore, it is a market that moves forward with the ups and downs of the economic and financial conditions of the country. 

History of Real Estate Market in Sri Lanka

The beginning of the journey of the real estate market in Sri Lanka runs back to the late 19s with small-scale initiatives. Back then neither the market nor the real estate properties had emerged to a visible extent. However, constantly evolving business technologies, minds, and personalities became responsible for changing the small-scale history into a larger scale present. As a result, this market embraced a significant position within the context of Sri Lanka towards the early 20s. Aftermath, it only developed and widened its territories rather than dropping down its value even by connecting the dots globally. Currently, as a booming industry, it has stabilized its potential by increasing the number of investments while marking the landmark of the real estate industry in Colombo. According to the contemporary scenario, investing in Colombo for a real estate property leads to an incredible fortune in the near future which comprises the 75%-80% multiplications of the investment itself. 

“Current value does not always matter, what matters the most is how valuable it can be in future”

Recent Changes Happened in The Real Estate Market in Sri Lanka

As mentioned above, Colombo, being the home of the market in Sri Lanka, contains a number of valuable properties around the city with an astounding demand from both the buying and selling parties. For instance, the apartment complexes in Ward place, Horton place, Barnes place, Maitland place, Alfred place along with the new projects such as sapphire residences, marina square, 146 Residencies, etc. are a few of them. Everything had been normal in the industry and market without any flaw until early 2020. Since this is a market directly affected by the economic status and the financial condition of the nation, the unfortunate hassles that happened in 2020 and 2021 caused impromptu changes in it. 

After the unexpected demissive Easter attack in April 2019, the slightly affected real estate industry worked on the recovery piling up promising anticipations towards 2021. Though the beginning of the year seems calm and fortuitous for the industry, the threatening storm of the Covid-19 pandemic hits hard on the market by turning the tables once again. As it puts a full stop to several industries in the country, similarly it almost showed a termination to the real estate market as well. The main reason for that was the decreasing foreign investments and lack of incoming foreign population. Since this is developed to be an industry that has a global stand, the traveling bans, export-import bans and physical barriers in between the countries could make a real change in the market. Apart from that, the economic crisis and lack of inland revenue also played a huge part in these revolutionary changes in the market. Lack of sophisticated people and environment is not a good place for the real estate market which always deals with purchasing and selling. 

Present Situation of The Real Estate Market In Sri Lanka

Currently, although the pandemic has not still seen its end, the real estate marketers are in the process of restating their position within the island. Though the country has not fully recovered from all the hazardous consequences of the pandemic, everything is getting normalized even amidst its presence. Hence, the real estate market also embraces their previous routines to a considerable extent without letting their industry fade out. Once again the buyers and sellers are in the process of building their future with the market and the developers are in the process of finding new dimensions to expand their workforce. This new normalized energy has shed fresh light on the market to continue with its acquainted operations while planning on the strategies to stabilize their stand even if another crisis rises. Thus, though the economy and the global connections are still wavering within the island, the real estate market is back on the action to overcome the challenges they faced during the uncertain past two years for a more certain and hassle-free future. 

“Navigating the industry with the current resources will bring it to another level when the things become really normal one day”  

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