“Not to Get Tricked in House/Land Transaction”
Running a land transaction business requires care to not be tricked. Thus, one needs to be careful before doing the transaction. Here we have examples of tricks often used in transaction of house and land.
- For allocated land, the buyer must first check whether the seller is licensed for land allocation. If the latter is not licensed, benefits from the seller or project are minimal or less compared to legally licensed allocation. Before signing the trade agreement, the buyer should ask the seller whether they are legally licensed and verify their claim by checking their license and project plan to prevent fraudulent acts. After deciding to buy, the buyer should check whether the actual land plot matches with the project plan, because inconsistency between the plot and plan may, after the land ownership transfer, result in construction on someone else’s plot which would lead to numerous problems.
- The next item to be verified is whether the seller is the same person with the land owner. There are cases that the seller attempt to sell someone else’s land, which lead to lawsuits and problems as the buyer does not receive land ownership after payment.
- Carefully inspection of the agreement is critical. In case of dispute, lease and trade agreements are two different types of contracts, with difference in punishment for defaulting. Lease agreement should be avoided.
- For purchase of land with house, verify that the seller clearly specifies the “sale of land with house” part, because some sellers attempt to avoid tax by transferring ownership of only the land, not the house, resulting in further problems.
Tips for buying house and allocated land.
- Purchase house and land only from licensed land allocator.
- Verify the seller’s allocation license with the local land office
- Verify availability of public utilities or common services such as road, clubs, swimming pool, gyn, school, play park, garden, etc., compared to advertisement
- Land ownership transaction must be registered with the land office authorities.
- Be careful with tax evasion attempts for transaction of land with house by transferring only land ownership not the house.
Tips to protect yourself from fraud.
- Do not lose your land deed or important documents, keep them well.
- Do not enter into loan agreement that uses land deed as a collateral (the deed could be forged).
- Do not give your land deed to anyone, the deed could be switched, or used in forgery.
- Do not sign the blank Power of Attorney, and the attorney must be trustworthy.
- Before buying, accepting mortgage or consignment of the land, the land deed (or other documents if any), along with location and condition of the land must be verified.
- Do not trust the agent too much.
- Buy land only from trustworthy person, i.e. having a land allocation license.
- Check registration and actual condition of the land.
- Check evidence of registration, you may check with the local land office via mail.
- Registration at the land office is compulsory for legal acts pertaining to land.
- Do not believe advertisement or persuasion from the agent Always check location of the land proximity to roads, and land condition before buying.