Legal Due Diligence in Mauritius Property Transactions

The purchase of real property in Mauritius involves a number of legal requirements that must be addressed before exchange of contracts. The Non-Citizens (Property Restriction) Act 1975 restricts the right of non-citizens to hold property, subject to certain exceptions.

Ownership Restrictions

Non-citizens may acquire property without a permit in the following categories: apartments in approved developments, properties within Integrated Resort Schemes, properties within Real Estate Schemes, and properties within Property Development Schemes. For all other property, a non-citizen must obtain a permit from the Prime Minister's Office under the Non-Citizens (Property Restriction) Act 1975.

Title Search

A search at the Land Registry is the starting point. The search establishes the identity of the registered proprietor, the chain of title, and any encumbrances, mortgages, liens, or charges registered against the property. Section 8 of the Land Registration Act 2009 provides that the register is conclusive as to the title of the registered proprietor, subject to the power of the court to rectify the register.

In Property Partnership Holdings Mtius Ltd v Tostee [2020] SCJ 65, the Supreme Court considered the implications of a defective title and the remedies available to a purchaser where the vendor was unable to deliver good title.

Planning and Environmental Compliance

The Physical Planning and Development Act 2004 governs the use and development of land. A certificate of urban planning use must be obtained from the Chief Executive of the Physical Planning Authority. Properties in coastal areas are subject to the Coastal Zone Management Act 2004.

Transaction Process

The standard process involves an agreement to purchase subject to conditions precedent, a deposit (usually 10 per cent of the purchase price), completion of due diligence searches, execution of the transfer deed before a notary, and registration at the Land Registry.

Costs

The principal costs are: a registration fee of 5 per cent of the declared value, notary fees of approximately 1 to 2 per cent, and stamp duty of MUR 20 per page of the transfer deed.

This article is for general information purposes only and does not constitute legal advice.