Consumers Must Exercise Caution When Buying Land

The following is special feature from the Consumer Council of Fiji in a bid to educate and create awareness for consumers when buying Land.

Consumers pay exorbitant sums of money for land. It is the only asset that appreciates in value.

Some save for years before they can even afford to make a deposit.

Others take loans with exorbitant interest rates. Consumers commit to this because in the long run, they know they have something to call their own and will be able to sell it for more value in the future.

Land management in Fiji

Land in Fiji is primarily managed through three different systems.

Native land

Native Land is owned by village groups, or land - owning units. Usually, an area of land is set aside for the village site and the rest of the land is native reserve. Land in this native reserve can then be used for development by either a short - term or long - term lease.

Leases of native land are made available through the Native Lands Trust Board now known as the iTaukei Lands Trust Board (TLTB).

The Trust Board is a statutory body that administers all native land leases on behalf of the native land owners. All applications for lease must be made to the board before any developments can take place.

Freehold land

Freehold land comprises of around 10 per cent of the land in Fiji. Freehold land is registered under the Torrens system of land registrations by which the titles of land are guaranteed.

Under this land registration and land transfer system, the state creates and maintains a register of land holdings. In Fiji, this register lies with the Registrar of Titles. Freehold land can be purchased, transferred, or leased, subject to the conditions of the Land Sales Act.

Crown land

Crown land comprises of close to 10 per cent of land in Fiji. It is administered by the Department of Lands. Similar to native land, crown land is not usually sold, but is leased. These are granted and managed by the Director of Lands.

Land sales and the law

All land dealings in Fiji must be in writing. This is a requirement under the Indemnity, Guarantee and Bailment Act (Fiji) CAP 232). This especially includes the sale and purchase (S&P) of land. Whilst there is no requirement that a solicitor prepare the S&P, they are often engaged to draft and execute the same.

Sale of freehold land does not require any consent from statutory bodies. It only requires the usual taxation requirements from Fiji Revenue and Customs Service. The board and State land needs prior consent of these statutory bodies prior to engaging in any dealings with land. Consumers are reminded that any dealings for native land reserve made without the board has no legal standing. Foreigners cannot buy freehold land within the municipality region. They can only buy freehold land outside the municipal area s.

Mataqali land

There is a common misconception among many that because an individual is part of a landowning u nit they have legal standings to sell land. Consumers are reminded that land even on native reserves and village sites are always administered communally. This would mean any agreement of land development would need consent from 60 per cent of all mataqali or clan members who are over the age of 18.

Case study

Late last month, the council received of a complaint from a couple who sought to buy land.

They paid $20,000 and were assured a piece of land where they could build their home.

They later found however, that the individual was not the outright owner of the land. The couple did not conduct a title search and had no documentation to support that they had made the payments for the land. They were also unable to contact the individual who purported to be the sole owner of the land. As a result, the couple lost all the funds that they had paid for the piece of land.

Consumer tips on purchasing land

Consumers should ensure that any sale and purchase of land being negotiated must be in writing with express terms outlining roles and responsibilities of each party (vendor or purchaser).

Review document or agreement for any termination clauses which highlight available remedies to any party suffering loss as a result of breach of agreement.

Exercise due diligence in enquiring with respective statutory bodies the nature of land you are intending to buy (what type of land it is) and if it is free from all encumbrances (charges) over it.

Consumers intending to purchase land must demand to see a proper title of the property to verify if the vendor is the actual owner of the property. This must be done before any agreements or payments of monies for either a deposit or settlement. Consumers who need further advice on issues pertaining to land sales can contact the Consumer Council of Fiji on the National Consumer Helpline number 155.

Alternatively, they can email their complaints to COMPLAINTS@CONSUMERSfiJI.ORG