Getting ready to make an investment in real estate is always an exciting moment, and Madagascar is full of prime areas in which to buy. However, with the lengthy bureaucratic processes that are still heavily reliant on paper records, ensuring you are getting what you paid for can be challenging.
Here are a few hints from our resident expats who have taken the same exciting step and navigated the potential scams one is exposed to while buying real estate in Madagascar.
Go with your intuition: if it sounds too good to be true….
What can we say about this that hasn’t been said a million different ways? When looking at a piece of real estate, always consider the price: if it sounds too good to be true, it probably is.
Unfortunately, given the poverty levels in Madagascar, many scammers are looking for their next victim and will tempt you with direct access or an “easier way” to an “amazing deal.” It pays to do the research beforehand, and Madagascar Invest is here to accompany you and guide you in the real estate purchase process.
Locals tip: There are many websites for expats but the most frequented site where you can have immediate access to on-the-ground real estate information are Facebook groups dedicated to expats in Madagascar.
If you have questions about land in specific areas, pop into one of those groups and ask your question. Many of us love to help out. This can give you an idea of the land prices and the current local context.
Ensure the property is “titré borné” (titled and bound)
When buying real estate in Madagascar you will come across two property types:
- Titré borné: means the land has been titled and legally registered under the owner.
- Non-titré non borné: non-titled land, which means an occupant has been inhabiting the property for a very long time and now has an acknowledgement of their inhabitants of the parcel.
Always make sure to purchase land that is titré borné. Non-titled land papers are only acknowledging residency, meaning the land is potentially owned by another owner, but has not been claimed for an extended period. This significantly increases the risk that at some point in the future, the titled owner will return to claim the property.
While a non-titled property might be enticingly cheap, the titling process is painstakingly lengthy and challenging for even locals to do. Purchasing land that is not titled significantly increases the risk that your purchase is a scam or that you will have future complications with the appearance of a legal owner.
For a preliminary check: all titled lands have a book that includes all necessary details. You have the right to ask the land owner to see the book and can verify immediately that the name of the registered owner is the person you are talking to and the parcel in the book is indeed the parcel you are looking at.
Always seek the services of an official notary public
A notary public is always the recommended route to take, to avoid getting scammed when purchasing real estate in Madagascar. Although there will be a fee for their services and a cheaper alternative (written accord) may be offered, not using the services of a notary poses significant risk of a potential scam.
Once a notary has the appropriate information, they will do the necessary research to ensure the land is correctly and legally titled and owned by the seller, as well as ensuring all paperwork is in order. It is their responsibility to check for valid documents, especially the titling, and ensure everything is legal before transferring ownership.
With the risk of falsified documents high in Madagascar, it is highly recommended to have a notary handle this step of the purchase process.
A few extra things to consider:
While you are considering where to make your real estate investment, here are a few additional points to consider to reduce the risk of a potential scam:
Visit the land registry office
To take an extra precaution before making a land purchase, always investigate the land title with the “Domaine” which is the land registry office for the locality.
The Domaine deals with the registration and exchange of land titles and can validate the status of a land parcel for you as well as the legally registered owner. A notary public will include this step in their work, but if you want to be extra cautious, you can do it yourself as well.
Pay for nothing before the notary has done their work
Scammers and intermediaries will often ask for a payment of some kind to “hold” a property, however this a major red flag for anyone interested in making a real estate purchase.
Any type of advance payment that cannot be proven in documentation is as good as gone; even with a signed piece of paper it will be difficult to reclaim the amount. Once the notary public has finished their research and has determined that all documentation and identification is in good order, you can then proceed with the payment process before returning for the final signature at the notary public’s office.
Land sellers are very aware of this process and, unless they have something to hide, will respect your interest to wait until the proper checks have been finished.
Take a walk around the neighborhood
An excellent way to investigate before making your purchase is to take a walk around the property and its neighborhood and have a chat with the neighbors. If language presents a barrier, find a local you can trust (preferably someone with no personal interest in the purchase) and ask them to accompany you.
Engaging in discussions with your future neighbors can reveal the context and clues behind the sale, including occupant history, any family or related drama related to the purchase (that could lead to future legal complications for you), and sale status. A walk around the area is an excellent way to reveal hidden clues to help you steer clear of a scam before it’s too late. Buying real estate in Madagascar is an exciting moment for anyone, whether it be for a future business or personal residence and nothing can be worse than realizing you are the victim of a scam. It pays to take the time and ensure all the above steps are covered so that you can feel more confident with your purchase and free to look forward to the next steps!
Getting ready to make an investment in real estate is always an exciting moment, and Madagascar is full
