This guide provides a detailed explanation of every document you'll need to legally purchase property in Sri Lanka — whether you're a local buyer, a Sri Lankan expatriate, or an international investor from countries such as the United States, Canada, the United Kingdom, or Australia.
1. The Importance of Legal Due Diligence
Before signing any agreement or paying an advance, it's essential to conduct proper due diligence. This process ensures the property is free of disputes, encumbrances, or fraudulent claims. In Sri Lanka, the due diligence process typically includes:
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Title verification by a registered attorney-at-law.
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Surveyor's report to confirm property boundaries.
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Checking for mortgages, leases, or liens recorded in the Land Registry.
This legal groundwork protects buyers from future complications and provides confidence in the transaction's legitimacy.
2. Title Deed (Ownership Deed)
The Title Deed is the most critical document in any property transaction in Sri Lanka. It serves as proof of ownership and traces the property's legal history over at least 30 years.
A buyer's attorney must thoroughly examine this deed to confirm that the seller has a clear, undisputed title. The Title Deed may be referred to as:
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Deed of Transfer
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Gift Deed
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Partition Deed
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Last Will Transfer
For foreign buyers, it's vital to ensure the title allows foreign ownership under current regulations.
3. Certificate of Ownership and Non-Encumbrance Certificate
After the title verification, the Non-Encumbrance Certificate is obtained from the Land Registry. This document confirms that the property is not mortgaged, leased, or legally disputed. It verifies that there are no hidden liabilities attached to the land or building.
4. Survey Plan
A Survey Plan (also called a Cadastral Plan) outlines the exact boundaries, extent, and physical features of the property. It must be prepared and certified by a Licensed Surveyor registered with the Survey Department of Sri Lanka.
For foreign investors, the survey plan also helps confirm that the property's boundaries match what's described in the deed and that it's suitable for development or construction.
5. Tax Receipts and Certificates
Before a property is transferred, all government dues must be cleared. Key tax documents include:
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Assessment Tax Receipts – Proof of payment to the local municipal or Pradeshiya Sabha authority.
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Rates and Taxes Receipts – Ensures that all local taxes are up to date.
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Street Line and Building Line Certificates – Verify that the property is not affected by future government road expansion or construction plans.
6. Land Registry Extract (Copy of Folio)
A Land Registry Extract or Folio Copy provides an official record of the property from the Land Registry. This document shows ownership history, mortgages, caveats, or any registered instruments affecting the land.
7. Sale Agreement (Deed of Agreement)
Once due diligence is completed, the Sale Agreement is drafted between the buyer and the seller. This document includes:
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Sale price and payment schedule
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Property description and boundaries
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Responsibilities of each party
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Timeline for final transfer
A notary public or licensed attorney typically prepares this document. Signing it without legal guidance is not recommended, especially for foreign buyers unfamiliar with Sri Lankan real estate law.
8. Deed of Transfer (Transfer Deed)
The Deed of Transfer officially transfers ownership from the seller to the buyer. This deed must be signed in the presence of a Notary Public and registered at the Land Registry in the district where the property is located.
The notary ensures:
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The seller has the legal right to transfer the property.
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The buyer is identified correctly.
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The transaction complies with all local regulations.
9. Foreign Investment Approval Documents
For non-citizens or foreign companies purchasing property, specific restrictions apply. While foreigners cannot own freehold land in most cases, they may invest in:
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Condominium units above the fourth floor
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Long-term lease agreements (up to 99 years)
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Property purchased through a locally incorporated company
Foreign buyers must provide additional documentation such as:
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Passport and visa copies
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Board resolutions (for company purchases)
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Central Bank of Sri Lanka approval (if applicable)
10. Power of Attorney (If Buying Remotely)
Overseas buyers who cannot be physically present in Sri Lanka may appoint a Power of Attorney (POA). This legal document authorizes a trusted representative to act on behalf of the buyer during the transaction.
The POA must be notarized, legalized, and, if executed abroad, authenticated by the Sri Lankan Embassy or Consulate in the relevant country.
11. Stamp Duty and Registration Documents
To finalize the transfer, the buyer must pay the required stamp duty, usually calculated as a percentage of the property's market value. The notary will prepare the necessary registration forms and stamp duty payment receipts, which are then submitted to the Land Registry for registration.
Once the registration is complete, the buyer becomes the lawful owner of the property.
12. Additional Documents for Land with Buildings
If the property includes an existing building, additional records may be required:
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Building Permit and Plan Approval from the local authority.
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Certificate of Conformity (COC) confirming that the building complies with approved plans.
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Utility bills (water, electricity, and telephone) to verify active and lawful connections.
13. Final Legal Review and Possession
After completing the registration, the buyer's lawyer should verify:
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The Deed of Transfer is correctly recorded.
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No new encumbrances have been registered.
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All taxes and fees are paid in full.
Only after these verifications should possession of the property be taken.
Purchasing property in Sri Lanka involves careful legal preparation, professional advice, and proper documentation. Whether you're a local resident or an international investor from the U.S., Canada, the U.K., or Australia, ensuring every document is in order protects your investment and gives you full peace of mind.
From title verification to final registration, each legal document plays a crucial role in securing your ownership rights and avoiding future disputes. Working with a qualified notary public or property lawyer in Sri Lanka is the most reliable way to make your real estate transaction smooth, transparent, and legally sound.
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