Ask AI: procedure to buy property in informal sector in points

1. Research and find a suitable property: Look for properties within the informal sector by searching local ads, online classifieds, social media groups, or even word-of-mouth from friends or family members. 2. Investigate the ownership status: Informal sector properties may not have proper documentation or registry. Find out the current ownership status of the property and whether any disputes are involved. 3. Hire a local expert or legal advisor: Engage a local expert or legal advisor familiar with the informal property sector to assist you in navigating the complexities of the purchase process. 4. Conduct a physical inspection: Visit the property and conduct a thorough inspection to ensure it meets your expectations and requirements. Check for any defects or issues that may need to be addressed before the purchase. 5. Negotiate the price: Negotiate the price of the property with the seller, keeping in mind the prices of similar properties in the vicinity. 6. Draft a written agreement: A written agreement should be prepared outlining the terms and conditions of the sale, including the purchase price, payment terms, and any other relevant clauses. 7. Verify the seller's identity: Verify the identity of the seller and ensure that they have the legal authority to sell the property. 8. Obtain necessary documents: Obtain any available documents related to the property, such as a title deed, sale agreement, or temporary permit issued by the local authorities. 9. Secure financing: If you're not paying cash for the property, secure financing through a bank, credit union, or other reputable lending institution. Be aware, however, that financing for informal sector properties may be more challenging to secure. 10. Make the payment: Make the agreed-upon payment to the seller, preferably through a secure and traceable method, such as bank transfer or an escrow account managed by a trusted third party. 11. Register the transfer: In some cases, it might be possible to register the transfer of ownership with local authorities to formalize your possession of the property. Be prepared to pay any required fees and taxes associated with the transfer. 12. Obtain possession: Take physical possession of the property, and ensure any necessary utilities, such as electricity and water, are set up in your name. Keep in mind that buying a property in the informal sector carries a higher level of risk due to potential legal complications or disputes. Always exercise caution and seek advice from a knowledgeable professional before purchasing.