Part 0: The fundamentals
Real-Estate Guide in Madagascar
Before investing, understanding Malagasy land law is essential. This guide summarizes the key rules, common pitfalls, and best practices for buying safely.
Introduction
Land rights in Madagascar inherit three successive layers: customary law (tanindrazana, land of the ancestors), colonial law (Torrens land registration of 1896), and modern law (law 2005 creating communal land certificates). This layering explains the diversity of statuses and the importance of documentary verification.
Land statuses
Five statuses coexist. 2P2I only accepts the first three.
- Land title
- Land title (definitive registration): maximum legal security, unassailable except in case of fraud.
- Land certificate
- Land certificate (law 2005-019), issued by the communal land office. Valid, but requires boundary verification.
- Old cadastre
- Old cadastre, accepted only with a recent LSC confirming no dispute.
- Untitled
- Untitled: de facto possession without title. Refused.
- Tanindrazana
- Tanindrazana: ancestral land, governed by customary law. High-risk transaction. Refused.
The land title
The land title, produced by the Land Registry, identifies a plot by a unique number (T.F. n° XXX-YYY) and records all successive registrations (mortgages, sales, easements). It is the equivalent of a property register opposable erga omnes.
The land certificate
Created by the 2005 land reform, the land certificate is issued by a commune's land office after a contradictory inquiry. It recognizes the private ownership of a customary holder and grants rights close to those of a land title, provided the procedure was conducted properly.
The Legal Status Certificate (LSC)
A document produced by the Land Registry that lists, at a given date, all registrations encumbering a title: successive owners, mortgages, oppositions, seizures. 2P2I requires an LSC of less than 90 days for any property listing.
Co-ownership & spouse consent
In Madagascar, successions are often settled late: a property may remain in co-ownership between several heirs. Selling then requires either a prior partition or the express consent of all co-owners. Similarly, a property acquired during marriage requires the spouse's consent.
Foreign buyers
Law 2005-019 prohibits direct land ownership by non-Malagasy nationals. Three structures allow investment:
- Emphyteutic lease
- Emphyteutic lease 18-99 years: near-full enjoyment, transferable.
- Malagasy SARL
- Malagasy SARL company with ≥ 20% Malagasy capital holding the property.
- Malagasy spouse
- Malagasy spouse with an appropriate matrimonial regime.
A notary and, ideally, the foreign buyer review of the 2P2I Verification service are recommended to secure these structures.
Common pitfalls
- A 'sale agreement' signed privately without registration on the land title has no binding legal value.
- The same plot can have several 'owners' each claiming an old or customary title.
- The cadastral boundary may differ from the physical reality: only an official surveyor's opinion prevails.
- A Fokontany attestation is not a title deed; it is a record of occupation.
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