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New Law Proposed to Curb Risks in Informal Home Sales

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Public members have proposed the introduction of legislation to prohibit the sale of homes within informal settlements. This initiative follows a statement from the Ministry of Housing and Community Development, which cautioned prospective buyers to be extremely careful when considering properties in informal settlements due to the frequent lack of access to basic services like electricity, water, and sanitation.

The ministry’s statement highlighted that purchasing properties in these areas can severely affect residents’ quality of life and health. It noted that there have been numerous cases of unsuspecting buyers who have invested large amounts of money in properties only to find themselves facing eviction without proper ownership documentation.

One specific incident mentioned involved an individual who paid $10,000 in cash for a home located in an informal settlement. Despite the upfront payment, the buyer did not receive any official documentation proving ownership. Subsequently, the original landowner reappeared, claiming ignorance of the sale and ordered the individual to leave the property.

The ministry strongly advised potential homebuyers to seek properties in established, legally recognized neighborhoods that provide more security, stability, and access to essential services. It emphasized that while informal settlements may present cheaper housing options, they usually lack necessary infrastructure and legal safeguards, exposing residents to eviction risks and developmental uncertainties.

In Fiji, informal settlements are commonly constructed on land that is not legally owned or leased, raising the instability of any property transaction. Residents in these areas can be evicted without prior notice, which puts them at risk of substantial financial losses and displacement.

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