Issue of Non-Acquisition Certificates

1. Introduction

When a person mortgages or pledges his property and applies for a loan from a financial institution, the financial institution concerned requires the loan applicant to produce a Non-Acquisition Certificate obtained from the relevant local authority. Non-Acquisition Certificate is a certificate issued by the local authority to the effect that no condition has arisen affecting the acquisition of any immovable property. The local authority acquires any immovable property in case of default in payment of any amount due to the local authority. The relevant arrears will be recovered by the seizure and sale of the immovable property by the local authority. This certificate does not imply any connection with the process of land acquisition for any development work. This certificate is valid only for a period of 6 months from the date of issue.

2.     Applicable Legislation

        (a)   Sections 158, 159, 161, 162, 163, 164, 165, and 166 of the Pradeshiya Sabhas Act, No. 15 of 1987.

3.   Eligibility

(a) The person whose name is mentioned as the legal owner of the property in the assessment register will be entitled to request for the certificate.

(b) If such certificate is requested by any person who is not the legal owner of the property, the legal owner shall have authorized him in writing to do so.

(c) By the date of application for the certificate, all fees due to the local authority must have been paid.

4.      Fees

         A fee as determined and published in the gazette by the local authority from time to time will be charged.

         Note:       the fee charged should be reasonable.

5.      Documents to be Submitted

(a) A request made in the form of a letter mentioning the address and assessment number of the property

Note: (1) When the applicant is not the legal owner of the property, a letter issued by the legal owner and attested by a Justice of the Peace, stating that the owner has no objection to the release of the information to the applicant and that the applicant is duly authorized to obtain the information.

(2) All amounts due to the local authority at the time of application should have been settled

6.     Application Procedure

procedure	Duration	Responsibility
Receive request letter for		Officer of Front Office
Check whether any amount is due to the local authority and inform applicant to pay Non-Acquisition Certificate issuing fee and the dues if any.	At the time of receiving application	Officer of Front Office
Charge relevant fees and issue a receipt	At the time of receiving application	Officer of Front Office
Issue Non-Acquisition Certificate	At the time of receiving application	Officer of Front Office

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