In short
Military restricted zones and security zones are areas in which foreign individuals cannot acquire property. The check is carried out by the land registry after an application for transfer is made.
The purpose is straightforward: to limit foreign ownership around certain military facilities and strategic areas. If the check returns a negative result the transaction cannot complete. This is not a fault of the seller or the buyer; it is a restriction arising from the property's location.
The process used to take weeks and was the most uncertain step in a purchase timetable. The system has become largely electronic over time and the waits have shortened, but the duration can still vary with the property's location. The check is repeated even where a sale to a foreign national has previously been made on the same plot.
Why it matters to an investor
This step is the only real uncertainty in a foreign buyer's timetable. It has to be accounted for when the delivery and payment schedule is set out in the deposit agreement. The contract should also carry a clause on returning the deposit should the check return a negative result.