Barbados Real Estate – What You Need To Know About Buying character In Barbados
A guide to buying real estate in Barbados
There are no legal restrictions for non-nationals wishing to buy real estate in Barbados. However, due to the peculiarities of local conveyance laws, the absence of title insurance, unregistered land titles and other factors, an attorney is required to buy character in Barbados. This article focuses on the steps required to close the deal once you have completed your negotiations with the seller.
The Agreement for Sale
Once your negotiations are complete, your attorney will liaise with the seller’s attorney and prepare the agreement for sale. Once the agreement is signed, it is customary that the buyer will put down a place of 10% of the buy price. The agreement, together with the place, is then delivered to the seller’s attorney. The seller will then sign the agreement, and a copy of the agreement is then delivered to the buyer’s attorney.
Investigation of Title
The next step is for your attorney to conduct a search against the title to the character to ensure that the seller holds a good legal title to the character and that there are no encumbrances such as mortgages, charges or liens affecting the character. Encumbrances may also take the form of unpaid judgments, noticeable water bills, and unpaid land taxes.
Completion of the Sale and buy
Once the title search is complete and all encumbrances are cleared, the seller’s attorney will then prepare the conveyance documents for closing. Upon closing, the seller’s attorney will typically exchange the conveyance documents, along with prior title deeds, for the balance of the buy money.
Financing for non-nationals
There are mortgage options obtainable for non-nationals. The Barbados mortgage market is not as mature as the US or UK market and consequently does not offer the breadth of mortgage options obtainable in those more mature markets. However, attractive terms are nevertheless obtainable, with loan to value ratios up to 70%, 20 year terms, interest only options and rates tied to LIBOR. Mortgages are obtainable in US and Canadian dollars in addition as Sterling and Euros.
The seller of the character will be liable to pay stamp duty and character taxes. Stamp duty is currently charged at the rate of 1% of the buy price. move tax is charged at the rate of 2.5% in respect of land where there are no buildings; and in the case of land with buildings, 2.5% on the amount by which the greater of the buy price or value of the land exceeds $125,000.
The attorney’s fees are regulated by the Barbados Legal Profession Rules 1997 which assign a minimum fee scaled to be charged by attorneys acting in specific non-contentious matters. The fee charged is a varying percentage of the cost of the character being purchased. The extent fee is a minimum fee, and the attorney is entitled to increase the fee to take into the account his years of experience and the complexity of the transaction. An additional 15% charge of VAT (Value additional Tax) is payable on the attorney’s fees.
The article is not intended to be exhaustive, nor is it an adequate replace proper legal advice. Anyone considering purchasing real estate in Barbados is strongly promoted to acquire local legal representation and tax advice in connection with any hypothesizedv buy of character in Barbados.