Buying Property in Trinidad y Tobago
The process of buying land and property in Trinidad and Tobago is similar to many other Caribbean nations and the rules are not much different from those for the locals.
Foreigners and foreign companies are allowed to purchase up to one acre of land for residence and/or up to five acres for commercial purposes without applying for a license. An Alien Landholder License must be acquired from the government for any purchases above these sizes.
After a buyer finds a property, a sales agreement is signed basis the verbal agreement between the buyer and the seller. This agreement consists of all the clauses agreed upon by both parties. An initial 10% payment is made by the buyer that is held in escrow as per the contract that binds both parties. Under normal circumstances, the remainder of the payment is done after 90 days of signing the sales agreement and it is during this time that verification of all paperwork is done.
Once the sales agreement is signed, a local attorney on behalf of the client has to perform a title search. Simultaneously the buyer must verify from the utilities and Water and Sewage Authority (WASA) to make sure that all taxes are paid till the point of acquisition. It is this part of the purchase that is the longest with the response time of WASA being up to 6 weeks.
The closing is initiated after the title of the property is verified and all records checked. Closing Fees is a total of Stamp Duty, fees of attorney, and insurance costs for the dwelling. A Memorandum of Stamp Duty has to be submitted to the Board of Inland Revenue for assessment of Stamp Duty prior to closing. After closing this memorandum is taken to the Board of Inland Revenue for payment of duty. Upon payment, the Memorandum of Transfer is stamped and the buyer can then present this for registration with the Land Registry.
A Return of Ownership form for the change in ownership is prepared by the Land Registry for paying property taxes.
Buying Property in Haiti
Purchasing a property in Haiti is a time consuming process and therefore a foreigner should opt for a deft notary and real estate agent to speed it up. Once a buyer selects a property, he/she must check when the last survey was done on the property. If it is over five years, then a new survey needs to be done again.
The Dean of the Civil Tribunal Commune where the property is located- gives authorization for the survey after a file containing documents of previous survey and sale of property is presented to him. This process can take up to 20 days.
When the survey is done, all those who share a border with a property are invited to witness the survey. The completion of survey can take between 10 and 90 days. In case anyone presents request for a “refre’” once a survey is initiated, the survey is suspended till the matter is resolved.
While this is done, the notary chosen by the buyer must prepare a Bill for Sale. The usual notary fees is 1% but Notary Association of Port-au-Prince charges 6% of the sale price which consists of 2% professional fees and 4% capital gain tax, transfer tax etc. which the notary pays to the concerned authorities. There is additional VAT that is paid by the seller but held by the notary public until he/she decides to transfer it to the Direction Generale des Impots.
The Bill of Sale agreement is then deposited by hand to be registered in the Direction Generale des Impots. This procedure requires a fee of 1% of the property sale price in accordance with the “loi du 28 septembre 1977 sur l’enregistrement et la conservation fonciere”. This is usually done by the notary who charges this amount initially. However, this process can take between 6 to 9 months and once completed is when the sales procedure is said to be finished.
Buying Property in Bahamas
Bahamas encourages foreigners to buy a property on the islands. The International Persons Landholding Act Enacted in 1993 makes owning Bahamian property very simple. The process starts with the buyer registering the purchase with the Investment Board and paying a registration fee.
Foreigners can easily buy a single family home or vacant land without a permit. However, there are some cases where a permit is required. This is in case the property is undeveloped land of five acres or larger in size or it is not a private residence, or won’t be developed as such. Also, foreigners can lease or let their Bahamas property without permit unless for trade or business purposes.
If a permit is not obtained; given the choice of property meets the above criterion; the acquisition is rendered null and void. However, the purchaser can recover any money already paid in consideration of the acquisition.
Once the property is chosen, the title search fee of up to $500 is to be paid to the attorney. This is the legal price for the attorney who is responsible for verifying whether the property is good enough for purchase.
Also, the attorney sends a mandatory application is sent to Ministry of Finance for approval to purchase land on behalf of a non resident. Simultaneously, the owner should apply for the Annual Homeowners’ Residence Card. Then a down payment of 5 % to 10% of the property value is to be made. This amount is held and in case of defaults on payment, it is not to be returned.
Then a sales agreement is drafted by the attorney where the costs involved can go up to $500. After a green signal from the attorney about the readiness of property and agreement, the buyer pays the agreed amount to the buyer.
Upon transfer of property, a stamp duty is to be paid to the government.
Buying Property in Aruba
Foreigners can buy property in Aruba just as its residents can. There are two ways to purchase a property. Either one can purchase property on property land or else take a lease from the government for a period of 60 years, paying yearly lease. Mortgage for purchase is available through the local bank. The fee for closing the deal is a minimum of 1% of the loan amount or $500, whichever is higher.
It is advised that the purchase be made in foreign currency; as this makes it easy to deal with the rate exchanges.
For purchase, a buyer has to pay a transfer tax that amounts to 6% when the property value is higher than AWG 250.000 and 3% if lower. Add to this the notary fee which is approximately 1% to 2% of the selling price.
Once a property is chosen, one should make all agreements with the owner of the property verbally before drawing up a contract, to avoid any problems in future. A buyer should also ask for an inventory list from the seller.
When buying a property, all sales and legal work are handled by a local notary. This notary is chosen by the buyer, approved by the Aruban government of your choice and is appointed by the Dutch Majesty. After the notary is appointed, 10% of the property value is put in escrow. The transfer of ownership is completed only when the notary has registered a transcript of the deed of transfer of title in the public registers with the Department Land Registry Office and Public Registers.
Closing takes about 10 weeks, depending on the transaction.
The tap water in Aruba is desalinated by reverse osmosis process and is very pure and safe to drink. Most properties in Aruba don’t have standard warm water facility; however this could be installed on request.
Buying Property in Barbados
Barbados is a beautiful Caribbean island located well outside the hurricane belt. It is known for its gorgeous white sand beaches and friendly people, referred to as “Barbadians”. If you’d like to buy property on this little piece of paradise you are in luck because the Barbadian government makes it very easy for foreigners to buy property there.
If you want to live in Barbados or stay for any length of time you must show that you have a verifiable means of support and will not be a drain on the island’s resources. Otherwise, land and property ownership are subject to very few restrictions. You must get permission from the Central Bank of Barbados but this is just a formality. Non-nationals can buy any sort of property they wish.
Property transactions are done by lawyers and it’s advisable to deal with a real estate agent, as well. Legal fees will run about 2% of the total purchase price and the seller pays the property transfer tax, which is about 10% of the purchase price.
When you find a property you like a title search must be done. This takes up to three months, which you can use to find financing for your purchase. It’s difficult to get financing from a Barbadian bank but if you must, a realtor can be a big help.
Barbados has a vibrant, growing economy. Property values have risen steadily and are expected to continue. You can get a fairly roomy inland family home for about $200,000 or you can buy land and build your own. The West and Southwest coasts are the most costly; the East coast is best for those who enjoy surfing. If you’re on a budget you can buy a very nice inland apartment on a golf course for a reasonable price.
Buying Property in Jamaica
Jamaica is definitely a great place to buy property considering the fabulous weather conditions that exist there at all times. With a great deal of sunshine and warmth, it makes a choice destination of foreigners many of who would like to make it their home.
But buying property in Jamaica is not a very easy process and you need to take several points into consideration. The location of the property, the various costs related to taxes and insurance, attorney fee, etc need to be well thought-out before you take the giant step towards owning property in Jamaica. Places like New Kingston, Ironshore, West End, etc are considered areas of ‘demand’ and will cost you more, although the returns will also be greatly enhanced.
If you intend to purchase property in Jamaica, it is essential that you get to know the whole process of acquiring it. It goes without saying that whatever the type of property that you buy, be it residential, commercial, farmland or residential land, you need to strictly go in accordance to the real estate laws and regulations prevalent in Jamaica.
If you intend to purchase property through a mortgage loan, it is a good idea to source out financial institutions or other sources that provide such loans, even before searching for the property. This gives you a concrete idea about the exact amount that the lender would forward you to so that it becomes easier to purchase.
Once the property has been found and the offer is accepted by the seller, you need to ensure that the property has no other claims and that the title deeds are all in order. A land survey too has to be done to know the exact area involved. Now the buyer can lodge a caveat on the property so that till the transfer of the deed is completed, there will be no other claims.
The title of the land must be registered with the Office of Land and Titles before purchase and the owner of the land is provided with a copy of the title deed. The next step towards acquiring the property is the agreement for sale which is prepared by the seller through his lawyer. During the time of signing this agreement, the purchaser has to deposit about 10 to 20% of the value of the property as well as the stamp duty which is paid by both the buyer and the seller. Following this, an application to the Office of Registrar of Titles must be submitted by the purchaser and it should mandatorily be stamped within 30 days of transfer of property to avoid being penalized.
The final step towards clinching the deal gets over with transfer of the title deed in the name of the purchaser. The time taken for registering the property could go up to three months and depends on the mode of payment too.
Buying Property in Cuba
Cuba may be a good investment. Now that the old communist regime is waning with the retirement of Fidel Castro, the new leaders are beginning to loosen some important restraints. The trade embargo imposed by the United States may be more relaxed after the most recent elections are over and new opportunities could be in the works.
Cuba takes in billions in tourist dollars each year and has some of the most popular resorts in the world. The Cuban government has decided to relax its restrictions on foreign property owners and free up more land and established housing for purchase. However, at this time, properties are sold as 75 year leases rather than outright ownership. A lot can change in ¾ of a century! As of now, most Cubans own their own homes but are prohibited from selling them. If they want to relocate they usually trade houses and money unofficially changes hands.
So what can one do if property is not allowed to be sold? Cuba has recently decided to allow foreigner to buy property in new developments. You won’t be able, at this time, to buy any of the beautiful colonial houses or apartment buildings but new and modern developments are going up quickly in an effort to attract foreign investment to a tattered economy. And with the country still reeling from the hurricanes of 2008, prices are extremely competitive.
Property rights are said to be safe at the moment but things can and have been known to change very quickly in Cuba. Foreigners buying property in Cuba have to weight various risk factors such as the ability to re-sell their property, a potentially unstable government and, of course, the extreme weather conditions and damages in the hurricane season.