Buying Property in Guatemala

The property prices in Guatemala vary depending on the location. The foreigners can purchase the property just as the citizens. There are however, a few exceptions. A non resident of Guatemala cannot purchase a property next to rivers, ocean or any international border.

The buyer once has decided on the property to buy, discusses the price with the seller. Once a price is agreed upon, a seller needs to obtain a Certificate of Property Registry as a proof of exact fees and the title of the property. An official value of the property also must be obtained from the city’s municipality along with the registry numbers. The lawyer from the buyer’s side must also verify for any incumbencies. The buyer must verify whether the property has been gifted to or purchased by the seller. In case it has been gifted, he/she would need written permission from anyone with any legal interest in the property.

With the verification done and these documents are made available by a third agent or a notary chosen by the buyer; a sales agreement is prepared. Once this is signed by both parties and notarized, the buyer makes an initial payment as a deposit. This is held in escrow. The amount is forfeited in case the buyer cancels the deal.

Then a Public Deed is prepared in order to transfer the title. The buyer now has to pay the taxes and transaction costs for the deed. A point to be noted is that the Sales Tax is 12% of “Stated” value of the property. This can be as low as 10% to 25% of the amount actually paid. Once the required payments are done, the deed is sent to the Real Estate Office for recording. It is now that the remainder payment must be made. This transaction is then notified to the Municipality for tax purposes.

Buying Property in Panama

Panama is a beautiful country which offers a whole lot of opportunities in a variety of sectors and hence attracts a lot of foreigners into its fold. Other than a place of tourist attraction, Panama is also the chosen land for peaceful retirement and hence there are a growing number out there who wishes to invest their money into buying property in this country.

Panama offers basically three types of property: Government property, Squatter property, and Titled property.  Government does not give access to its property to foreigners and squatter property mainly consists of untitled property inhabited by poor people who have been living there for a long time. This leaves only the titled property the occupancy rights of which are the same for a foreigner as well as a national of Panama.

The first step towards buying your property would be to decide on a budget and identify it. Once that has been done, you will need to contact the owner of the property to agree upon a price suitable for both of you. On the part of the seller, he has to furnish the ‘Escrituras’ or the title of the property which gives a detailed description of the owner and the said property for your inspection along with a map of the area by which you can know the exact location and size. On your part, you can also request the seller for a ‘certificando de registracion’, which basically confirms that there are no leans or other legal problems associated with the property that you are interested in.

Once you have confirmed the authenticity of the documents, and the genuineness of the owner, you can proceed towards the next step, which is, obtaining a ‘bill of sale’, a document which is basically used for sales tax reasons. Once the copy of the document is received, you can approach the Notary Public to get the title of the property transferred to your name, for a prescribed fee.

Any money transaction takes place only after the documents are processed and signed by the chief notary. Most certified banks assist the foreign buyer in this regard. It is very important that you register the property by submitting it to the National Registry. This could take a few weeks at the culmination of which you are the proud owner of a property in Panama.

Buying Property in El Salvador

Buying property in foreign countries is on the rise these days. Previously, when people preferred to invest closer to home like France or Spain, these days, more and more buyers are sighting exotic and far off locales which definitely have the benefit of reaping profits. El Salvador, which is the smallest country in Central America has a land area of 20,720 sq.km, and is being considered by foreign investors as an ideal place to buy property.

Unlike some other countries, El Salvador does not put forth any restrictions in foreigners buying and owning land or other property in their country. In fact, it is possible for an outsider to hold a dollar account in their banks and make use of that account to avail of local finance in order to buy property.

Although buying property is quite easy in El Salvador as far as foreigners are concerned, it is imperative that they are aware of the various laws regarding property rights. One of the most important laws in this regard which applies to both nationals as well as foreigners is the one where an individual cannot own more than 245 hectares of land.

Another law regarding property ownership is that foreigners cannot own land in rural areas unless it is to be utilized for industrial purposes. This law, though, does not apply to urban locations in El Salvador.

Foreigners should also understand that the property they buy must be registered with the ‘Instituto Libertad y Progreso’, a registry that is controlled by the state. Any property brought in this country must be registered here. The most notable point is that all the records concerning the details of the owner and the purchase are totally computerized. Most countries in Central America adopt this sort of registry system and the main advantage is that this assures safety in ownership.

The foreign buyer needs to contact the notary for the legal sale agreement following which he needs to pay the registration fee of 0.63% of the total price of the property that is to be registered. The buyer also has to pay an extra 3% of the price, to facilitate transfer of Real Estate Tax following which the sale deed can be forwarded to the Registry office and finally to the Municipality, all of which can take a time period of nearly two months.

Buying Property in Costa Rica

Costa Rica allows foreigners to buy property with no restrictions.  There is a lot to choose from, too!  You have choices in houses, condos, farms, beachfront property, apartments and townhomes.

If you think you would like to buy a piece of land and build your own dream home, be sure to ask if you have ownership rights or occupation rights. If it is occupation rights, that means that the land has not been registered and a title search can’t be performed. The process to register the land is long and arduous and you may not want to enter into a purchase in that case. Ownership rights indicate that the property is registered and you will own the land.

Fee Simple is another term you should know. Foreigners have the same rights to this type of ownership as residents do. Fee simple gives the owner the right to own, sell or lease the property. If for some reason this right is obstructed you have legal recourse. Fee Simple titles give you the most legal rights to use and enjoy your property any way you like.

When you find a property you like you will sign an Option to buy with the seller and deposit funds into an escrow account. The Notary Public or your attorney will then perform a title search and if the property is free and clear you can then close the deal. The deed will be transferred to you and you register your ownership with the Public Registry.

Of course, there are transfer taxes and other charges when buying property in Costa Rica. 1% of the purchase price goes for the stamps at the Public Registry and the government charges 1.5% of the purchase price. There will be a cost if you want the property surveyed and you will also pay to register the mortgage.

Buying Property in Belize

Buying property in Belize can be a very good decision.  English is the official language, both spoken and written, so there is no danger of misunderstanding the contracts you’ll have to sign when you purchase a home in this Caribbean paradise. Located just south of Mexico, Belize attractions include a pristine rain forest, Mayan ruins and the beautiful Belize Barrier Reef.

It can also be quite a different experience than buying property anywhere else! There are no restrictions on who buys property in Belize unless you intend to buy an island. That requires approval from the Ministry of Natural Resources, which is just a formality and always granted. However, finding the right property is something like finding your way through a maze—real estate agents in Belize are not licensed and the friendly entrepreneur who takes you fishing on his boat today may be trying to sell you a house next week!

As you can see, you will need a lawyer if you intend to buy property in Belize. Attorneys are respected pillars of the community and trusted advisors. They are honest, forthright and will make sure that your business affairs run smoothly. Because they are familiar with Belize, they can also be helpful in pointing out advantages and pitfalls of certain properties. You may, for instance, fall in love with a property and be ready to buy it but your attorney may be the only one who tells you that it is always flooded in the rainy season! Your real estate agent is under no obligation to point out such things.

Belize’s property values have remained strong and are a good value for your dollar. There is no capital gains tax and no inheritance taxes. Land can be as little as $100 per acre but surveying costs might exceed the price of the land. Good farming land is $250-2000 per acre. Home prices range from $15,000 for a simple home in a village to $500,000 for a luxury house on the beach in San Pedro. Newer homes sell from $30-$80 sq ft depending on location. You can get a nice beachfront lot on Ambergris Caye or a small residence in Corozal or Cayo for about $50k.

Fees run about 12-25% of the purchase price. There is a land title transfer fee, sometimes referred to as a stamp tax. Attorney fees are about 2% of the price; property taxes are paid in advance and are about 1% of market value.

Once you decide to buy you’ll sign an Agreement for Sale or Contract for Deed and the seller keeps the title till it’s all paid.  10% down and 10 years to pay is typical with 10% interest. Owners generally do the financing and cash gets you a lower price. It’s not easy for non-resident to get a mortgage in Belize so be sure to have financing arranged before you start shopping for property.