BUYING GUIDE

NOTES TO BUYERS

Once a property is identified, any party interested in purchasing, will sign an ‘Offer to Purchase’ agreement.  The Offer to Purchase outlines the terms of the offer and is the basis on which the seller’s attorney prepares the Sales Agreement.

Should the seller accept the offer, a minimum deposit of 10% of the purchase price is required at the signing of the Sales Agreement.

There are many different circumstances under which a land transfer may be taking place, and the procedure will differ.  For this reason, it is wise to have a solicitor have conduct of the legal aspects of the transfer.  They will review the Sales Agreement and conclude the sale transaction.

There is no agreement between the purchaser and the vendor until the Agreement for Sale is signed and deposit paid.

Having completed the Sales Agreement, the process to transfer the property title and payment of transfer taxes and stamp duty is undertaken by the attorneys representing both parties.

The costs of purchasing a property include:

• 1% Assurance Fund
• 5% Judicial Fee
• 3% Solicitors Fee
• 4% Stamp Duty
• VAT on Solicitors Fee
• If land is transferred to a foreigner, an additional 10%

[Depending on the size of the property being bought and the purchase, the Buyer would also have to obtain a license from the government.  A license is required for (a) over one acre of land for residential use and (b) over three acres for business purposes.

• Placement of Caveat $350.00 + VAT

The balance of purchase price is due at the closing of the sale. For purchases financed by a mortgage from a financial institution, the time to complete the sale is approximately 3 months from the date of signing the agreement. For a cash purchase, the buyer and seller determine the time period.

N.B       At completion of transfer:

1. The purchaser is expected to pay over the purchase price, all of the purchaser’s fees and, where applicable alien (foreigners) landholding tax;
2. The Memorandum of Transfer (MOT) will be executed by vendor at about the same time as payment of ,purchase price less all vendor’s fee, agent fees and other costs;

• The solicitors deals with any financier, encumbrances etc.

Once a property is identified, any party interested in purchasing, will sign an ‘Offer to Purchase’ agreement.  The Offer to Purchase outlines the terms of the offer and is the basis on which the seller’s attorney prepares the Sales Agreement.  Should the seller accept the offer, a minimum deposit of 10% of the purchase price is required at the signing of the Sales Agreement.

Having completed the Sales Agreement, the process to transfer the property title and payment of transfer taxes and stamp duty is undertaken by the attorneys representing both parties.

The costs of purchasing a property include:

• 1% Assurance Fund
• 5% Judicial Fee
• 3% Solicitors Fee
• 4% Stamp Duty
• VAT on Solicitors Fee
• Placement of Caveat $350.00 + VAT

(If the buyer is an Foreigner and wishes to purchase more than an one acre for residential purposes or more than three acres for trade and business, then the buyer

• Will be required to apply to an Aliens Land Holding License
• Pay an application fee of EC$150.00 plus any stamp duty required.

If the buyer wishes to purchase less than one acre for residential purposes or less than three acres for trade or business, then he will NOT be required to apply for an alien land holding license but will still have to pay the additional fee of 10%.

The balance of purchase price is due at the closing of the sale. For purchases financed by a mortgage from a financial institution, the time to complete the sale is approximately 3 months from the date of signing the agreement. For a cash purchase, the buyer and seller determine the time period.

N.B       At completion of transfer:

1. The purchaser is expected to pay over the purchase price, all of the purchaser’s fees and, where applicable alien (foreigners) landholding tax;
2. The Memorandum of Transfer (MOT) will be executed by vendor at about the same time as payment of ,purchase price less all vendor’s fee, agent fees and other costs;
3. The solicitors deals with any financier, encumbrances etc.