Shopping in Barbados
The reality of buying property in Barbados is simple: you will need legal representation. When buying property anywhere, local or otherwise, it’s always smart to get legal advice. The purchase of a property in Barbados has a fairly established structure and follows a specific series of steps that ensure that the sale is carried out legally and in good faith. Let’s take a look at the different steps and how they are completed.
Sales Agreement – This is the first step that occurs after the negotiations have come to an end. This agreement is drawn up by the seller’s legal representative, signed in duplicate by the buyer and delivered to the seller’s representative together with the deposit. The complete package is then returned to the buyer’s legal representative and this step is completed.
Title Investigation – Just like in any other area, home sales in Barbados must obtain title before the transaction is complete. This search is usually done by the buyer’s attorney to ensure that the seller has clear and valid title to the property and that there are no liens, liens, or judgments against the property that could affect the smooth transfer of ownership.
Completion of the purchase and sale: Once the title has been approved, the seller’s representation prepares the means of transmission (generally a mortgage), as well as the previous titles.
Closing Costs – There are a variety of closing costs involved in buying and selling a home in Barbados. Sellers are responsible for stamp duty and property tax. The taxes are respectively 1% of the consideration for the sale and 2.5% in the case of undeveloped land and 2.5% on the amount in which the greater of the consideration paid or value of the land exceeds $125,000. .
Advice Retention and Legal Advice: This is a mandatory step to buy a property in Barbados. There are several aspects of the buying or selling process that can only be dealt with by a proper legal representative. There are several areas of concern for first time Barbados buyers such as the lack of title insurance, the large number of unregistered properties and some particular conveyancing laws that make legal assistance a necessity.
Legal Fees: Legal fees are highly dependent on the value of the home being purchased, as defined by the Barbados Rules of the Legal Profession, 1997. In addition, a lawyer may adjust the minimum fee scale to reflect their years of experience and the complexity of the transaction. There is also a 15% value added tax paid on attorney’s fees.
Financing – Financing is a different story in Barbados, as in-country financing is only available to Barbadian citizens. If you are a foreigner thinking of buying property in Barbados, then the financing must be secured outside of the country. Essentially, all foreign financing must be abroad or arranged through foreign institutions.
Keep in mind that buying abroad will be very different from buying a house in your own country. There are different processes and laws that apply to real estate and you should make sure you understand all of them before making a purchase. When considering a house in Barbados, it is essential that you obtain legal representation and tax advice well before you start signing documents.