The reality of buying property in Barbados is simple: you need legal representation. Buying property anywhere, local or otherwise, it’s always smart to get legal advice. Buying property in Barbados has a fairly defined structure and follows a specific set of steps that ensure that the sale is made legally and in good faith. Let’s take a look at the different steps and how they are completed.
Agreement For Sale – This is the first step that occurs after negotiations are complete. This agreement is made by the seller’s attorney, signed in duplicate by the buyer and submitted to the seller’s representative along with the guarantee. The entire package is then sent back to the buyer’s legal representative and this step is complete.
Title Investigation – Just like any other area, home sales in Barbados must remove the title before the transaction is complete. These searches are usually carried out by the buyer’s attorney to ensure that the seller has clear and legal title to the property and that there are no confiscations, liens, or valuations of the property that could affect the smooth transfer of ownership.
Sale and Purchase Settlement – Once the title is completed, the seller’s representative then prepares the means of conveyance (usually a mortgage) as well as the previous rights.
Closing Costs – There are various closing costs involved in selling and buying a Barbados home. Seller is responsible for stamp duty and property tax. The taxes are 1% on the sale fee and 2.5% on land without buildings and 2.5% on the amount greater than the fee paid or the value of the land exceeds $125,000.
Maintaining Legal Advice & Board – This is a mandatory step in buying property in Barbados. There are some aspects of the buying or selling process that only the right legal representative can handle. There are several areas of concern to first-time Barbados buyers such as the absence of property insurance, the large number of unregistered properties, and certain carriage laws make legal assistance a necessity.
Legal Fees – Legal fees are largely dependent on the value of the home purchased, as defined by the Barbados Law Profession Rules, 1997. In addition, the minimum scale fee may be adjusted by an attorney to reflect their years of experience and complexity. of the transaction. There is also a 15% value added tax paid at attorney’s fees.
Financing – Financing is a different story in Barbados as domestic financing is only available to citizens of Barbados. If you are a non-national thinking about buying property in Barbados, then funding must be secured overseas. Basically all foreign financing must be abroad or regulated through an overseas institution.
Keep in mind that buying abroad will be very different from buying a house in your own country. There are various processes and laws that apply to real estate and you should be sure that you understand them all before making a purchase. When considering a home in Barbados, it is important that you get legal representation and tax advice long before you start signing papers.