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. Buying property in Barbados has a fairly set structure and follows a specific set of steps that ensure the sale is carried out legally and in good faith. Let’s take a look at the different steps and how they are completed.
Sale 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 representation, signed in duplicate by the buyer and delivered to the seller’s representative together with the deposit. The entire package is then returned to the buyer’s legal representative and this step is concluded.
Title Investigation – Like any other area, Barbados home sales must obtain title before the transaction is completed. 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, encumbrances, 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 representative prepares the means of transfer (usually 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 unbuilt land and 2.5% on the amount by which the greater of the consideration paid or the value of the land exceeds $125,000. .
Retaining Legal Advice and Advice – This is a mandatory step in purchasing property in Barbados. There are several aspects of the buying or selling process that can only be handled by a proper legal representative. There are several areas of concern for first-time buyers of Barbados, such as the lack of title insurance, the large amount of unregistered property, and some particular transfer 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 solicitor 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 that is paid on the attorney’s fees.
Financing – Financing is a different story in Barbados as financing within the country is only available to citizens of Barbados. If you are a foreigner thinking of buying property in Barbados, then financing must be secured outside 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 you make a purchase. When considering a home in Barbados, it is essential that you obtain legal representation and tax advice well before you start signing any documents.
