The reality of buying property in Barbados is simple: you will need legal representation. When buying property anywhere, local or otherwise, it is always smart to get legal advice. Buying a property in Barbados has a fairly established structure and follows a specific series of steps to 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 legal representation of the seller, signed in duplicate by the buyer and delivered to the seller’s representative together with the deposit. The complete package is then sent back to the buyer’s legal representative and this step is completed.
Title Investigation – As in any other area, Barbados home sales must settle the title before the transaction is completed. This search is generally performed by the buyer’s attorney to ensure that the seller has clear and valid title to the property and that there are no liens, bonds, or lawsuits against the property that could affect the smooth transfer of the property.
Finalization of the sale and purchase: once the title has been authorized, 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. Taxes are respectively 1% of the consideration for the sale and 2.5% in the case of land without buildings and 2.5% on the amount by which the greater of the consideration paid or the value of the land exceeds the $ 125,000.
Withholding Legal Advice and Advice – This is a required step in purchasing property in Barbados. There are various aspects of the buying or selling process that can only be dealt with by an appropriate legal representative. There are several areas of concern for Barbados first-time buyers, such as the absence of title insurance, the large number of unregistered properties, and some particular trespass laws 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. Additionally, an attorney may adjust the minimum scale fee to reflect their years of experience and the complexity of the transaction. There is also a 15% value added tax that is 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 financing must be secured outside the country. Basically, all foreign financing must be done abroad or managed through foreign institutions.
Keep in mind that buying abroad will be quite different from buying a home in your own country. There are different processes and laws that apply to real estate, and you need to make sure you understand all of them before launching into a purchase. When considering a home in Barbados, it is essential that you obtain legal representation and tax advice well before you start signing documents.
