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Barbados is the ideal location in the Caribbean to purchase real estate. This is not surprising when one considers its social and economic stability, low crime rate, excellent infrastructure and telecommunications not to mention its beautiful climate, beaches, high standard of living and quality of life.
There are no restrictions for non-nationals to buy property in Barbados but permission must first be obtained from the Central Bank. This is a simple process and is usually a formality which your legal representative will handle on your behalf.
To initiate the process, we recommend you secure the services of a professional real estate agent to see you through the entire process from start to completion of sale.
Once you have identified that Barbados property you wish to purchase and you and the vendor have agreed upon a price, you will need to appoint a Barbados attorney-at-law to represent you. If you do not already have one, your professional real estate agent will be happy to recommend a reputable attorney to advise you and who will look after your best interest.
The seller’s attorney-at-law will then prepare an Agreement for Sale which will be delivered to the buyer’s attorney-at-law who will peruse it. If everything is in order, he will request the purchaser to sign the Agreement and pay a 10% deposit. This Agreement along with the deposit will be delivered back to the seller’s attorney and held in an escrow account until the completion of sale. The vendor will also be required to sign the Agreement for Sale. After this is done, a binding contract will be in place. A copy will then be sent back to the buyer’s attorney.
From here on, the buyer’s legal representative will conduct a series of searches pertaining to the property. This is to ensure the seller provides a clear and valid title and that there are no encumbrances, liens, judgments or other impediments against the property that could affect the transfer of ownership of the Barbados property. The buyer’s attorney will also check and ensure any outstanding utility bills and Property Taxes are paid up by the seller prior to completion of sale. This process normally takes approximately three months.
Prior to completion of sale, the seller or his legal representative will arrange to have the boundary marks of the property pointed out to the buyer according to the certified survey plan for the property.
In Barbados, transfer of property is done by conveyance of title which is evidenced by the recording of title deeds and certified survey plans at the registry of title. The seller’s attorney prepares the instrument known as the Conveyance which along with the title deeds are exchanged for the balance of the purchase money and the sale is completed.
Additional information
It is not necessary for the buyer to be present in Barbados during the sale process. Your attorney will facilitate the process by forwarding all legal documents to you by courier. Likewise, all monies associated with the purchase can be done by wire transfer, if necessary.
If you are a non-national purchasing property in Barbados, you will require Exchange Control Permission from the Central Bank of Barbados. As a foreign investor, foreign currency brought into Barbados must be registered. This protects you so that in the event you sell your property at a later date, you will have no problems with repatriating the funds. Your legal representative will look after this process on your behalf.
As an owner of property in Barbados, you should be aware that an annual property tax is levied on all properties. The assessment is based on the “improved value” of property and the “site value” if it is undeveloped land.
Attorney fees are regulated by the Barbados Legal Profession. They range between 1.5% - 2.0% of the sale price and are subject to 17.5% VAT.
Non-nationals must normally obtain financing from external sources. However, if it is done in Barbados, it must be done through an offshore financial institution.
It is recommended that the buyer discuss all aspects of buying property in Barbados, including legal fees and costs with his/her legal representative.
Coral Stone Realty is pleased to offer you our services in buying, selling and renting property in Barbados whether it be residential properties, luxury homes, townhouses, condos, beachfront properties, oceanfront properties, apartments, villas, hotel resorts or land for either residential or commercial use.
We invite you to browse through our listings of Barbados Property Sales, Barbados Land Sales and Barbados Property Rentals. We look forward to being of service to you.
For further information, please refer to Tips for Buyers. Selling your Barbados property? Please feel free to Add your Free Property Listing.
