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Guide To Buying Property In Barbados

No restrictions - There are no restrictions for non-nationals to buy property in Barbados. However, permission must first be obtained from the Central Bank of Barbados. This is a simple process which your legal representative will handle on your behalf.

Choose a professional Real Estate Agent - 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.

Appoint an Attorney-at-law - Once you have identified that Barbados property you wish to purchase and you and the seller 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.

Sale Agreement - 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 seller 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.

Searches - From here on, the buyer’s legal representative will conduct a series of searches pertaining to the Barbados 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 to six months.

Line marks - 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.

Conveyance - 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 is exchanged for the balance of the purchase money and the sale is completed.

Other useful Information

Exchange Control Permission - 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 in the event you sell your property at a later date, you will encounter no problems with expatriating the funds. Your legal representative will look after this process on your behalf.

Property tax - 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. We invite you to see our GUIDE TO OWNING PROPERTY IN BARBADOS.

Transfer Tax - There is no Property Transfer Tax or Stamp Duty for persons buying property in Barbados.

Attorney fees - Attorney fees are regulated by the Barbados Legal Profession. They range between 1% and 2.5% of the sale price and are subject to 17.5% VAT.

It is recommended that buyers discuss all aspects of buying property in Barbados, including legal fees and costs with their legal representative.

MORTGAGE & FINANCE INFORMATION

US dollar mortgages - Non-nationals must normally obtain financing from external sources. However, US dollar mortgages are available from the offshore sector of the local banking industry under the following general terms:

. 70% LTV up to US$2.5m
. 50% LTV over US$2.5m
. Terms – Up to 20 years
. Rate – LIBOR plus 2.5% 
. Attorney fees – 1% - 2.5% plus 17.5% VAT

 

 BUYER TRANSACTION COSTS

. Attorney fees: Approximately 1% - 2.5% plus 17.5% VAT
. Proportionate amount of Land Tax bill

 

STANDARD PURCHASE PROCEDURES

. Appoint a professional Real Estate Agent

. Verbal or written offer by buyer

. Verbal or written offer acceptance by seller

. Appoint a Barbados attorney-at-law

. Purchaser signs the Purchase & Sale Agreement and pays a 10% deposit

. Conveyance prepared by seller’s attorney-at-law

. Buyer signs the Conveyance and pays the balance of the purchase price

. Foreign currency brought into Barbados as well as funds borrowed by non-nationals must be registered     

  with the Central Bank of Barbados.

. Completion of sale

 Average transaction period 3 – 6 months

 

Coral Stone Realty is pleased to offer you our services in buying, selling and renting property in Barbados whether it be Barbados residential properties, luxury homes, townhouses, condos, Barbados beachfront and waterfront homes, apartments, villas, hotel resorts, commercial properties or land. 

We invite you to browse through our listings of Barbados Real Estate Sales and Barbados Land For Sale.

We look forward to being of service to you.