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Purchasing a property

Steps to purchasing a property:

Buying a property in Barbados may appear to be time consuming, but with the right information you can make knowledgeable decisions that most suits your needs.  Our sales representatives at H. V. Realty Services are here to guide you through the process; and make the transition smooth and rewarding, we also advise that you consult a local Attorney-at-Law with regards to legal acquisitioning.  If you do not have a local Attorney-at-Law, we can provide recommendations at your request.

Facts That You Should Know:

  • There are no restrictions when purchasing a property in Barbados, by persons that are non-nationals or Barbadian citizens.
  • Non-nations should definitely have all funds documented for the purchase of real estate which were derived from outside Barbados.
  • All financial arrangements such as a loan, mortgage, purchase price and the 10% deposit should be in place prior to entering into a legal purchase agreement for the sale of property.
  • Funds transferred to Barbados must be registered with the central Bank of Barbados.  This process guarantees repatriation of the same amount of funds if and when the property is sold again.
  • Purchasers who are non-residents must obtain permission to purchase property from the Barbados Exchange Control Authority, regardless of whether  they are a Barbadian citizen or not.  This is standard procedure under the Exchange Control Act.
  • Purchasers must obtain the services of a registered local Attorney-at-Law who shall have to search the registry and establish good title to the property before the legal sales transaction is complete.
  • Property passes had to hand by conveyance of title, evidenced by the recording of the deeds and certified survey plans at the registry of title.
  • Attorney’s fees are approximately 2% - 2.5% of the sale price.  Attorneys’ fees are subject to 17.5% VAT.  Both buyer and seller are responsible for their own attorneys’ fees.
  • The real estate agent’s commission fee is normally 5% of the sale price.  Real estate agents fee are subject to 17.5% VAT.
  • Sales commissions and survey costs are paid by the vendor.
  • In some instances, international buyers purchase a property through a company which has been incorporated and registered to do business in Barbados.  This initiative may help reduce some cost and simplify the process when selling the property.

Town & Country Planning Regulations:

  •  If the purchaser is buying a parcel of land, the vendor will require a Certificate of Compliance from the Town and Country Planning Office (T.C.P.O), which certifies that the roads and services have been provided in accordance with planning guidelines.  It is illegal for a vendor to sell a property without the Certificate of Compliance.
  • If the purchaser is buying a property which is already built and wishes to improve by extending the property on the land, planning permission is required from TCPO.  The planning permission is granted in accordance with a set of guidelines established by acts of Parliament and statutory instruments.  In addition, TCPO would be guided by the zoning of the land and environmental issues.
  • In all cases, application is made to the TCPO and permission is usually granted within a period of two to six months.

For more information, please contact one of H. V. Realty Services representatives.