The Little-known Laws and Fees of Real Estate in Barbados

Barbados real estate is a popular choice for many people who want to buy property on a beautiful island. There are things to know about buying in Barbados because the laws are different than some of the other island real estate markets. Here we will look at some of the specific rules and regulations about buying houses in Barbados.

The Context

Barbados is an island that is 21 miles long by about 13 miles across so it is very easy to go around the whole island in a short amount of time. Many people recommend visiting the island of Barbados before actually purchasing real estate there so that you can decide where you want to buy the real estate. Furthermore, you want to be sure that you can see the property you are considering buying in its current state. A picture from three years ago will give you an unfair impression if there has been damage done since then that you would not know about if you could not visit.

Limitations for Foreigners

When you are a foreigner trying to buy land in Barbados, you will need to hire a lawyer to help you. You will also need to get permission from the Central Bank of Barbados before you can legally buy real estate there.
The lawyer will help you once you have found the property you want to buy. The person who is selling your desired land will give you an agreement of sale and the lawyer will take about 10% of your deposit for the land. Assuming you are a foreigner, the lawyer will also serve as the liaison with the Central Bank of Barbados. The lawyer is important because they can do the title search for your property and make sure you are buying it from someone who actually owns it.

There are various other things that must be sorted out. If there is a lien or charge on the property it has to be removed before the ownership of the property can be transferred to you. If taxes are owed on the land, your lawyer will figure this out so that the land does not get taken from you due to that. Furthermore, he or she can make sure that the water bill has been paid and that electricity can run to the house.

Timeline

There are various amounts of time it can take to own your real estate in Barbados. If you decide to use a mortgage to fund your purchase, then it can take as long as eight months to complete. The process of owning your land can happen is as little as three months if you use cash.

Associated Fees

Depending on who you are working with and the property you are buying there will be different fees involved. Some of the most basic ones are the fees for the lawyer. In Barbados this generally means you give 1% for the first $25,000 dollars and then 5% for the total price of the land. Again, this can be different depending on the lawyer and the people you are working with.

If you are using a mortgage there will also be a lender’s fee that goes to conducting the title searches. If you are obtaining a mortgage from a Barbados bank, you will find yourself paying a higher interest rate than you would in some other countries or than if you were a local.

As you can see, buying real estate in Barbados can be a profitable and wonderful decision. As long as you take the time to assess the associated fees and are sure that you can afford it, you could find yourself with a home in an island paradise. Finding a lawyer you trust and can communicate easily with is a key factor in this process as they are so critical for buying real estate in Barbados.

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