Buying property in Barbados can be an exciting investment, whether you are purchasing a home, vacation property, investment property or land for development.
But before signing an Agreement for Sale or paying a deposit, it is important to understand exactly what you are buying and whether the seller can give you good title.
Have the Agreement for Sale reviewed first
The Agreement for Sale sets out the terms of your purchase, including the price, deposit, completion date and the obligations of both buyer and seller.
It should also deal with important issues such as existing mortgages or other encumbrances, vacant possession, fixtures and fittings, default and what happens to the deposit if the transaction does not complete.
Do not assume that a standard agreement protects your particular interests. Have your attorney review it before you sign.
Make sure the seller has good title
Your attorney should investigate the property’s title and determine whether there are mortgages, judgments, restrictions, easements or other matters affecting the property.
This is particularly important where the property has been inherited, is owned by several family members, or has been held for many years.
The physical property should also correspond with its legal description and survey plan. Boundary problems, encroachments or discrepancies can create significant problems after purchase.
Check the taxes and costs
The purchase price is not necessarily the total cost of acquiring property in Barbados. Depending on the transaction, there may be registration fees, legal fees, valuation and survey costs, and financing expenses. Outstanding land tax can also delay completion. The appropriate clearances should therefore be obtained as part of the conveyancing process.
Buying from an estate or from overseas requires additional care
If the property belongs to an estate, it is important to establish that the executor or administrator has the legal authority to sell and that the necessary probate or administration steps have been completed.
For Barbadians living overseas or foreign purchasers, additional planning may be required to deal with signing documents, financing, exchange control, tax considerations and completion when the purchaser is not physically in Barbados.
You should also consider how the property will be owned before completing the purchase. Individual ownership, joint ownership and corporate ownership can have different legal and succession consequences.
Do your due diligence before you commit
A property may look perfect, but problems with title, boundaries, encumbrances, estate administration or contractual terms can become expensive to resolve after a deposit has been paid. The safest time to obtain legal advice is before you sign.
At Regina Lex Attorneys-at-Law, we assist clients in Barbados and overseas with property purchases, sales, title investigations, Agreements for Sale, conveyancing, land registration, estate property and property-related disputes.
If you are considering purchasing property in Barbados, we can help you understand the legal and financial implications of the transaction before you commit.
This article is provided for general information only and does not constitute legal advice. Every property transaction is different, and purchasers should obtain independent legal advice concerning their particular circumstances.
