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Five Steps for Securing a Property in Barbados

29th June 2016

Barbados is one of the most beautiful of the Caribbean islands—truly the crème de la crème in many ways, so it’s hardly a surprise that so many are interested in purchasing property on this British Commonwealth island. However, purchasing property in Barbados, for someone who doesn’t live there, can be quite the process. There are two ways to purchase property at this popular destination, as an individual or as a company. Here’s a streamlined explanation of the five steps required for a foreign individual to purchase property in Barbados:

1.   Hire a local lawyer.

You’ll need a Barbadian lawyer to handle much of the paperwork required for the purchase of property in Barbados. Lawyer’s fees vary, but are typically around two percent of the sales price. Your lawyer will be your main contact and source of assistance during the process.

2.   Receive permission to purchase property in Barbados.

Foreigners must make a formal request to purchase property in Barbados, due to the Exchange Control Act. This request must be directed to the Central Bank of Barbados. The request will generally be approved. Your local lawyer is equipped to make this request for you.

3.   Make financial arrangements.

Prior to entering into any binding agreements with a seller, it’s suggested that you have your mortgage and all other financial considerations fully approved and prepared. Your mortgage can cover a majority of the property’s value, but it cannot be predicated on the property being rented, and the funds must come from outside of Barbados.

4.   Sign a Purchase Agreement with the seller.

Once you’ve hired your lawyer, received permission to purchase a property, and made financial arrangements, it’s time to sign the Purchase Agreement with the seller of the property. This also typically requires an initial ten percent deposit, which will be kept in escrow.

5.   Sign the conveyance of title.

After the Purchase Agreement has been signed by both yourself and the seller, you will sign the conveyance and pay any remaining funds as agreed upon. The sale is completed when the seller signs the conveyance as well.

During the entire process, your lawyer will be taking care of a number of other necessary tasks for you, including checking the Purchase Agreement, researches the property to ensure that it is free of any encumbrances or other issues that might preclude sale, and, if necessary, register any funds that you’ve brought from overseas.

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