| The
excitement of purchasing your home in paradise! The purchase of a
home whether a primary residence, investment property, or a vacation home
is usually one of the defining moments of a lifetime. Homeownership brings
with it feelings of comfort, stability, excitement, as well the opportunity
for substantial financial growth. When considering taking the emotional
and financial leap that is homeownership it’s important to understand some
of the basics of the process and potential obstacles to avoid.
Owning Property
Buying a piece
of real estate is different from other types of purchases because instead
of purchasing an actual object like a car or a boat what you are
really acquiring is the title to a property, the right to exclusively own,
occupy and use a particular space. There are various types of rights
that a purchaser can acquire and each Caribbean nation has its own laws
governing these rights.
Many Caribbean
islands also have laws that govern what types of rights are transferable
to foreign purchasers. To help sort through these technical title matters,
potential purchaser should retain a local attorney/solicitor. A qualified
attorney/solicitor should provide guidance in regards to the current status
of the title, what parties have rights to that particular property, and
support with the transaction details like drafting purchase and sale agreements
and assisting with the transfer of the rights to you.
Third Party
Escrow
Another important
issue to address when acquiring real estate is how to transfer funds safely
and efficiently. Most real estate transactions involve large sums
of money paid in multiple deposits over the course of several months. Most
prudent sellers want potential buyers to make deposits to show their level
of seriousness before the title is transferred. However, equally prudent
purchasers are not comfortable giving deposits directly to a seller or
even a seller’s real estate agent, as there is limited protection or means
of recourse should a dispute over the property or funds arise.
For that reason
an independent third party is needed. An independent third party, also
known as an escrow agent, holds funds on behalf of a potential buyer and
disburses them to a seller once the terms in a pre-signed agreement have
been met. Utilizing and escrow service helps minimize the risks associated
with funds being transferred to a seller before all of a transaction’s
details are finalized.
Buying real
estate in the Caribbean is an exciting opportunity and if handled appropriately,
it can be a rewarding and enjoyable experience.
Principles
To Help Buyers Avoid Risk
1. Determine
if the seller has legal ownership of the property and if it can be transferred
legally
2. Hire
an attorney/solicitor to search the ownership status back to the sovereign
3. Have
your legal counsel review the purchase/sell agreement, which usually determines
the transaction’s terms and conditions
4. Arrange
for an escrow company or attorney/solicitor to handle the escrow of funds
5. Utilize
your counsel to assist you with filing appropriate land holding licenses
and transfer documents
6. Obtain
a property ownership guaranty from a title guaranty company to protect
against recording errors, liens, encroachments, taxes, fraud, misrepresentation
and other ownership issues
7. If
the property is a condominium, examine the documents creating the condominium
covenants, conditions, and restrictions |
|
| J. Brad DeLoach is General
Manager of Stewart Title Eastern Caribbean. He can be contacted at his
Office: 264-497-0800 Mobile: 264-476-5543 US: 908-320-0338 or by email
at: bdeloach@stewartcarib.com
- Stewart International provides title insurance and related information
services required for settlement by the real estate and mortgage industries
through more than 7,800 policy-issuing offices and agencies in the United
States and international markets. Stewart also provides post-closing lender
services, automated county clerk land records, property ownership mapping,
geographic information systems, property information reports, flood certificates,
document preparation, background checks and expertise in tax-deferred exchanges. |
Stewart
Title Eastern Caribbean, Ltd.
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