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INTERIOR DESIGN

14/06/2016
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SELLING GUIDE

14/06/2016

Selling a property is a significant decision and warrants professional advice. Choose a real estate agent you are comfortable with. Shamar Estates and Properties International is a member of BEAVA (Barbados Estate Agents & Valuers Association). BEAVA lists recognized agents who have met certain qualifications are bound by the duties imposed by its Code of Ethics.

Agency Fees

Typically the fee associated with the sale of a property is 5% of the agreed selling price of the property. This fee may vary slightly from agent to agent but this is the generally accepted fee charged by members of BEAVA Inc. The fee charged for having a property tenanted is generally one month’s rent on a long term rental. It should be noted that the above fees are subject to 17.5% VAT. The fee charged on a short term rental (holiday rental) is generally 17.5% and is subject to 17.5% VAT.

 

You have the option of entering different arrangements with your agent.

Sole Listing Agreement

This agreement is used in cases where only one agent is authorized to offer the property for sale, but the owner may sell directly to a purchaser with no obligation to pay commission to the sole agent.

Exclusive Listing Agreement

This agreement is used in cases where the real estate agent is authorized to sell the property and the vendor must pay the agreed commission to the said agent regardless of whether he sells the property or indeed even gives it away.

In the cases of the Sole or Exclusive arrangement, the agent can sub-list the property with the other agents on the island in order to give the property the widest possible coverage.

Non-exclusive Listing Agreement

This agreement is used in cases where the owner appoints more than one listing agent himself. All of the listing agents must have the same information and listed price.

 

Legal Fees

Vendors must obtain the services of a registered local attorney to complete the sale transaction on your behalf. The real estate agent may not take funds from the purchaser to facilitate a purchase nor may the seller of the property, either one would be illegal. The attorney will search the register and establish the title to the property prior to the completion of sale and complete the documentation to finalise the transaction.

The purchaser’s legal fees for property transfer are legislated by government and range between 1% and 2.5% plus 17.5% VAT. Both buyer and seller are responsible for their own attorney fees.

Legal Fees are legislated as follows:

  1. Up to $25,000 – $750
  2. On the next $75,000 – 2.5%
  3. On the next $100,000 – 1.5%
  4. On the next $300,000 – 1.25%
  5. Thereafter – 1%

VAT of 17.5% is payable on legal fees

Note: The time to complete the purchase of a property varies from property to property but averages between three to six months.

Vendor Expenses

These expenses will be incurred by the vendor as a result of the sale and hence should be taken into consideration.

 

Property Transfer Tax

Improved Property (House & Land)

  • 0% on the first Bds$125,000
  • 0.1% on Bds$125,001 to Bds$350,000
  • 0.65% on Bds$350,001 to Bds$850,000
  • 0.75% on Bds$850,001 and over

Unimproved Land

  • 0.60% on unimproved value of the land

Improved Property (Commercial)

  • 0.65% on every parcel of land which is not a residence

Stamp Duty – 1% of the Purchase Price

Land Tax – This amount will vary depending on the value of the property at the time of the transaction

Land Surveyor’s fee – Approximately BDS$1,500.00

Real Estate Commission – Normally 5% of the Purchase Price (plus 17.5% VAT)

Utility Bills – Clearance of any outstanding utility bills on the property

 

Miscellaneous Out-of-Pocket Expenses – Approximately $300 e.g. landscaping; painting etc

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PURCHASING GUIDE

14/06/2016

Welcome to the place where summer never ends! Whether you reside here or you are an investor from overseas, buying property on the island is a worthwhile venture which is sure to bring you returns in the future.

Note: There are no restrictions to owning property based on residency or citizenship.

Choose your property

The telecommunications, water works and energy sectors of Barbados are well established. These facilities are reliable and accessible from any parish. All parishes are inhabited, but the most densely populated areas of the country are on the north western, western, south of the island and centrally in the parishes of St Thomas and St George. The highway offers easy access to the major shopping and business hubs in less than half hour. Based on your needs, we search assiduously to help you find what you are looking for.

Note There are small shops, mini marts and gas stations in every parish

Mortgages

If you need to secure a mortgage, you should speak to your financial institution before entering a binding agreement and ensure that you have secured your deposit.

Financing is available for non-nationals as well and there are several financial institutions provide flexible and convenient mortgages to individuals and commercial entities. We can point you towards experienced professionals who can assist you in this regard.

Legal Fees

Purchasers must obtain the services of a registered local attorney to complete the sale transaction on your behalf. The real estate agent may not take funds from you to facilitate a purchase nor may the seller of the property, either one would be illegal. The attorney will search the register and establish the title to the property prior to the completion of sale. He or she will also be present to ensure the proper documentation is passed from the vendor and the property conveyed to you.

The purchaser’s legal fees for property transfer are legislated by government and range between 1% and 2.5% plus 17.5% VAT. Both buyer and seller are responsible for their own attorney fees.

Legal Fees are legislated as follows:

1. Up to $25,000 – $750

2. On the next $75,000 – 2.5%

3. On the next $100,000 – 1.5%

4. On the next $300,000 – 1.25%

5. Thereafter – 1%

VAT of 17.5% is payable on legal fees

Note: The time to complete the purchase of a property varies from property to property but averages between three to six months.

Funds from Overseas

Funds brought into the island from overseas must be registered with the Central Bank. You should instruct your attorney or banker to do so with the Exchange Control Division of the Bank. This ensures that your funds are protected as a foreign investor and facilitates repatriation of these funds should you sell your property in the future.

Deposit

A deposit in the amount of 10% is required on signing the sale agreement. This deposit is a binding contract which the seller’s attorney holds. The balance of the sale price must be paid to the seller’s attorney on completion the purchase.

Property Transfer Tax

Buyers do not have to pay Property Transfer Tax for property with existing buildings. A buyer pays Property Transfer Tax of approximately 10% for land purchases.

Annual Property Tax

An annual Property Tax is charged on the property based on an assessment of the improved value, or if undeveloped, on the site value. These taxes are rated as follows:

Improved Property (House & Land)

• 0% on the first Bds$125,000

• 0.1% on Bds$125,001 to Bds$350,000

• 0.65% on Bds$350,001 to Bds$850,000

• 0.75% on Bds$850,001 and over Unimproved Land

• 0.60% on unimproved value of the land Improved Property (Commercial)

• 0.65% on every parcel of land which is not a residence

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