The idea of buying property in a foreign country like Belize can be very daunting and confusing.
The first step is to find a trusted real estate agent in Belize. It is best to ask for testimonials from other clients or references to ensure that the agent is competent and trustworthy. Then, after the agent has helped you find a property you’d like to buy, the next step is to present the seller with a formal OFFER TO PURCHASE.
This important document must be provided by your Belize real estate agent and must include the following:
* Buyer’s name and address
* Name and address of the seller
* The LEGAL DESCRIPTION of the Property, eg. Lot #56 blah blah blah.
* The purchase price offered.
* Any other terms of the offer. All the terms of the sale will have been written into the offer by the real estate agent, such as deadlines for closing, etc.
* Buyer must sign the Offer to Purchase and provide a deposit.
Your Belize real estate agent will present the formal offer to purchase to the seller. The seller can either accept the offer or respond with a counter offer. If the seller accepts, he will sign and execute the offer.
At this point, you should generally retain the services of a Belize attorney to oversee compliance with the deal.
The attorney’s job is primarily to ensure that the title to the property is “good and marketable.” He must make all necessary searches of the Title or Deed to discover any hidden liens that may be present in the Title or Deed. Likewise, she must review the “surveying plan” to verify the location and dimensions of the property. Attorney fees for real estate transactions in Belize generally range from one to three percent.
Check the yellow pages or ask your Belize real estate agent for a list of reputable attorneys if you need recommendations.
A major point of confusion for many foreigners is the fact that there are three legal types of land title records currently in use in Belize.
* There is the Minister’s Fiat Grant, or “Transfer System”, which provides buyers with a “Deed of Transfer”.
* There is the Certificate of Title system (also known as the Torrens system) which provides buyers with the old “Certificate of Title”.
* There is the new Registered Land Act system, which provides the buyer with a new style of “Certificate of Title” that adheres to the recently passed Registered Land Act.
Different parts of the country use different systems, but the Government of Belize has been converting all properties in the country to the new Registered Land Act system, area by area. All three systems provide the owner with legal and indisputable proof of ownership of their real estate in Belize,
Once the attorney demonstrates that the property is “Free, Clear and Negotiable”, the buyer would transfer the funds for the purchase to an escrow account in Belize. This is usually done via direct bank transfer from your bank in the US or Canada.
The final steps in the purchase process include payment of stamp duty, also known as the 5 percent land transfer tax. Stamp duty is payable on any Belize real estate transaction valued at more than $20,000 Belize dollars. Stamp duty is generally paid by the buyer and will be stipulated in the Offer to Purchase.
Funds for the purchase are then transferred to the seller. Land transfer documents are signed by the seller and then filed or “presented” at the Land Registry department in the capital city of Belmopan. Once the documents are submitted to the Land Registry Department, the land becomes the property of the buyer.
And that’s it, you can now enjoy your newly purchased Belize real estate!