Island Life

Buying Property in Belize

The process of buying property in San Pedro Belize can be fun, profitable and a great experience provided your broker takes the necessary steps to ensure that your transaction goes smoothly. Since the official language is English, contracts are easy to understand and this makes the process more comfortable. As a buyers agent we will look after your interest and make sure your request are fulfilled and accomplish your investment goals.

If you are considering financing contact me directly. Our relationship does not end after the sale. We maintain friendships with everyone we do business with and would like to introduce you to the community.

Lots of folks dream about living in Belize. Many have visited the country, and others are falling in love with it from afar. Owning property on Ambergris Caye is a great investment and the property taxes are very affordable. Most properties are taxed at 1.5% of the assessed value. Assessments are usually at 10-30% of the market value.

When it’s time for a life style change and you want to purchase real estate, doing business in a country, like Belize is easy, because English is it’s official language, the contracts you sign are in English, and you will be subject to laws you can understand. The British common laws pertain to land, property and business here in Belize.

As for property appreciation, property values here have been steady and strong, increasing during the last 20 years. Belize has no capital gains tax, no inheritance taxes, and a fixed currency exchange rate which is 2 Belize dollars to 1 US dollar. Belize has a stable economy which is attached to U.S. currency.

Non-Belizean owning property: Any one can buy and own property in Belize. A non-Belizean has the same rights as a Belizean to own land or a business. Their are no special permits to own real estate.

Buying property in Belize is fairly easy. It normally takes 30-90 days to complete the transaction. You can get owner financing, at about 10% interest. The rate is negotiable. We can not submit an offer to any property without a deposit. Most real estate transactions are consummated in US dollars. You do not have to be in Belize to buy or sell property.

The first step is to summit an offer. Once a offer form has been written and money has been put into escrow the offer form is legally binding to both buyer and seller. There is always a proper due diligence period on the form for the buyer. Invest In Belize will always be their to see you through the buying or selling process of your real estate and will keep you informed of all progress.

Once the seller has accepted the offer, the purchaser will then retain a local attorney. You do not need a US attorney for this. We can recommend an experienced Belizean law firm to represent your interests if needed. The laws for Belize are different than US law. Once satisfactory title research is completed, a recordable Agreement For Sale, or original title transfer instrument will then be drawn up based on the particulars of the original purchase offer.

The balance of the monies payable for either the down payment or the full purchase price will be due for deposit to the escrow account at the time specified on the purchase offer or Agreement for Sale.

The transfer documents will then be executed and delivered to the purchaser’s lawyer or a paralegal for review. The lawyer or a paralegal will then send us copies and notify us that the documents are in order and will instruct us to release the seller’s escrowed funds.

The executed documents will subsequently be processed at the Lands Registry and an original title or certified copy of an Agreement for Sale will then be presented to the new owner in due course. You do not need to be in Belize to buy or sell property. The documents are Fed Ex’ed  to the absent party and executed in front of a notary. Purchase offers can be completed by facsimile, which is legally binding in Belize.

Closing cost; The stamp tax rate is calculated as follows: 5% Transfer tax.  On an outright purchase, legal fees for title research and title transfer typically run up to 2% of the purchase price. Legal fees for drafting and recording an Agreement For Sale and Caution run between $US 300-750. It is customary that the purchaser pays for all closing costs under Belize transactions.

Stamp duty – 5% ( government tax )

Bank approval – US$50 ( government tax )

Registration fee – US$15 ( government tax )

New title fee – BZ$15 ( government tax )

Inspection of the record – US$50

Courier fee – US$50 per trip

Bank charges for wiring – US$20

Sales tax – 10% on legal fees ( government tax ).

Some of the prices above could vary.

Clear title: You can ensure that you have clear title by having your legal representative, who can be a lawyer or a paralegal , do a “Title Search” and issue a title opinion. The title is researched in the Lands Registry, and in the Companies Registry if the land is held under a company. Liens, judgments and encumbrances are valid only if properly lodged. A title opinion for land which is not in the new registration section, such as conveyed land, takes a little longer as an abstract of title must first be prepared that goes back no less than 30 years. The statute of limitations on land claims is 30 years. An opinion of ‘good and clear title’ will be issued once the attorney has satisfactorily examined the abstract in fine detail. We play our part by ensuring that any deposits paid do not pass beyond the Escrow stage until all paperwork is in order. This includes ensuring that the title for the property has been thoroughly researched and declared free and clear of all liens, judgments and encumbrances.