Buying Real estate In Belize

What to expect when buying real estate in Belize

You have to know what to expect when buying real estate in Belize! Belize Land Properties Ltd will guide you every step of the way.

Making An Offer to Purchase when buying real estate

You found the right property to purchase? Let’s make the offer to the owner! Let’s negotiate the asking price and once all parties agree to terms and conditions and price the Sales Agreement can be prepared.

When you buy real estate what is needed to prepare a Sales Agreement?

The things required to prepare a Sales Agreement:

1. Copy of Title
2. Copy of Sketch/Survey
3. Copy of Seller’s (seller) Valid passport ID (or Belize Social Security Card)
4. Copy of Seller’s Utility Bill for proof of address
5. Seller’s full contact details
6. Copy of Buyer’s Valid Passport ID
7. Copy of Buyer’s Utility Bill for proof of address
8. Buyer’s full contact details
9. Seller and Buyer will require to fill some forms under “Know Your Client” regulations

Closing Process when buying real estate in Belize

Upon a Sales Agreement is secured and the Buyer has secured an Attorney or a Closing Company the usual Closing time frame takes 30-45 days at maximum unless other terms agreed by all parties.

1. After Execution of the Sales Agreement the Buyer will have 3-5 working days to present proof of wire transfer for the 10% Escrow Deposit
2. Attorney’s usually commence due diligence work after their fee has been received and usually sent in with the Escrow Deposit.
3. Upon confirmation of Escrow Deposit, the Attorney/Escrow Company will conduct a Title Search
4. Title Search usually takes between 7-15 days at maximum
5. Upon confirmation of Title is Free and Clear the attorney will recommend moving to Closing

Closing Fees Involved when buying real estate in Belize

Transfer Fees are assumed by Purchaser:

1. Stamp Duty Tax- is a transfer tax payable to the government of Belize on the transfer value of the purchase. Stamp Duty is for anything over $10,000.00US ($20,000.00BZ). Nationals pay 5% Stamp Duty Tax and Non-nationals pay 8%. Important Note: if Ministry of Natural Resources (Lands Department) may reassess the Transfer Value and the difference of the paid Stamp Duty to the new reassessed value must be paid before the process of preparing new title is completed.
2. Registration Fee for Declared Areas- for properties under a Land Certificate of Title the Registration Fee is $40US ($80.00BZ). Note other form of titles may have different Registration Fee.
3. The time frame from when the transfer is lodged to when title is issued in the new owner’s name it may take between 6-12 months.

Attorney’s Fees

Attorney’s Fee or Closing Company Fees vary from office to office. Below is a guide to assist you in taking in consideration when buying real estate in Belize.

1. Attorney’s charge per usual between 1.5-2% of the Purchase Price but may have a minimum service fee. The attorney’s office will charge the higher of the 2. This fee is for preparation of transfer instruments and lodging of the transfer instruments.
2. Attorney’s will charge for Title Search anywhere between 350-650USD
3. In the event Central Bank Notice Application is required Attorneys may charge between 250-600USD to submit application. Central Bank Notice is required when a sale involves a Resident of Belize and a Non-Resident of Belize. The term “Non-Nationals” refer to a person or entity that is not residing in Belize regardless of the nationality. However, if a sale involves Non-National who is a resident of Belize and a National resident of Belize, the Central Bank Application must be submitted.
4. Escrow Fees- Some attorney’s charge a 1% to 1.5% Escrow Fee and others may not.
5. Attorney’s office will also charge Courier/Delivery Fees

Total Approximate Closing Costs

The total approximate Closing Costs for Nationals is close to 8% and for Non-Nationals closing to 11% of the Purchase Price.

Things to Request for Construction Purposes or service application

Ask the Attorney at Closing to provide you with copy of the documents that were used for closing. The documents will provide proof of purchase and interest in the property. Additionally, the documents may be used for when applying for building permits, services, bank applications, immigration applications, etc. Below is a list of what you should get copies of at Closing:

1. Copy of all executed Transfer Instruments signed by Seller and Buyer
2. Copy of the ID’s attached #1 above
3. Copy of Stamp Duty and Registration Receipts from Lands Department
4. Land Registry Receipt of Instrument (Has a tracking number to track transaction at Lands Department)