Posted on March 16, 2010.
Five things you should know before buying property in Belize Buying a home is always a stressful process and perhaps even more when buying in a foreign country. However, Belize is part of the British Commonwealth with a legal system that shares the same British common law as Canada and the United States. However, there are five basic things that every buyer should know before you begin the process of purchasing their dream property in Belize:
1. A foreigner can own property outright in Belize and has the same rights as a citizen of Belize at the property outright. Since the law of land ownership by foreigners was abolished in 2001 there are no licenses, permits, special permissions or conditions needed for a foreigner to take title to freehold land in Belize.
2. It is always advisable to have legal advice when purchasing property, but you'll often be told otherwise. There are paralegals experienced and trustworthy to be familiar with history as local properties and they can often complete a purchase. However, there may be serious questions about how best to take the title that may affect your closing costs and affect the way you sell your property. Do not take risks, get local qualified legal representation.
3. Title insurance is very popular in the United States and increasingly in Canada, but are not so common in Belize. However, Belize is one of the few countries in Central America which makes the title insurance offers by a major U.S. supplier, Stewart Title. It is important to note that the Belize government guarantees most of the titles of Belize as your local attorney can provide a title opinion which is acquiring property as safe as regards your title in the U.S. and Canada .
4. Closing costs in Belize are very simple. Since there is no tax on capital gains related to the purchase and sale of real estate, the government assesses a stamp duty of 5% on the declared purchase price of the property upon transfer property. However, there is an additional tax of 5% for foreigners and persons who have resided in Belize less than 3 years. It is important to thoroughly discuss and understand your options before finalizing the sale to make sure you take the title of your property in Belize is best suited to your particular situation. closing costs with your lawyer or paralegal should be budgeted at a minimum of $ 500 - $ 1,500.
5. Local funding, although available, is not a recommended action plan. The majority of transactions in foreign property is either in cash or otherwise financed offshore. interest rates in Belize are generally much higher than you will in your home with fixed-term contracts of twelve months and only issued in Belize dollars. At the end of each year the loan is closed and then renewed at current interest rates. A more reasonable alternative may be to borrow from a bank offshore and, as always, professional advice is very important.
Common sense should prevail when considering buying property in a foreign jurisdiction and that should start keeping a counselor who is on your side and not compromising and acting for the seller. Start by following the five factors above and you will go a long way to make this an exciting and joyous.
