Buying Turks and Caicos
It is very easy to buy property in the Turks and Caicos Islands.
TheTorrensLand Registry system sets out that title to land in here is
guaranteedby the Crown.
There are
no restrictions on foreign ownership of property.
There are no real estate taxes, although there is a one time only
transfertax called Stamp Duty which rates apply to everyone upon
purchase of the property. See: Stamp Duty to
determine the tax bracket
that applies to your considered purchase.
Before
viewing houses or condos, determine your budget taking
into consideration the stamp duty of perhaps 9.75% of the sale price.
See: Stamp Duty
The cost for legal fees are about 1% of the cost of the sale price, so
be prepared to add between 7% to 11% to the advertised sale price
of the properties viewed.
Many people
who buy in Turks and Caicos are from outside of this
country and find that it is more efficient to mortgage property in their
home countryand bring cash to Turks and Caicos. Mortgages are available
here in the Islands but often rates are 3 points higher than prime in
Canada or USA. Banks here will need to appraise the home or condo
being purchased to make sure it is valued correctly and the applicant
for the mortgage will still need to qualify.
Because
Turks and Caicos is a tax haven and banks here are obedient
to secrecy laws, there is a discontinuity between banks here and abroad. Therefore one
may not apply for a mortgage abroad upon a purchase in
this country expecting mortage interest to be deductible in their home
country.
Once a
house is chosen, be diligent about details of construction and
repair. Often, it is advisable to make an offer that is conditional on having
an inspection done by a qualified builder who will tell you impartially work
that may need to be done or that has been done incompletely. Do you
due dilligence as well about location and ask your realtor to show you comparible sales
so that you understand the asking price or offering price
is fair market value.
Consider
that if you are buying a condo or townhouse, duplex, apartment
or separate villas, there may be a monthly fee called Strata Fee. Strata
means a group of owners of a complex. All owners will be contributing to
the maintenance of facilities, as they each own their unit but they also collectively own
the common property, and for that they pay their share of
the maintenance costs of common facilities and that is Strata Fee.
Preliminary
Agreements have to be signed when you have found the
home of your choice (see: Legal
Procedures). Once you and the seller
have come to agreement on all terms and conditions, your lawyer and
theirs will arrange a legal contract along with a deposit that will become
firm and binding. Next, the transfer of money and ownership will take
place, after which title is registered with Registrar's Office in Grand Turk
and the title to your property is guaranteed.
Remember
that along with closing costs, you will need to arrange
homeowners' insuance which provides financial protection against
accidents and disasters. Hurricane insurance should be part of the package.
Ask Peter to suggest a number of good
attorneys, builders, inspectors
and insurance companies that are available on the Islands. It is part of
his job as your realtor to make sure that you are informed and educated
in every area of your purchase of a home here in Turks and Caicos.
Realtorsare free to the purchaser but it is their job to know the market
and inform and advise in a way that helps you make the choice that best
meets your criteria.