St. Lucia Property

business

You may have read my previous article "Time to Buy Property in St Lucia" and decided to purchase your first villa or plot of land in the paradise island of St Lucia. This article will provide you with the knowledge to make the actual buying process as streamlined as possible.

Once you have identified your ideal property in St Lucia and had your offer accepted the first thing you need to do is appoint a lawyer, practising on the island, to handle the legal aspects of your purchase. Your Real Estate Agent may be able to recommend a lawyer however also seek the recommendations of others before making this important decision. The legal fees for a property purchase transaction will usually range from 3% to 5% of the purchase price but it is always worth negotiating this fee. Many lawyers may request 50% of their total fee at the start of the transaction. In addition stamp duty on property is 2% of the total purchase price.

Once appointed the first thing your lawyer should do is to review the Sales & Purchase agreement which you, the purchaser, will be required to sign to kick off the purchase. The agreement will cover the terms and main conditions of the sale i.e. description of the property or land, price, deposit and closing date for the sale. The deposit specified will usually be 10% of the total purchase price. Furthermore the agreement will contain a number of conditions that must be met prior to the transaction being completed, such as the granting of an Alien Landholding License (ALL) to you the purchaser (more about the ALL below.) If in the very unusual situation you were not granted a license then the agreement should clearly specify that your deposit will be returned to you.

Holding Licenses

business

An Alien Land Holding License is required by all non - St Lucian citizens to legally purchase property or land on the island. This license is granted for a specific property or plot of land and does not require renewal. The total fees required in applying for and being issued a license is $6,500 ECD. The overall application process can take between two and three months. Your lawyer will explain the whole application process to you and help you complete some of the more generic parts of the application forms. Before submitting the application your lawyer will also request the following list of items to accompany the submission of the ALL application form:

o One full set of finger prints
o Police Certificate / Record of good character from your usual country of residence
o Four (4) passport sized photos (coloured)
o Bankers' Reference
o Personal Reference
o Certified copy of passport (coloured)

Fingerprinting and the police record are historically the most difficult to obtain in a timely manner and are the first things that should be applied for on return to your usual country of residence. If time permits it would normally be easier to obtain the finger prints in St Lucia before your departure.

Once the ALL has been approved and the official confirmation received your lawyer will request the balance of the purchase funds. Your lawyer will then arrange for the property to be registered in your name at the Land Registry Department. It is only following this registration that the deed of sale can be finalised by your lawyer, signed by you the purchaser and the process brought to a close.

The end to end process, from the time you sign the initial Sales and Purchase agreement, to the signing of the deed of sale could take up to four months. The longest element will be Alien Landholding License application process.

Finally it is worth discussing with your lawyer the merits of forming an Alien Company to purchase your property. By forming an alien company you could reduce your future potential tax liability on any resale. For example if you purchase the property as an individual you would be required to pay a vendor's tax of 10% as a non St Lucian national. On the other hand, if you form an alien company to buy the property you only attract a vendor's tax of ½%. There will however be an additional alien company set-up fee of about $3,500 ECD.

St.Lucia, considered to be more scenic than most other islands of the Caribbean, boasts of rainforests, mountains, waterfall, coves as well as sandy beaches.

. The warm climate that persists throughout the year, and the friendliness of the St.Lucians, combined with the authentic Creole culture found in the food, dance and music, make the island all the more desirable for potential buyers of property in St.Lucia. Imminent appreciation of economy, adds an element of stability to the environment of the island, thus encouraging foreigners interested in owning property in the Caribbean, to invest in properties for sale in the island of St.Lucia.

All non-St.Lucian citizens must have an Alien Land Holding License in order to legally purchase and own property in St.Lucia. This license need not be renewed. The application procedure for the Alien Land Holding License should be carried out under the guidance of an experienced lawyer. The entire process takes about 8 to 12 weeks. The following documents are required to be submitted along with the application for Alien Land Holding License: fingerprints of all ten fingers of the original buyer of the property in St.Lucia, a good character certificate from any police station in the buyer's own country, Bankers' reference, Personal reference, and an authenticated photocopy of the buyer's passport.

After the property to be purchased in St.Lucia has been decided upon, the buyer should then assign a legal practitioner to vary out all legal formalities effectively. The Real Estate Agent may be requested to recommend lawyers for this purpose. The buyer will be expected to pay around 3 to 5% of the price of the property in St.Lucia, as the lawyer's fees. This sum is however, subject to negotiation. One of the main functions of the lawyer is to examine the terms and conditions of the pre-contract deal, before the buyer signs it. The contract constitutes details such as description of the property or land, price, deposit and closing date for the sale. The deposit fee required to reserve the property to be bought in St.Lucia is about 10% of the total price. In case the foreign national buyer of property in St.Lucia fails to acquire an Alien Land Holding License, the lawyer should ensure that the good faith deposit money is returned to him or her. The transaction process in its entirety is likely to take maximum four months.

In the recent past, the island of St.Lucia has experienced a growth of about 11-21% in real estate prices, with the most rapid increase taking place in the northern region of St.Lucia. Waterside apartments, townhouse communities and condominiums comprise the real estate for sale

http://kona.kontera.com/javascript/lib/imgs/grey_loader.gif

in St.Lucia which have the highest demand among foreigners. But since the island is so small, there is no scope for continuous development of sites and properties in St.Lucia. The most popular property locations are the Landings, the Reserve, Allamanda, the Harbor and the Seaside.

The famous Atlantic rally for Cruisers, the St.Lucia Jazz Festivals and the high-quality golf courses contribute greatly towards the popularity of St.Lucia as a tourist location. Those intending to buy property in this island are advised to do so quickly, because of the limited availability of properties for sale in St.Lucia. Of the approximate St.Lucian population of 166,312, 36% are visitors from the US..