Lawyer of the seller drafts the sale agreement
Agency: Lawyer
The lawyer of the seller has initiated the process. A sale/purchase agreement is drafted by the seller’s lawyers. Seller photocopies all title documents and contacts the buyer’s lawyer, so he can verify if everything in the agreement matches the documents. After the revision the parties will agree on a closing date for the transaction. Then the buyer and seller lawyers settle the contract. Although, drafting the contract can be accomplished in a couple of days, the process takes longer since the contract must go out to the buyer and then for it to come back by courier. The purchaser needs to meet with their attorney to confirm the document and how it will be purchased.
Time and cost: 10 days, BBD 400 (Cost for drafting agreements for the sale and purchase of land is under the Legal Profession Remuneration for Non-Contentious Business Rules 1997, Section 7.1
Section 7.1 provides:
- Vendor
- For building estates $250
- Other agreements $400
- Purchaser
- For building estates $300
- Other agreements $600
Sale/Purchase agreements fall under the ‘other’ category.)
The lawyer of the buyer investigates the Title
Agency: Land Registry
All the original documents in the seller possession, are also found at the land registry in copies. Every transaction over the past 20 years is processed through the land registry. The land registry must record the conveyance within 3 months when the transaction is completed. With the documentation received, the lawyer of the buyer investigates the title and checks that all documents he has received are valid and that they match what is recorded in the land registry. The lawyer conducts a search at the land registry to make sure all requirements are met, and no debts are attached to the property.
Under the Property Act, the title search should go back 20 years. If for any reason, the buyer attorney needs to go beyond 20 years he would pay an additional $5 for searching through the books.
Time and cost: 2 days, BBD 6 (No fee if conducted by a lawyer. For all others it is 10BBD. The Land Registry charges 3 BBD per copy of past transactions on the property. Two copies are obtained.)
Conveyance is prepared and approved by the parties
Agency: Lawyer
The seller’s lawyer prepares the draft conveyance (document that transfers the ownership). The seller’s lawyer sends the draft conveyance to the buyer’s lawyer who approves it and sends it back to the seller’s lawyer who engrosses it and sends it back for the buyer’s signature. The buyer signs and returns it to seller lawyer for his signature. The buyer’s lawyer receives the conveyance signed by both parties plus the original title documents and in return the buyer pays the purchasing price.
Time and cost: 14 days, BD 18,691.69 (The Legal Profession Act Cap. 370A Statutory Instruments Supplement No. 48 Supplement to Official Gazette No. 82 dated 9th of October, 1997. Article 27 provides – For preparing and completing conveyance of unregistered land (excluding conveyances under the Tenantries Freehold Purchase Act)
- Vendor:
- Up to $25 000 is $750
- On the next $75 000 is 2%
- On the next $100 000 is 1.5%
- On the next $300 000 is 1.25%
- Thereafter 1% Registered land two thirds of the scale above
- Purchaser:
- Up to $25 000 = $1 000
- On the next $75 000 = 2.5%
- On the next $100 000 = 1.5%
- On the next $300 000 = 1.25%
- Thereafter 1% Registered land one third of the scale above)
Obtain Land Tax Certificate
Agency: Barbados Revenue Authority
The Land Tax Certificate shows that all land taxes are paid. It is issued by the Barbados Revenue Authority. This certificate doesn’t need to be stamped.
Time and cost: 2 days, no charge
Stamp Notice of the Transfer of Ownership at the Land Tax Department
Agency: Land Tax Department
Notice of transfer of ownership is issued by the land registry (downloadable from the Land Registry’s website) and it should be stamped by the Land Tax Department. The objective of this form is to give information to the Land Tax Department as to what price the land was sold for, the location of the land, its area, the parties to the transaction, the day the property was sold, and whether property is residential or commercial.
To get the Transfer of Ownership form stamped a valid Land Tax Certificate showing that all taxes have been paid must be produced.
Time and cost: 1 day, no charge
Stamp Section 12A Form
Agency: Inland Revenue Department
Section 12A form is issued by the Inland Revenue Department (downloadable online). It should be stamped by the Inland Revenue Department and tells whether any real estate commission was payable and if so to whom.
Time and cost: 1 day, no charge
Record the conveyance (register an instrument) at the Land Registry and pay transfer fees and stamp duties
Agency: Land Registry
The buyer must process the conveyance at the land registry i.e. record the conveyance at the registry by buyer lawyer. To record the conveyance, the following documents are submitted:
- Original conveyance
- Notice of transfer of ownership stamped by the Land Tax Department.
- Section 12A form stamped by the Inland Revenue Department.
- Land Tax Certificate
The Land Registry completes 2 tasks:
- Have the conveyance assessed by the registry and then buyer pays stamp duties and transfer tax.
- Record the conveyance. The buyer lawyer goes to Land Registry. The land registry would record the conveyance and the buyer’s lawyers would receive back the original conveyance. When collecting the conveyance, the registry attached to it a page which identifies the recording particulars (i.e. where can it be found, which volume and which page). The original conveyance is needed so the buyer can use the property as collateral.
Time and cost: 21 days, BBD 52,207.75; (Transfer tax (if there is a building on top of the land, the first BDS 150,000 are exempted of transfer tax and the rest is taxed at 2.5%) + Stamp Duty (1% of the purchase price) + fees for recording the new conveyance (BDS 4 per page of the new conveyance and it usually is 4 pages))
