It also speeds up the process of acquiring your new property. Those of you who reside overseas should also check what are the relevant fund transfer procedures, fees and times. Different countries have different policies on fund transfer.
Financing for non-residents is available here but it will more than likely be more economical for you to do so where you reside due to the number of non-resident taxes and fees that may be applicable. Non-residents, please note that your purchase must be in foreign exchange, you have to register funds brought into the island for property transaction and gain permission from the Central Bank for the purchase as well. This is especially important for repatriation.
All property purchases must go through a lawyer. Let us know who your lawyer is as we have to send letters to all the lawyers of all concerned with the purchase of the property. There is no problem if you do not have one as we have several we can recommend.
There are other costs involved besides the purchase price. Your lawyer is the best person to enquire about this. There are a number of fees and taxes involved which depends on the final purchase price and other criteria.
To give you some idea of expenses there are land taxes, property transfer taxes both of which depend on the final purchase price. Legal fees are on a percentage and bracket basis. Example under $25 000 one rate, under $75 000 a different rate and so on. The higher the purchase price the lower the percentage rate. Rates are around 2.5-3% on the lower end and 1-1.25% higher end.
There are other costs involved besides the purchase price. Your lawyer is the best person to enquire about this. There are a number of fees and taxes involved which depends on the final purchase price and other criteria.
Please note that rates change regularly, this is just to provide an estimate. You should contact your legal representative for up-to-date rates and pricing. There is also a VAT (*17% local currency) on legal fees. All these taxes and rates are very variable so it is best to check with your lawyer for the recent rates and taxes at time of purchase.
Your lawyer is also the best person to talk to about the conveyance, if there is one, for the area the property you wish to purchase is in. Conveyance is a number of rules and regulations set out by government for a particular area. E.g. Minimum value building that can be constructed, types of building codes, structures, landscape practices etc. Conveyance varies with different areas. Also note some townhouse/condo complexes or real estate developments have their own conveyances and or policies.
The usual process of acquiring a property is to pay in a NON REFUNDABLE deposit and the rest paid within the period the lawyers deal with the transaction. So in order not to lose your deposit make sure all of your financial business is in order. Also note the property is not taken off the market until the deposit is made.
A note on transaction time: due to the work of lawyers, bank transfer of funds and paper work, it is very rare for deals to be finished in less than 3 months. So once again we emphasize the making sure all of your affairs are in order.
We hope this gives you an idea of some of the things you have to consider in making a property purchase. Please feel free to contact us for any additional information.
Appraisals/Valuations
Only accredited valuers should do appraisals. Our company has professional valuers. However please note we also employ Realestate agents with a range of Qualifications and Experience. Some of whom may not be valuers. So make sure you ask for an agent who is also an appraiser to discuss any aspects on valuation.
All valuations require inspection of the property. This will require an appointment. Land assessment only takes a few minutes. However please note valuers are NOT land surveyors. Only land surveyors can measure land area and point out land boundaries. This is a legal matter. Valuers will need a copy of the plot for the land, preferably, or at least a copy of the last land tax bill to acquire some of the information they need regarding the lot size.
Property valuations take some time. The average size properties take around an hour to take relevant information which involves the measurement of building dimensions inside and out among other things. Copies of the building plan would speed up the process of the valuation
Once all information is gathered a professional document is prepared. It will give you the current market value as well as how this figure was acquired. It takes about 3-5 business days to complete the valuation
To avoid any confusion, please make sure that you are specific as to the use of the valuation as well as to whom it is to be addressed (e.g. bank, insurance, lawyer etc.) This is to make sure you and the relevant parties get the relevant information required from the valuation.
Please feel free to contact us for more information.
Tel: 628-1376 or 236-7826.
Email: admin@ramsayrealestate.com
