Legal Steps To Owning A Piece Of Turks And Caicos Paradise

Having you found your dream home in paradise, what is the procedure for ownership and getting the keys?

Happily, after a price is agreed, the process of buying a home is typically straightforward. If you do not already have an attorney to guide you, the realtor will happily assist, with suggested attorneys from the Turks and Caicos Bar.

No licence is required to buy in Turks and Caicos, the currency is US dollars, and there is no exchange control.

Additional to price, typical buyer's costs are stamp duty (a form of transfer tax of up to 10 per cent of the price), land registration fees (often less than $100.00) and buyer's attorney fee of 1 per cent. Typically, the seller pays the realtor's commission and seller's own legal fees.

A seller's attorney writes the sale and purchase agreement. A buyer's attorney checks the sale and purchase agreement is suitable. The sale and purchase agreement is typically in a format agreed by most attorneys in Turks and Caicos.

If financing is required, closing can be conditional on a reasonable bank offer. Similarly, there can be survey or other conditions. For a popular property however, a seller may be reluctant to accept a conditional buyer.

Financing may be through a Turks and Caicos bank, secured by the Turks and Caicos property; or by a bank in say your hometown, secured by your residence, or other property.

A buyer may acquire in his or her name, or that of a company, or trust. Company ownership may be useful for various purposes, not least to limit liability. Trust ownership may be useful for estate planning purposes. Consider the buying entity carefully, as stamp duty etc. may be repeated, for any further transfers. A Turks and Caicos company or trust can be swiftly established.

Before signing a sale and purchase agreement, review a statement from your attorney, detailing the money required to close, pay stamp duty, registration and attorney fees etc., with a contingency for reimbursing utility and management fees etc. paid in advance by a seller.

Typically a 10 per cent deposit is payable on signing a sale and purchase agreement. Funds sent internationally can take several days to arrive. Delays can occur with extra procedures required by your bank, or intermediate banks and with weekends and holidays.

After signing a sale and purchase agreement, a legally binding contract exists and so an obligation to close, on the stated date (subject to any specified condition). Closing is typically 10 to 30...