1. A Property Sales Agreement laying out the terms and conditions of the sale negotiated between the vendor and purchaser is usually prepared by a local Trinidad attorney and at tyhe same time the local attorney should also conduct a title search to confirm that the title is valid and free of all encumbrances.
A deposit (usually 10%) is then paid by the purchaser to secure the property upon signing the Property Sales Agreement.
A typical property purchase in Trinidad takes approximately 3 months.
The Vendor usually pays the real estate commission, since most agents in Trinidad act on behalf of the property owner (vendor) who lists their property for sale. Nealco Real Estate can show every property on the market through the Association of Real Estate Agents who share listings on a multiple listing service. We act on behalf of purchasers who wish to seek out unique property. Our fee in these cases would be applicable to the purchaser.
2. Legal Fees for title searches and preparation and verification of the Deed of Lease or Conveyance under the Legal Professions Act of 1997 Section 52 are paid on the purchase price of the purchaser:
TT$100,000 and under - 1.5% of the purchase price with a minimum fee of TT$400
TT$100,000 - TT$500,000 - 1.5% of the first TT$100,000 and 0.75% of the consideration in excess of TT$100,000;
TT$500,000 - TT$20,000,000 - The same charge as on a purchase price of TT$500,000 plus 0.5% on the excess beyond of TT$500,000;
It is important to note that this act prescribes in law for the fee structure that attorneys must charge, and is different in each case for Real Property; vetting of Conveyances and Mortgages on behalf of Vendors.
We would advise that you appoint a reputable attorney to search title before preparing the necessary Deed or Memorandum of Transfer vesting the property in your name, a local company, a foreign company, a trust, or any other entity. You may in fact need to seek the advice of a tax planner if the property is being purchased as an investment rather than to owner occupy.
3. If one is obtaining a mortgage, the purchaser will incur the following costs:
* A negotiating fee from the mortgagee to process the mortgage application;
* A valuation fee, since the mortgagee will require confirmation that there is a true assessment of security. The lending institution will lend on the lower amount being either the valuation or the selling price. Only a recognized valuer is recommended.
* Legal fees for title searches and preparation and verification of the Deeds and/or Memorandum of Transfer.
* Mortgage indemnity insurance fees - a one time premium to obtain financing over 75% - building insurance - and life insurance would also be applicable if one is dealing through a life insurance company;
4. STAMP DUTY is applicable on all property purchases and is payable by the purchaser.
Owner Occupied Residential Property:
Under TT$350,000- NIL
$350,000 - TT$450,000- 5% on the difference;
TT$450,000- TT$550,000- 7.5% on the difference;
TT$550,000 and over- 10% on the difference.
Land, Estates, Commercial, Investment Property:
Under TT$300,000 - 2% on the total
TT$400,000 and under - 5% on the total
Over TT$400,000 - 7% on the total
5. The following documents must be provided to the purchaser on signing of a Sales Agreement:
* Copy of registered Deed of Conveyance/Lease or Certificate of Title in the case of Real Property Ordinance lands;
* Land Tax Receipt for current year;
* Water & Sewerage Receipt and Clearance for the current quarter;
* In the case of leasehold lands - Lease Rent Receipt and consent to transfer the Lease;
In the case of Condo/Townhouses:
(a) Letter from Company stating maintenance charge; that maintenance is paid up to date;
(b) Memo & Articles of Association;
(c) Share Certificate in the case of a limited company;
(d) Confirmation of Sixth Schedule Annual Returns;
* If the vendor has a mortgage on the property, he needs to instruct the mortgagor to have the mortgage released and to forward same in escrow together with discharged statement of his account prior to the completion of sale in order that the balance of the purchase of price could be correctly dispersed.