How to Buy Property in Grenada
Alien Land Holders Licence
For non nationals wishing to purchase property in Grenada, the property must first be identified and then an application made for an Aliens Land Holding Licence. This application is usually made by a lawyer and involves a police clearance from the purchasers country, a bankers reference and a character reference. Upon granting the Licence, the purchaser pays an Alien Land Holding Tax which is currently 10% of the purchase price
Grenada Property and Land Investment
The information shown below is a guide only and while we have endeavored to show accurate information we do not guarantee its accuracy
Buyers Legal Fees - Approximately 2% of the Purchase Price.
Stamp Duty - Approximately 1% of the Purchace Price.
Mortgage Down Payment - Usually a minimum of 10%, but can be as low as 5%.
Mortgage Repayment Time - Up to 30 Years or until the borrower reaches 65 years of age.
Mortgage Interest Rate - Range from 7.75% to 9%
Life Insurance - This is required if you need a mortgage.
Sellers Legal Fees - Approximately 1% of the purchase price
Property Transfer Tax - 5% of the purchase price for nationals and 15% for non nationals.
Real Estate Commission - Normally 5% of the Purchase Price .
Early mortgage termination fee - There is normally a fee when a mortgage is terminated before the agreed time period.
Tenure and Registration Section
The majority of property in Grenada is owned fee simple. A purchaser will normally acquire absolute title which is registered in the Grenada Government Land Registry. Registered titles relate to a detailed cadastral survey which defines legal boundaries. No transfer of land can take place unless the boundaries of the property have been determined to the satisfaction of the Registrar of Lands.
Property in Grenada may also be held on long lease from private individuals. The leases term is normally 99 years or the unexpired term in the case of an assignment of a lease. For practical purposes a purchaser of such a leasehold interest will enjoy all the benefits of an absolute title for the duration of the lease.
Property is passed by conveyance of title, which is evidenced by the recording of title deeds and certified survey plans at the registry of title.
Once the purchaser has agreed to buy, and the vendor have agreed to sell, a legal contract has to be drawn up by a lawyer in Grenada, which provides for a deposit to be made to secure the property. The vendors attorney holds this deposit in escrow until completion of the sale when the balance of the purchase price is paid and the title passes to the purchaser by way of the conveyance.
The purchaser will require a registered Grenadian attorney to search the register and establish title to the property prior to the completion of sale to ensure that there are no encumbrances, charges, encroachments or other impediments to the sale.
It will normally take 2-3 months for all the legal issues to be resolved.
Development in the Grenada is controlled by Planning Guidelines which determine general policy. Development work must be approved by the Authorities who are concerned with planning matters and by the Building Authority who are responsible for ensuring that building conforms with the building code guidelines.
It is preferred if working drawings submitted to these Authorities are prepared by architects based in the Grenada.
History and Background
Most of Grenada's population is of African descent; there is some trace of the early Arawak and Carib Indians. A few East Indians and a small community of the descendants of early European settlers reside in Grenada. About 50% of Grenadas population is under the age of 30. English is the official language; only a few people still speak French patois. A more significant reminder of Grenadas historical link with France is the strength of the Roman Catholic Church to which about 60% of Grenadians belong. The Anglican Church is the largest Protestant denomination.
Before the arrival of Europeans, Grenada was inhabited by Carib Indians who had driven the more peaceful Arawaks from the island. Columbus landed on Grenada in 1498 during his third voyage to the new world. After several skirmishes with the Caribs, the French brought in reinforcements from Martinique and defeated the Caribs the last of whom leaped into the sea rather than surrender.
The island remained under French control until its capture by the British in 1762, during the Seven Years War. Grenada was formally ceded to Great Britain in 1763 by the Treaty of Paris. Although the French regained control in 1779, the island was restored to Britain in 1783 by the Treaty of Versailles. Although Britain was hard pressed to overcome a pro-French revolt in 1795 Grenada remained British for the remainder of the colonial period.
During the 18th century, Grenada's economy underwent an important transition. Like much of the rest of the West Indies it was originally settled to cultivate sugar which was grown on estates using slave labor. But natural disasters paved the way for the introduction of other crops. In 1782, Sir Joseph Banks, the botanical adviser to King George III, introduced nutmeg to Grenada. The islands soil was ideal for growing the spice and because Grenada was a closer source of spices for Europe than the Dutch East Indies the island assumed a new importance to European traders.
The collapse of the sugar estates and the introduction of nutmeg and cocoa encouraged the development of smaller land holdings, and the island developed a land-owning yeoman farmer class. Slavery was outlawed in 1834. In 1833, Grenada became part of the British Windward Islands Administration. The governor of the Windward Islands administered the island for the rest of the colonial period. In 1958, the Windward Islands Administration was dissolved, and Grenada joined the Federation of the West Indies. After that federation collapsed in 1962, the British Government tried to form a small federation out of its remaining dependencies in the Eastern Caribbean.
Following the failure of this second effort, the British and the islands developed the concept of associated statehood. Under the Associated Statehood Act of 1967 Grenada was granted full autonomy over its internal affairs in March 1967. Full independence was granted on February 7, 1974.
After obtaining independence, Grenada adopted a modified Westminster parliamentary system based on the British model with a governor general appointed by and representing the British monarch (head of state) and a prime minister who is both leader of the majority party and the head of government. Sir Eric Gairy was Grenada's first prime minister.
On March 13, 1979, the new joint endeavor for welfare, education, and liberation (New Jewel) movement ousted Gairy in a nearly bloodless coup and established a people's revolutionary government (PRG), headed by Maurice Bishop who became prime minister. His Marxist-Leninist government established close ties with Cuba, the Soviet Union, and other communist bloc countries.
In October 1983, a power struggle within the government resulted in the arrest and subsequent murder of Bishop and several members of his cabinet by elements of the peoples revolutionary army. Following a breakdown in civil order, a U.S.-Caribbean force landed on Grenada on October 25 in response to an appeal from the governor general and to a request for assistance from the Organization of Eastern Caribbean States. U.S. citizens were evacuated, and order was restored.
The present government is headed by Dr. Keith Mitchell and Chief Minister. Grenada is governed under a parliamentary system based on the British model; it has a governor general, a prime minister and a cabinet, and a bicameral Parliament with an elected House of Representatives and an appointed Senate.
Citizens enjoy a wide range of civil and political rights guaranteed by the constitution. Grenada's constitution provides citizens with the right to change their government peacefully. Citizens exercise this right through periodic, free, and fair elections held on the basis of universal suffrage.
Security in Grenada is maintained by the 650 members of the Royal Grenada Police Force (RGPF), which included an 80-member paramilitary special services unit (SSU) and a 30-member coast guard.
The United States, Venezuela, and Taiwan have embassies in Grenada. The United Kingdom is represented by a resident commissioner (as opposed to the governor general who represents the British monarch). Grenada has been recognized by most members of the United Nations and maintains diplomatic missions in the United Kingdom, the United States, Venezuela, and Canada.
Grenada is a member of the Caribbean Development Bank, CARICOM, the Organization of Eastern Caribbean States (OECS), and the Commonwealth of Nations. It joined the United Nations in 1974, and the World Bank, the International Monetary Fund, and the Organization of American States in 1975. Grenada also is a member of the Eastern Caribbeans Regional Security System (RSS).
Please note that the information on this page is subject to constant change and revision and may not be fully up to date. Users are advised to verify any information that could effect their decision on buying a property, visiting this country or any other matter of importance.