Purchasing land in Saint Lucia may sound like an intimidating process but it is quite simple when the process and requirements are presented to you in a concise and transparent manner. This simple guide will walk you through the process and equip you with the knowledge needed to start your investment.
Purchasing Land in Saint Lucia
1. Introduction
Purchasing land in Saint Lucia involves several steps which begins with:
identifying the land available for purchase,
identifying the owner of the property, and
then acquiring the necessary documents and permissions to transfer of title from one owner to the other
An individual portion of land in Saint Lucia is referred to as a Parcel....identified by a unique reference number combination, being the Block and Parcel Number.
An individual portion of land in Saint Lucia is referred to as a Parcel. Each of these land units is identified by a unique reference number combination, being the Block and Parcel Number. The format is as follows:
Four (4) numbers followed by a letter [Block] + a number [Parcel]
eg . 0031B 107 or
1046C 2345 or
9932B 2
2. IDENTIFYING THE PROPERTY
The land of interest can be identified through your very own contact with the owner who can provide you with critical details of the property, real estate agents, news papers or via the services of the Department of Planning.
In depth research on the property should be conducted by the purchaser to ensure that it is indeed a piece of land you are comfortable investing your hard earned funds into. Things to consider are:
The square footage (sq ft) of the property
The environment the property is located as well as legal access to the property
The utilities that are readily available (water, electricity, cable & internet)
The ambience of the property during the day and night
Potential future value of the property
A second option to identify the property is via the Land Registry at the Department of Planning.
The land of interest is first identified on ground or on a map. Saint Lucia has no formal addressing system, so this must be done using familiarity with the area and proximity to main roads and identifiable features.
Visit the Surveys and Mapping Office of the Department of Physical Planning. There, attendants will assist with identifying the property location. Important information to have would be the Quarter where the land is located (eg. Castries, Micoud, Laborie) as well as the community name (eg. Sunny Acres, Dugard, Banse).
Upon identification, the Block and Parcel Number would be provided as well as an Extract of the Land Registry Map from Surveys and Mapping Office for a fee. A copy of the Lodged Survey Plan for the parcel can also be obtained here if one exists. This plan would show the actual area of the property along with detailed dimensions.
3. IDENTIFYING THE OWNER OF THE PROPERTY THAT IS FOR SALE
Again, the owner of the property can be identified if you made direct contact or via a real estate agent. Confirmation of ownership is important and should be done by the owner presenting an official Deed of Sale or Land Register. These two pieces of documents give a comprehensive detail of the land and its rightful owner.
The Land Register shows the official Title of Land Ownership as currently registered. The copy can be used to conduct most financial, legal and official transactions by the registered owner.
Another option is to visit the Land Registry. Visit the Land Registry Office and place a request from the front desk attendant, a copy of the Land Register for the Block and Parcel Number provided. This incurs a fee to be paid at the cash attendant. When the document is ready, it is collected at the cash booth. This document will be a copy of the Land Register (with date stamp). Each parcel of land would have a separate Land Register sheet.
The Land Register shows the official Title of Land Ownership as currently registered. The copy can be used to conduct most financial, legal and official transactions by the registered owner. It has several items of information:
Name of owner(s) and Address
Quarter Location
Block and Parcel Number
Survey Plan Number (if available/furnished)
Approximate size / area of land (in hectares only)
Nature of Title
Deed reference and date of last transfer
Incumbrances on the property
.. among other articles.
4. ACQUIRING THE NECESSARY DOCUMENTS AND PERMISSIONS TO TRANSFER OF TITLE FROM ONE OWNER TO THE OTHER
Obtaining the land register begins the process of assessing the availability or readiness of the land for any transaction. The availability of the name provides a point of contact to the owner. Upon contacting the owner negotiation for sale could be discussed. If negotiations are favourable, Legal Council should be sought to safely proceed.
Key words:
Purchaser – person buying the land
Vendor – person selling the land
Mortgage – a loan where property is used to secure the cash borrowed
Lien – a way to secure a debt a property owner may owe to another person
Mortgagor – Financial institution lending money to a purchaser
Mortgagee – person borrowing money from a financial institution
An Attorney would be required to get more detail to best facilitate the transaction as certain documents are not available to the general public. They would use the Land Register to extract further information such as the deed and incumbrance details that may be pertinent in assessing any restrictions that may be associated with the Parcel of interest. Items to note:
A mortgage or lien on the property must be cleared before the land can be sold;
A caution would prohibit transfer of the property without the consent of the cautioner;
Foreigners/Aliens require an Alien Land Holding License to hold property in Saint Lucia; unless exempted under the Alien Landholding License Act, the Movement of Factors Act or by Cabinet Conclusion;
For Companies, either as buyer or seller, a certificate of Good Standing from the Registry of Companies is required to certify that the company is a validly existing company.
4. COMPREHENSIVE LIST OF DOCUMENTS REQUIRED FOR PURCHASE
Financial assurance documents need to be provided if a loan with a financial institution/lending agency is required. To commence the lending process, the financial institutions will request a list of documents from you. This entails:
Mortgage Loan (House & Land/Land)
Picture I.D (purchaser and vendor)
Down Payment/Equity (10%-30%, depending on the lending institution
Letter from employer stating length of service
Salary Slip (latest)
If self-employed - evidence of income
Vendor's letter stating intent to sell to purchaser, property details and total agreed selling price. (letter must be witnessed)
Copy of vendor's Deed of Sale
Copy of Land Register (recent)
Copy of Survey Plan
Property valuation from certified valuator/Quantity Surveyor
Term Life Insurance (offered by financial institution)
Certificate of Good standing – if the vendor is a company.
Provide written certification from the following entities for purchaser(s) and vendor(s) providing compliance with their requirements:
Compliance Certificate - from the National Insurance Corporation (NIC).
This is to ensure that the purchaser is not indebted to the NIC at the present date.
Tax Clearance Certificate - from the Inland Revenue Department. This is to ensure that there are no Land and House Tax liability attached to the property and that the purchaser is not indebted to the Government of Saint Lucia for the payment of existing income tax at the present date.
Upon gathering all requested documents, a visit with the lending agency to discuss and consider the terms and conditions of the loan is required.
Upon a loan agreement, the lending agency provides a Letter, which states the terms and conditions of the loan to be taken, to the lawyer who is to execute the land transaction. In some cases, the lending institution’s lawyer may be the executing notary. Majority of the documents you submitted to the bank will be included in the file to the Lawyer.
The lawyer then prepares a document - “The Deed of Sale”, which must be signed by the purchaser and the vendor in the presence of the Attorney. For the purpose of the mortgage, a document called a “Hypothec” is prepared and signed by the Mortgagor and the Bank in the presence of the Notary.
The lawyer also prepares two copies of the original document. This document is to be presented to the Inland Revenue Department where stamp duty is paid by the purchaser and vendor’s tax by the vendor.
Upon payments of those fees, the Deed of Sale is taken to the Land Registry to be registered. A twenty-dollar registration ($20.00) fee is required for each Block & Parcel affected by the transaction.
This completes the Land Registration process.
The Land Registry Department retains one (1) copy for their records, and two (2) copies are issued to the lawyer.
The lawyer retains the original document and the copy is given to the purchaser.
Source: Department of Physical Planning and Development
1st Floor Greaham Louisy Administrative Building
Waterfront Castries Saint Lucia
Comments