mytropicalescape.com

Today we have our first guest writer here on mytropicalescape.com and they will be providing the finer details on the procedure associated with purchasing a home or property in the BVI (if you are not a citizen). These folks have purchased a home within the past couple of years so they are very well versed on the whole process.

Now that I have your attention, I would also like to point out that www.palmettoculebra.com has now been updated and as a new feature I added a tool that does translations so if you would like to read the site in Spanish, French, German, Japanese, Russian, Arabic, etc please check it out.

The post begins below and as noted above is written by a GUEST Writer:

Prospective buyers of a home (or land) in the BVI will be pleased to discover that many of the elements of the purchase are the same as the United States. Realtors are engaged to review and select candidate properties, negotiations regarding terms and conditions usually involve concessions by both parties, and settlement occurs with an escrow account and the transfer of fee simple title. However, there are some significant differences in the government’s participation in the process as individuals who are not born-locally or naturalized citizens (known as “belongers”) must acquire a non-belonger’s land-holding license in order to buy real estate in the BVI. In many respects, the application for the land license and subsequent delays will prove more vexing than the real estate purchase.

Many people are introduced to home buying in the BVI through a free publication entitled, The Property Guide. It is readily available on Tortola and provides advice on buying procedures as well as currently listed properties. Each issue showcases an exotic island home and the publication has slick color photos and guest commentary from local realtors, attorneys, insurance agents, etc. Along with the feature articles, each issue repeats a standard section called “Buying in the BVI.” This section provides important information on what you need to know and do; but here are some things that are NOT included:

1. Realtors do not post “For Sale” signs or hold open houses in the BVI. Multiple listings are not used and some properties are listed by more than one company. Therefore, you must visit each realtor to learn about what is available through his or her office. Much of this research can be done on-line and you may see the same property listed in two different offices, as BVI realtors do not require exclusive listings.

2. The properties advertised in the newspapers are not necessarily available. A BVI requirement for non-belonger real estate purchase is that the property (and agreed upon price) must be advertised for four weeks after the seller and purchaser have completed their sales agreement. Unless you are a belonger (not likely if you’re reading this), most of the ads cannot be pursued as they only apply to belongers who wish to exercise their right of first refusal. (More about that in number 3.)

3. As described above, a non-belonger must advertise a sales contract in the local paper for 4 consecutive weeks. The BVI code allows a belonger to purchase the property at the negotiated price. In this case, the non-belonger loses the contract and the seller must conclude a new agreement with the belonger. What The Property Guide does not mention is that the rights of first refusal continue throughout the land-holding license application, not simply the 4-week advertising period. Although there is some ambiguity about this issue, the consensus opinion is that a belonger’s rights of first refusal are valid until a non-belonger license is issued, a process which usually takes the government up to a year to complete. “This is a very nerve-wracking time,” one couple told me. At that point, you’re glad that no one uses “For Sale” signs and buyers become evasive in casual conversations about the location of their prospective home!

4. There are no bargain deals for non-belongers. (Remember the first refusal rights in number 3?) If a house is a bargain, there are plenty of well-to-do belongers who will also see its merits. Likewise, there is a lot of price testing so don’t be discouraged if the seller seems to be acting oddly. Usually, the seller is trying to find out just how little the out-of-towners know about the local market and how much they’re willing to pay. One way to examine the market is to collect listing and sales information over a multi-year period; i.e., every time you visit the BVI on vacation. You may be surprised to see prices go up on properties that never sell?!? Those listings are to be avoided whereas there are plenty of genuine, motivated sellers who have priced their home fairly with respect to the market. A little patience goes a long way in the Caribbean.

Sometimes life in the Caribbean is sweeeeeet!

The Process:
A brief chronology of the home purchase events follows with some editorial comments about the more unusual elements. Unimproved land purchase follows a similar sequence but there are some additional requirements and challenges for the buyer as home construction in the BVI reflects local building practices and materials. In both cases, the buyer will invariably engage a realtor, building inspector (or architect for new home construction), attorney, and possibly an application ‘facilitator’ to assist in the process. A home purchase may take more than a year from initiation of the real estate search to receipt of the land-holding license. The government generally takes 1 year to review land-holding applications and issue the license. Living in the BVI during this period does not appear to expedite the process so the applicant should be realistic about housing requirements during this period. New home construction entails extensive government review of the building plans (after the land-holding license is granted) and the review may take up to a year. The actual construction for a ‘typical’ home will require at least a year and perhaps 2 years. New home construction has additional monetary considerations as the government requires that you invest a specific amount of money (currently $250,000) and the home must be completed within two years of closing. (This post will be continued.)

And sometimes life in the Caribbean is…

Next post will be Thursday morning and will include Papua New Guinea, an arrow, and a hunting trip that went terribly awry for one villager.