When Buying a Property
Things that you should know when buying a property:
- Visit to your bank or Mortgage Broker, for Professional advice based on your present income etc… This will give a clearer picture of the amount that will be mortgaged to you. This step is important in that you do not waste time looking at properties which you cannot afford. Please note that most Real Estate Agents may be hesitant to show you any property for sale before this step takes place, so get pre-approved before you begin your search. If you would like us to recommend to a Mortgage Officer for your Free Evaluation call us on 868-745-4252 for details.
- Your next step is call us or visit us for a property search evaluation. This step is important as you will not only establish a good relationship with your agent but they will brief as to your needs, desired location of choice, property type, budget etc.
- Once you have established a relationship with your Liberty Real Estate Agent, you will be kept up to date and advised of the market changes so that you can make a sound Real Estate Investment.
- There is no charge for showing properties so see as many as you like before making your decision.
- Once you made a decided on a property, you can proceed to making an offer. This can be done both verbally and in writing, outlining the price and terms being offered. Your offer will be handled by Liberty Real Estate Agency with the utmost confidentiality and no direct negotiations should occur between the buyer and seller.
- It is common practice that a deposit be paid to accompany your offer. This deposit is to be held in escrow until closing of the sale. A Sale/Purchase agreement must be signed by both the purchaser and the vendor.
- Please keep in mind once you make an offer it may not be subjected to valuation. Your offer price and valuation price may not be equal. If your offered price is higher than that of the incoming valuation, this may mean that the difference will not be covered in your mortgage, as most financial institution only loan 90% of the valuation . You will need extra funds to cover this amount.
- Remember to take into account closing costs such as Stamp duties, Legal Fees, etc before committing yourself to a purchase , These closing cost can be from 6 – 9%of the cost of the property,
The following is the stamp duty calculation:
With effect from October 1, 2008, the stamp duty applicable on the transfer of residential properties will be as follows –
- Up to $850,000 - Exempt
- More than $850,000 but not exceeding $1,250,000 - 3.0% on excess
- More than $1,250,000 but not exceeding $1,750,000 - 5.0% on excess
- More than $1,750,000 - 7.5% on excess
When the property is a commercial property or land only (Non-Residential Transfers) the stamp duty payable is as follows:
Non-Residential Transfers (Includes Commercial Properties and Land)
Where the consideration for the sale:
- does not exceed $300,000.00 TT – 2%
- exceeds $300,000.00 TT but does not exceed $400,000.00 TT – 5%
- exceeds $400,000.00 TT – 7%.
Once the appropriate stamp duty has been paid, as certified by an embossed stamp affixed by the Board of Inland Revenue, the original transfer documents are lodged with the Registrar General’s Department and a registered copy will be delivered to the Purchaser as proof of his ownership of the land. The registration fee payable is typically $100.00 TT.
- Liberty Real Estate can prepare a standard Sale/ Purchase Agreement; feel free to have your Attorney review this before signing. You can have your Attorney prepare this sale agreement. Once the agreement is signed then the agreement is considered binding.
- All Legal cost incurred in purchasing the property is for the buyers account. Searches and the conveyance and legal fees will be done by your lawyer ( if going through a bank this would be the banks’ lawyer )
- A 10% down payment with a closing time of 90 days is normal practice.
- Upon signing of the sale agreement both parties will retain a copy of the Agreement. Liberty Real Estate will follow through with the sale keeping in regular contact with you and your attorney and the seller until the completion.