It is very easy to buy property in the Turks and Caicos Islands. The Torrens Land Registry system sets out that title to land in here is guarenteed by the Crown.
There
are no restrictions on foreign ownership of property.
There are no real estate taxes, although there is a one time only transfer
tax called Stamp Duty which rates apply to everyone upon purchase of the
property. See: Stamp Duty to
determine the tax bracket that applies to your considered purchase.
Before
viewing houses or condos, determine your budget taking into consideration
the stamp duty of perhaps 9.75% of the sale price (As April 1st for 90
days, the stamp duty has been reduced to 6%, but this expires June 30,
2008.) See: http://www.turksandcaicosrealestatebestbuys.com/stamp.html
The cost for legal fees are about 1% of the cost of the sale price, so
be prepared to add between 7% to 11% to the advertised sale price of the
properties viewed.
Many people who buy in Turks and Caicos are from outside of this country and find that it is more efficient to mortgage property in their home country and bring cash to Turks and Caicos. Mortgages are available here in the Islands but often rates are 3 points higher than prime in Canada or USA. Banks here will need to appraise the home or condo being purchased to make sure it is valued correctly and the applicant for the mortgage will still need to qualify.
Because Turks and Caicos is a tax haven and banks here are obedient to secrecy laws, there is a discontinuity between banks here and abroad. Therefore one may not apply for a mortgage abroad upon a purchase in this country expecting mortage interest to be deductible in their home country.
Once a house is chosen, be diligent about details of construction and repair. Often, it is advisable to make an offer that is conditional on having an inspection done by a qualified builder who will tell you impartially work that may need to be done or that has been done incompletely. Do you due dilligence as well about location and ask your realtor to show you comparible sales so that you understand the asking price or offering price is fair market value.
Consider that if you are buying a condo or townhouse, duplex, apartment or separate villas, there may be a monthly fee called Strata Fee. Strata means a group of owners of a complex. All owners will be contributing to the maintenance of facilities, as they each own their unit but they also collectively own the common property, and for that they pay their share of the maintenance costs of common facilities and that is Strata Fee.
Preliminary Agreements have to be signed when you have found the home of your choice (see: Legal Procedures). Once you and the seller have come to agreement on all terms and conditions, your lawyer and theirs will arrange a legal contract along with a deposit that will become firm and binding. Next, the transfer of money and ownership will take place, after which title is registered with Registrar's Office in Grand Turk and the title to your property is guaranteed.
Remember that along with closing costs, you will need to arrange homeowners' insuance which provides financial protection against accidents and disasters. Hurricane insurance should be part of the package.
Ask Peter to suggest a number of good attorneys, builders, inspectors and insurance companies that are available on the Islands. It is part of his job as your realtor to make sure that you are informed and educated in every area of your purchase of a home here in Turks and Caicos. Realtors are free to the purchaser but it is their job to know the market and inform and advise in a way that helps you make the choice that best meets your criteria.