• Newsletter Sign-Up

Buying Real Estate Property in Grenada

The Sales Process

  • An interested buyer will put forth an offer letter (prepared by your Century 21 agent).
  • If the offer is accepted by Seller, your Century 21 agent will formally notify (with Acceptance Letter) the purchaser that the offer has been accepted.
  • The Acceptance Letter is copied to the Seller’s lawyer and the purchaser’s lawyer.
  • Seller’s lawyer uses the Acceptance Letter to prepare a Sale Agreement. The Sale Agreement is sent to the purchaser’s attorney for perusal. Once approved, it is forwarded to the purchaser for signature.
  • Upon signature, the buyer is responsible to pay a deposit, typically 10%.
  • The deposit is retained by your attorney, and released only upon the closing of the sale.
  • A Title Search is carried out by the purchaser’s lawyer (to ensure a clear title) and a Conveyance is prepared.
  • The purchaser then makes final payment to their lawyer, which is sent on to Seller’s lawyer.
  • At the conclusion of the sale, Seller’s lawyer deducts and makes all required payments associated with the property, including:
    • Payment of the 5% government tax
    • Agreed sales commission
    • Outstanding taxes, association dues, utility bills, etc..
  • The duration of this process until completion is 1-3 months.

SELLING TO FOREIGN BUYERS: Non-Grenadian Residents are obligated to secure an “Alien Land Holders License” and pay 10% on the purchase price. The application process for the license can take 3-6 months.

Expenses for Purchaser

  • Legal Fees: Approximately 2% of purchase price + 15% VAT on fees (e.g. fees of $ 1000 x 15%= $ 150. Total fees=$ 1150)
  • Stamp Duty: 1% of purchase price
  • Surveyor’s Fee: 0.5% of property value (if applicable)
  • Alien Land Holding License (non-residents): 10%
  • Incidental Expenses: Approximately US$ 600

Expenses for Seller

  • Property Transfer Tax: 5% of the market value for nationals and members of the OECS, and 15% of the market value for non-nationals
  • Legal Fees: approximately 2% of the purchase price + 15% VAT
  • Real estate commission: normally 5% of the purchase price + 15% VAT (to be paid by seller)
  • Out-of-pocket expenses: approximately US$ 250.00

Government of Grenada allows an exemption on the first EC$ 20,000 of property value.
Value Added Tax – VAT: 15% on Agents Commission and Legal Fees.

Additional information for Non-Nationals purchasing property

Local banking institutions require declaration of ‘source of funds’ from the Buyer. For amounts above EC$ 250,000, approval is required from the Grenada Ministry of Finance.

Published by Century21 on . Last Updated .

Comments are closed