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.