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.
- 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 1-2% 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 agreed sales price (if applicable)
- Alien Land Holding License (non-residents/citizens): 10%
- Incidental Expenses: Approximately US$ 600.00
Expenses for Seller
- Property Transfer Tax: 5% of the purchase price for nationals and members of the OECS, and 15% of the purchase price for non-nationals
- Legal Fees: approximately 1% 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/Citizens 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.