Country Buying Guides - Grenada

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Grenadian legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Alien’s Landholding
The property purchasing procedure in Grenada is similar to that in England and Wales, with the exception of the Alien’s Landholding License. Foreigners wishing to purchase land in Grenada must first acquire an Alien's Landholding License. The process of obtaining an Alien Land Holding License can take up to 3 months; however once you have received the license completion can occur in as little as a month and currently costs 10% of the selling price payable at the Inland Revenue Department. A notary public must handle the paperwork and a police clearance from your place of residence and bank reference is necessary to process your application. This process can take.

• The Licence

o A local lawyer registers the licence.
o It is a permanent licence, which does not require renewal.
o The licence granted is not transferable; it is for a specific property or plot of land.
o There is a future tax liability of 10% of the cost of the property or plot of land, when eventually sold. This payment of 10% tax can be avoided by making the purchase through a company, which can be formed at the time of purchase. Company formation takes approximately 6 weeks.

• Purchase Deposit
Buyers are expected to pay a deposit of 10% during the contract signing, as a standard clause in Grenada’s property sale contracts to prevent either party from being ripped off. This deposit is forfeited if the purchaser pulls out. Should the vendor pull out, the purchaser receives double their deposit back. On very rare occasions the buyer is unable to proceed due to non-granting of the Alien's Landholding License, here the 10% deposit is refunded.

• Completion
After the License has been granted, the actual transfer takes place. Any outstanding balance on the sale will be settled. Once the property has completed and all fees have been paid, the registration of the new title Deed in the Deeds and Land Registry takes about 60 days and you will have the title to your new Grenada property. If the buyer purchases land only, the buyer is required by the Government to develop or build on the land within 2-3 years from the date of purchase.

• Purchasing Off-Plan
When purchasing properties forming part of a new development, the developing company puts in place an escrow account for owners to make their deposits into, so that the money is totally safe An Escrow Account is an account which the purchaser transfers money into and neither can gain access to the balance until the transactions are complete and the purchaser is in full ownership of the property. This is a safe and practiced method of payment for property abroad. Payment of an off plan property is staggered typically; 10% deposit, 20% on completion of foundation, 30% on completion of structure, 20% on completion of roof and exterior, 20% on completion of building.

• Costs & Taxation
In Grenada, the purchaser must pay a General Consumption Tax of 5%, payable at the Inland Revenue Office, stamp duty at 1% payable at the Deeds and Land Registry, and EC$ 250.00 for government fees

• Inheritance
Most foreign legal systems’ inheritance law is different to our system, hence it is extremely important to use your independent lawyer to help you make a will so that in the unfortunate event of your passing, your wishes and not the word of the law is followed.

In Assocation With The International Property Law Centre LLP