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BVI HomeSense – 10-Step Guide to Purchasing Your Dream Home
Photography by Rainbow Visions BVI
In the BVI HomeSense column, we address concerns that apply to buying and selling property and to real estate ownership.
This month, we will answer a frequently asked question for visitors who wish to purchase property in the British Virgin Islands, but are either baffled by our system or have no clue at all how it works.
Please note the references in the following steps to ‘Belongers’ and ‘Non-Belongers’: A Belonger ‘belongs’ to the British Virgin Islands by birth, marriage, or special designation. A Non-Belonger does not hold these privileges.
The 10 steps listed below will walk you through the process, hopefully toward a great investment and buying the residence of your dreams to live in paradise.
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1. Make an offer and give it your best shot. Your real estate agent will write a ‘Letter of Intent’ to purchase the property. Refer to our May article, Negotiating an Offer or online How to Get the Best Property Offer for helpful tips
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2. Leave an earnest money deposit. Your real estate agency can act as an escrow agent and hold a 10% deposit, usually in the form of a check
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3. Draw up a sales and purchase agreement. This is often best left to the attorneys
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4. Property Advertisement. It is mandatory for the property seller to advertise the property locally, with a contracted price, for four consecutive weeks. If no buyers step up to the plate, you are a step closer to acquiring your dream home
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5. Non-Belongers land holding license (NBLHL). Non BVIslanders need to apply for a license to own property. Among other documentation, the applicant must present a police certificate, financial statements and personal references. Belongers have the advantage of skipping this step
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6. Be patient. It can take 4-9 months for approval of the NBLHL – longer if a sea bed lease is involved in the purchase of the property
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7. Submit the draft license for vetting. After approval, a license executed by the BVI Governor can take several weeks to be issued
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8. Again, be patient! An important step throughout the process until it’s time to close
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9. Stamp Duty. After closing, duty of 12% of the greater of the appraised value or the contracted price must be paid by Non-Belongers. This amount is less for Belongers
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10. Register. Present receipt of stamp duty along with transfer documents to have the property registered in your name
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The steps above should provide adequate direction in purchasing a property in the British Virgin Islands. Often, this procedure can be completed within a year.
We look forward to your input on this column and hope to address your BVI HomeSense interests.
