Watch the Boats Sail in at a Misty Harbor in Belize
The Belizean Government has established a series of laws and incentives to promote foreign investment in the country and property ownership. Foreigners are able to own land and property in their own name with equal rights as Belizeans and there are no restrictions on the way in which foreign capital can enter the country.
Title to property in Belize can be held in three different ways; Deed of Conveyance; Transfer Certificate of Title and Land Certificate. A Deed of Conveyance is the old form of title ownership and is a registered instrument of ownership. A Deed of Conveyance is a valid legal title once an attorney has confirmed that the seller has good title to the property. This form of ownership can be converted to a Certificate of Title with an application for first registration. Any subsequent buyer is issued a Transfer Certificate of Title. A Land Certificate is an absolute title and applies in new or specially designated areas. Under the Registered land Act of 1987, the government is converting all freehold land (held under Conveyance) to achieve a uniform system as areas are being surveyed. The most straight forward way to own property in Belize is in your own name. It is also a simple process to hold the property in the name of a corporation and many Belizean law firms have ready shelf corporations for sale to make this process an efficient one.
When purchasing a property in Belize you will need the services of a qualified attorney. (See ‘How to go about choosing an attorney’) The process of legal due diligence involves a number of checks on the property, as would be the case in any other country. The property title is reviewed to ensure that it is in the name of the current owner of the property and duly registered. Any irregularities with this document can point up areas for the attorney to check in more depth. The attorney will establish whether the property is free of mortgages, debt or pending legal cases. Once these checks have been completed and assuming the property has been cleared for sale, a new contract is written including all terms of sale as well as any requirements relating to the satisfactory completion of further technical due diligence and surveys needed prior to closing. Following the closing the final stage is for registration of the title deed in the buyers name.
It is possible to complete a property transaction if you are not in Belize. The documents are sent via FedEx DHL or UPS to you for execution in front of a notary public. Alternatively, if you are not planning to be in Belize for the closing you can prepare a power of attorney. The power of attorney can be given to a representative of Coldwell Banker Belize Real Estate, your lawyer, or to any individual, living in Belize, who you would like to represent you.
Legal fees vary from 1% to 3% and are always paid by the Buyer to the lawyer they have chosen to represent them. Those fees typically include title search and opinion, escrow, title certificate, registration, payments of taxes and government fees and disbursements. The Government of Belize charges a 5% Stamp Duty on property transfers on any amount exempting the first US$10,000. Property taxes are levied yearly in advance and generally at 1.5% of the assessed value. Assessments are usually at 10-40% of the market value.
