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· LEGAL AFFAIRS
In the event that outright purchases cannot be immediately done an Agreement to Purchase and Sell is usually entered into between the buyer and Gomier Holdings. A deposit is required.
The normal deposit for purchase is 10% of the purchase price. To prevent gazumping, a forfeiture clause is introduced into all purchase contracts as follows:
- If the buyer pulls out before 90 days, all of the deposit is forfeited.
- If the vendor pulls out then the deposit must be paid back in full to the buyer.
- If the buyer is unable to proceed due to non-granting of the Alien's Landholding License, then the 10% deposit is refunded. Note that this is a rare occurrence.
Funds for the purchase of lots can be sent through the buyer's attorney or directly into the account of Gomier Holdings. Information for wire transfer of funds will be provided on request. |
| Property Purchase By Foreigners |
The property purchasing procedure in St Lucia is similar to that in the UK, with the exception of the Alien's Landholding License. Foreigners wishing to purchase land in St Lucia must first acquire an Alien's Landholding License. Laws were recently changed in St Lucia to make this process quicker and more flexible. Please note the following:
- A local lawyer must register the license.
- It is a permanent license, which does not require renewal.
- The license is granted for a specific property or plot of land and is not transferable.
- There is a non-refundable license application fee of EC$1,500.00.
- The license fee is EC$5,000.00 for properties measuring less than 1 acre and EC$10,020.00 if over 1 acre.
- There is a future tax liability of 10% of the cost of the property or plot of land, when eventually sold.
- Note that the payment of the 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 and cost EC$3,200.00.
- License applications usually take up to 3months to process and is normally done during the early part of the property purchasing process.
Note that when obtaining an alien's landholding license to buy land only, you are required to build within 2 -3 three years of purchase. |
| Procedures for Acquiring an Alien's Landholding License |
The application is vetted by the Physical Planning Office of the Ministry of Physical Development, Environment & Housing, before being sent to the Prime Minister's Office for approval. After the application has been approved the draft license is sent to the Office of the Attorney General for approval.
The list below indicates what one needs to submit with the license application form:
- Full details of the property or land to be purchased.
- A value assessment of the property or land.
- Statutory declaration.
- Four passport size photographs.
- Certification of character - report from your police department.
- Certified finger prints - from a police department.
- Treasury receipt for payment of the application fee (EC$1,500.00).
- Approval in principle, from the Development Control Authority (DCA) in relation to the use of the property or land.
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Stamp duty on the property being purchased is 2% of the purchase price.
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Local solicitor fees range from 3% to 5% of the purchase price.
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The start-up cost for property purchase is approximately 15% of the property price, made up of, 10% deposit + 2% stamp duty + 3% solicitor fees.
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When purchasing properties forming part of a new development, the developing company would put in place an escrow account for owners to make their deposits into, so that the money is totally safe. The development stage payments is typically as follows:
- 10% deposit
- 20% On completion of foundations
- 30% On completion of structure
- 20% On completion of roof and exterior
- 20% On completion of building
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When selling property in St Lucia, vendor's tax needs to be paid at a flat rate of 10% for non-citizens. If the property is owned by a local company and the property sale is effected through a share transfer then 2% is payable instead of the 10% vendor's tax.
St Lucian citizens pay vendors tax by the following breakdown:
- Nothing on the first EC$50,000.00
- 2.5% on the amount between EC$50,000.00 and EC$75,000.00
- 3.5% on the amount between EC$75,000.00 and EC$150,000.00
- 5% on the balance over EC$150,000.00
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· SALES DOCUMENTS
Covenant
All lot sales are governed by a Sales Covenant. This is to ensure that the desired standard is maintained at Gomier Heights and to protect the value of the buyer's investment.
read more
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Other Essential Documents
Important legal documents are needed for the sales process and/or information purposes.
read more
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