Eco real estate Belize 

FAQ about Belize

Can a foreigner buy and own property in Belize?

Belize was a British protectorate under colonialism and now as an independent country it is a part of the British Commonwealth. Its laws are therefore all based on the British common law system. A foreigner has the same legal right as a Belizean citizen to purchase and own property “Fee Simple” (freehold).

What types of titles are there in Belize?

At present there are three basic types of title ownership. The oldest form of title is Deed of Conveyance which originates from the British colonial days. This is a continuous record of the title by all previous owners from its origin as Crown land to present day owner. Such information is on the deed itself and backed up in the lands registry. Deed of Conveyance can be subsequently converted to a Transfer Certificate of Title by an application for first registration. The second form of title is Certificate of Title, this form of title is a physical certificate title, whereas ownership via Conveyance is a registered right to ownership of a particular parcel of land. The third form of title is Land Certificate this is a physical certificate showing a parcel number and size of the land. In 1987, the Government passed the Registered Land Act and certain areas of Belize were subsequently declared compulsory registration areas. The Government is in the process of re-registering all freehold lands under the Registered Land Act so as to eventually have a uniform nationwide system of land ownership.

Should I use an attorney to purchase property in Belize?

Absolutely, Attorneys are legally licensed, insured and have the expertise to do a proper and efficient search of title and issue a title opinion. The title is researched in the Lands Registry and in the Companies Registry if the land is held under a company. All and any liens, judgments, encumbrances, including restrictions and land use will be lodged in the registry. A title opinion for land which is not in the new registration section, such as conveyed land, takes a little longer as an abstract of title must first be prepared that goes back no less than 30 years. The statute of limitations on land claims is 30 years. An opinion of 'good and clear title' will be issued once the attorney has satisfactorily examined the abstract in fine detail.

Are condominiums titled the same as in North America ?

Yes, pretty much the same. Depending on the area of Belize where the condominium is located. Under the new registration zones where the strata act is applicable. In San Pedro Town, Belize City and Seine Bight ( Placencia area) there is strata titles ownership. Developers will have the foot print dimensions of the building surveyed and submitted to the lands and survey department where the title is kept by the government and subdivided so to speak into individual strata titles for each unit. The remaining areas of the physical land become common areas for all of the strata owners use and enjoyment. The second form of title ownership of condo/units is by corporate share certificate(s). This ownership structure is the same as "Co-op's. The advantages of Co-operative Corporate ownership are minimal closing costs as the value of the shares are assess for taxation rather than the 10%  stamp duty assessment and a higher degree of isolation from personal liability. The downside is that share certificates cannot be mortgaged by a lending institution as they affect the corporation as a whole. Both types of are legal and saleable.

Can I own property via my company?
Similar to buying property in Belize any foreigner can own a Belizean corporation and purchase property through this company. Your North American company can then own the Belizean corporation. The cost to form a Belizean corporation is about $800.00US and around $100.00US annually to keep it in good standing. If you purchase a Belizean company that owns the property then you will be subject to only a 7% tax on the value of the purchase price. This will give you a saving of 8% as the normal transfer stamp duty on title is 15%.

One can also own title to property by an offshore vehicle, be it a foreign trust or International Business Corporation (IBC). An IBC is the most popular and is simply an anonymous company that is housed in one of many offshore jurisdictions around the world. The ownership of the IBC is via bearer shares so there is no record in any registry of the actual shareholders of the company. The bearer shares can be issued in ones' names or in the name of the attorneys of the registered office for additional shielding. In most offshore jurisdictions the registered agent holds the bearer shares under security and privacy. In Belize, only a foreign IBC can hold title to shares of a company that owns real estate in Belize. IBC are more attractive to purchasers of larger entities as carrying cost can be quite high.

Does Belize have title insurance?

Title insurance can be bought through Stewart Title and First American out of USA. It is quite costly at approximately 2% of the purchase price and not necessary. In Belize the Title opinion and title search abstract obtained by a Belizean attorney is enough proof of “Fee Simple” title. Title in Belize is guaranteed by the government of Belize and therefore is deemed to be as secure as in North America. In addition, Stewart Title would provide insurance based on the attorney’s investigation and findings upon title search.

What are the closing costs in buying property in Belize?

In Belize there is no capital gains tax. There is a 15% 'stamp duty tax' on the purchase price of the property at the time of transfer of title. On a straight purchase, legal fees for title research and title transfer runs about 2% of the purchase price. Legal fees for drafting and recording an Agreement of Sale and Caution for property bought on terms /vendor financing runs about $650.00US. In Belize the purchaser are responsible for paying the closing costs.

Can I get local financing? 

It is usually not recommended as the rates are quite high around 12% to 15% and usually short termed. At the end of every term the loan is closed out and then renewed at the current lending rate. Local borrowing is usually only permitted in Belize dollars and thus US dollars exchange cost can be costly and difficult. Belizean offshore banking institutions does offer financing however the interest rates are approximately 12% and the banks require a 50% down payment or secure collateral. Belizean offshore banks are also not permitted to loan to persons residing in Belize.

Can I get Vendor financing?

Most transactions in Ambergris Caye and Belize are cash deals however some owners do offer personal financing. The rates are a bit high at approximately 10% to 12%. In most cases North American developers or landowners would provide financing on new projects or re-sales. An Agreement for sale similar to a Land Contract would be drawn up and this instrument is legally binding under Belizean law. Once the agreement has been registered or recorded at the Land Registry, it constitutes notice of that person's vested interest. The 'Legal Interest' does not pass to the purchaser at this point but the registered Agreement acts as a lien and security for such title being eventually transferred. The titleholder can no longer enter into any other contract on the property, sell, or mortgage the property. Title will be passed at such time when the purchaser satisfies all conditions of the agreement, which is when full payment has been made to the seller. When an Agreement of Sale is associated with property falling under the New Registration Act, an additional document called a 'Caution' is lodged in the property's register to act as a similar lien in the Registered Lands Department.

How do I go about buying property in Belize ?

Pretty much the same as in North America. Most people buy through a real estate broker or agent. You submit an offer to the seller through your real estate agent along with an earnest money deposit which is held in escrow usually by the real estate company or any other designate escrow company. The amount is usually between 2% to 5%. This document is signed by you and is legally binding once both parties have signed it. There is usually a reasonable “due diligence” period for the purchaser  

Once the offer is accepted by the seller, the purchaser will then retain a local attorney. The attorney will conduct a title search and draft up a recordable Agreement For Sale based on the particulars of the original purchase offer.

The remaining balance of the monies payable for either the down payment or the full purchase price will be due and payable at the time specified on the purchase offer or Agreement for Sale. Your attorney sends us copies of the prepared documents to review just prior to the transfer process. Once confirmation that all is in order the attorney will then instruct us to release the seller's escrowed funds. The transfer documents will then be executed by your attorney usually simultaneously upon receipt of the funds (closing occurs).

The executed documents will subsequently be processed at the Lands Registry and an original title and copy of the transfer documents will then be given to you by your attorney. This process takes about a month or two.  

Do I have to be present upon closing?

It is usually recommended however it is not necessary. The main thing is to physically see and identified what you are buying, obtain a local attorney and the rest can be done by us. Today technology enables us to proceed quit easily with courier service, faxes, computer e-mails and wire transfers.

How do I get a Belize bank account?

You will need proper identification including a copy of your passport, a mailing address and reference letter from your bank at home. You can also open a US account through one of our Belizean offshore banks. The requirements are similar as with the local banks but you cannot be a resident of Belize. You can however incorporate an IBC through the offshore banks and have a US account through this company.

How much are property taxes in Belize ?

Taxes are pretty minimal in Belize, for example in Ambergris Caye which is the main tourism hub and it is only about 1.5% of the assessed value. Assessments are usually conducted by the local municipality or town Board and are far below the actual market value.

Can I buy hurricane insurance in Belize?

All perils insurance covers hurricane insurance and is available on buildings and structures through local insurance companies who are re-insured by such international insurance companies as Lloyds of London. The rates are approximately 1.5% for concrete structures.

There are other variables influencing cost such as wooden structures, distance from ocean, type of foundation etc. Some companies are also steering away from insuring wooden structures. Deductibles are normally 5% of the sum insured on storms and less for fire.

Our Business: REAL ESTATE!

To provide you with the best service, choices and information to enable you to make an informed decision to purchase the right property for your investment and enjoyment.

We will assist you in everyway possible with the process of purchasing and will work closely with your attorney. If you decide to re-locate down here then we will also assist you with the  transition to island life.

WE LOOK FORWARD TO DOING BUSINESS WITH YOU.

Who We Are

We are born Belizeans who have lived abroad and have return home and are doing the business of real estate. We have an innate love and appreciation for our country and take pride in offering it to you. As naturalized Canadians and Americans, we can identify with you and your needs, and bridge the gap. We see you as a valuable client and a potential friend, not a transient DOLLAR SIGN visiting our Beautiful country!