Agreement For Sale/Share & Purchase Agreement

A legally binding contract signed by both buyer and seller outlining the terms and conditions of the sale, including price, deposit, and completion date.

Completion Date
The day when ownership of the property is legally transferred from the seller to the buyer.

Closing Costs Statement
Fees and taxes associated with finalizing a property transaction, where applicale

Company-Owned Property
Real estate held under a registered company rather than in an individual’s name. This is a common method used by non-residents to purchase property in Barbados, offering certain legal, tax, and estate planning advantages.

Deposit
A portion of the purchase price (typically 10%) paid on exchange by the buyer to secure the property once the Agreement for Sale is signed.

Exchange Control Approval
Approval by the Central Bank of Barbados for non-residents making property purchases with foreign currency. This ensures repatriation of funds is allowed when the property is sold.

Freehold
Full ownership of the land and property, without time limit. Most real estate in Barbados is sold as freehold.

Homeowners Association (HOA)
An organization responsible for managing and maintaining common areas and shared amenities in a residential development.

Land Tax
An annual tax levied by the Government of Barbados on all properties. Rates can vary depending on its market value and use.

Leasehold
A property tenure where the buyer owns the building but leases the land from the freeholder for a set number of years.

POA Fees (Property Owners Association Fees)
Recurring fees paid by property owners within a development or resort community. These cover maintenance of common areas, security, landscaping, and shared amenities such as pools, gyms, and clubhouses.

PUP Fees (Proprietors Unit Plan)
Regular charges from utility companies for services such as water, electricity, gas, and internet. In gated communities, some of these may be bundled into a single monthly or quarterly invoice.

Stamp Duty
A government tax on property transfers, currently paid by the vendor at a rate of 1% of the purchase price.

Transfer Tax
A government-imposed tax paid on the transfer of property ownership, typically 2.5% of the sale price, paid by the seller.

Title Deed
The legal document confirming ownership of a property, recorded with the Barbados Land Registry.

Alien Landholding License (ALL)
A government-issued license required for non-citizens to purchase land in Barbados. Typically not required for condos or townhouses within approved developments.