Choosing Your Real Estate Agent

It is the duty of the real estate agent or valuer that he/she is well informed of current market listings and conditions in order to advise his/her client on the best properties to view that would meet their criteria or the fair market price to list their property.

Real Estate Agents Fees Typically the fee associated with the sale of a property is 5% of the agreed selling price of the property.

This fee may vary slightly from agent to agent but this is the generally accepted fee.

The fee charged for renting a property is generally one month’s rent on a long term rental.

It should be noted that the above fees are subject to 15% VAT.

The fee charged on a short term rental (holiday rental) is generally 15% and is subject to 7.5% VAT.

Buying a Property

Although you may enjoy perusing various web-sites it is not necessary to register with each one, thereby having many companies providing you with the same information.

We have an excellent co-broking network on the island. It can be very time effective and less frustrating for all concerned for you to deal with only one Real Estate Company, that will be able to net-work with all of the other Companies to offer you a wide portfolio.

However, this is totally at your discretion.

Purchasers should be aware of the following:

1. There are no restrictions on the purchase of property in Barbados by persons who are non-citizens or permanent residents.

2. Non-residents must ensure that all funds for the purchase of real estate are derived from external sources.

3. All financial arrangements such as mortgage, purchase price and deposit should be in place prior to entering a binding agreement.

4. Purchasers must obtain the services of a registered local attorney who will have to search the register and establish title to the property prior to the completion of sale.

5. Property passes by conveyance of title, evidence by the recording of the deeds and certified survey plans at the registry of title.

6. Attorney’s fees are approximately 1.5% - 2% of the sale price. Attorney fees are subject to 15% VAT. Both buyer and seller are responsible for their own attorney fees.

7. A 10% deposit is required for payment when signing the purchase agreement. This is a binding contract. The seller’s attorney holds the deposit. Real estate agent fees are subject to 15% VAT.

8. The balance of the sale price must be paid to the seller’s attorney on completion the purchase.

Selling a Property

It is advisable, once you have chosen a real estate agent, that you decide on what type of agreement you are willing to enter into with that agent.

Sole Listing Agreement:

This agreement is used in cases where only one agent is authorized to offer the property for sale, but the owner may sell directly to a purchaser with no obligation to pay commission to the sole agent.

Exclusive Listing Agreement:

This agreement is used in cases where the real estate agent is authorized to sell the property and the vendor must pay the agreed commission to the said agent regardless of whether he sells the property or indeed even gives it away. In both of the above cases the Sole or Exclusive agent can sub-list the property with the other agents on the island in order to give the property the widest possible coverage.

Non- exclusive Listing Agreement:

This agreement is used in cases where the owner appoints more that one listing agent himself. However, all of the listing agents must have the same information and listed price.