Purchase Procedure

1. Making an Offer and Agreement of Sale:

The buyer makes an offer to purchase the land, and the seller accepts. A sales agreement is drafted, outlining the terms of the sale, including the price, payment terms, and any other conditions.​

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2. Depositing Funds Into Escrow:

After the Agreement of Sale is signed by both parties, the next step involves securing the down payment. For added security, it’s strongly recommended to use an escrow account, which can be managed by a Belize attorney or a Closing Company. An escrow account ensures that the funds are held safely until all conditions are met for the closing.

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For cash transactions, the entire purchase price is typically held in escrow. In financing situations, the down payment—usually between 20% and 30%—is placed in escrow. This provides protection to both the buyer and the seller throughout the process. Most transactions in Belize are conducted in U.S. dollars, and the escrow accounts are often held with U.S. banks or intermediaries to ensure smooth processing.

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3. Conducting Due Diligence:​

One of the key components of a successful property purchase in Belize is conducting proper due diligence. This typically involves a thorough title search to confirm the legal ownership of the property and ensure there are no outstanding liens or encumbrances. Your Attorney or Closing Company will manage this step, ensuring that the property can be transferred without legal complications.

 

Additionally, the Closing Company will review the Agreement of Sale to ensure that it complies with Belizean law and that the terms are clearly defined and legally enforceable.

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4. Paying the Transfer Tax:

​In Belize, the transfer tax is a critical part of the closing process. The transfer tax is set at 8% of the property’s total sale price, minus a $10,000 exemption. This tax is usually the responsibility of the buyer, although it can be negotiated as part of the overall deal. It’s important to ensure that the tax is paid promptly, as the Land’s Department will not process the property transfer without proof of payment.

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5. Closing the Deal and Transferring Ownership:

Once all documents are reviewed, the due diligence is complete, and the transfer tax is paid, the final step is closing the transaction. Both the buyer and the seller will sign the transfer documents, which are then notarized. The Closing Company will submit these signed documents to the Land’s Department for final approval.

 

Once the documents are processed, the funds are released from escrow to the seller. At this point, the buyer receives legal ownership of the property. If the purchase is financed, the seller may hold a note on the property, much like a mortgage. In cash sales, the buyer receives all original documentation, including the title deeds and transfer documents.

 

While some buyers and sellers choose to complete the closing in person, it is still possible to handle the entire process without being physically present in Belize. Your Belize Real Estate agent/Seller and Closing Company will ensure that everything is handled efficiently and legally.

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6. Taking Legal Possession:

Upon successful closing, the buyer takes legal possession of the property. This marks the official transfer of ownership, and the buyer’s name will be recorded in the official Land Registry. 

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It’s important to remember that the buyer’s legal rights to the property in Belize are protected by the country’s fee-simple title system, which gives foreign buyers the same ownership rights as locals.

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7. Closing Costs and Timeline:

The timeline for closing on property in Belize generally ranges from 30 to 90 days, depending on the complexity of the transaction. Closing costs typically range from 1% to 1.5% of the total sale price, covering legal fees, and other administrative costs associated with the transaction.

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When using an escrow account or Closing Company, fees for these services will be added to the closing costs. It is also common for buyers to cover these costs, but they may be negotiated as part of the overall agreement.