TPR Buyers Guide

A note about Condominiums
We feel it is important to mention the blossoming condominium market as this plays a large part in Providenciales real estate activity, and is a comparatively new and expanding area of property law in TCI. As such, it is worthy of specific comment. Again, it is our view that independent legal advice is equally important when purchasing a condominium. Basically, condominium developments in the Turks and Caicos Islands have the same characteristics as condominiums in the United States and elsewhere - e.g. the owner becomes a member of the general owner's association (which is known as the Strata Corporation), of the development concerned. Each Strata Corporation will have registered by-laws, which are its constitution and which determine how the development is run. The Strata Corporation is usually run by an executive committee comprised of owners, elected by the general membership. Ownership of a condominium generally involves periodic payment of Strata Corporation dues to cover maintenance of common areas, building insurance and other expenses.

Purchasing Pointers

• Identify your motivations. Being clear on your objectives will save you a great deal of time and narrow your search, for example: Are you looking for a second home, a retirement home, a new business or are you speculating in a rising market? Are you interested in buying a developed property or building?
   
• Assess what you can realistically afford then research within that price range.
   
• Talk to people with a background in real estate (either a real estate agent or attorney) and residents to get a feel for property values, similar sales and other available properties.
   
• Retain an attorney as soon as you make a decision to purchase a property (or put down a "deposit" or "commitment fee") to carry out the standard searches against title and ensure compliance with Planning Regulations, advise on access ways, easements, encumbrances, etc. Take advice at the front end on how best to take title, with regard in particular to estate planning considerations.
   
• Obtain seller financing if possible rather than bank financing.
   
• Have the Vendor show you the boundary markers of the property—it has become common practice in the TCI to have the vendor provide a surveyor's certificate on closing confirming that the boundary markers are in place. If you are considering a house examine it as closely as you can, from the foundations to the roof. Consider having a structural engineer look over it with you.
   
• Have the Vendor provide you with a list of any personal property, furniture, fixtures and fittings which are being sold with the real estate, together with the Vendor's assessment of the value of each item. This will help to avoid misunderstandings and may provide a means of legitimately reducing Stamp Duty on the transfer.
   
• Have your attorney look at the insurance policy in place on any developed property to protect your position before and after closing.
   
• Be prepared to walk away from any transaction and move on to the next if you are not comfortable with it.
   
• Where relevant, seek advice in relation to residency, work permits, business licensing and National Insurance.