The Buying Process - Local Buyers

Under the Caribbean Single Market and Economy (CSME) a citizen of a CARICOM member state may purchase property in St. Lucia without a landholding license. The CARICOM member states are: Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Surinam, and Trinidad and Tobago. 

There are 3 main stages to your property purchase in St. Lucia: preparation for your search; working with an agent; and closing the deal.

1. Securing Financing

It is advisable to speak to your bank before you start searching for properties with a real estate agent. Financial institutions use a number of factors to determine an applicant’s eligibility for a mortgage. The debt-to-income ratio is calculated by dividing your financial commitments by your gross income. For example, if your monthly debt payments are $1500 and your income is $3000, your debt to income ratio is 50% (i.e. 1500/3000 x 100). Most financial institutions require a debt-to-income ratio of between 40% to 45%. In addition, your mortgage payment should not exceed 32% of your income. Banks may also require a deposit of 10% of the sale price of the property. Interest rates and payment terms vary from bank to bank. Purchasing property is the largest financial decision most people make in their lifetimes. Careful financial planning is key to property ownership. Use the mortgage calculator on our website to help estimate monthly payments. Communicating with your bank is the first critical step when buying real estate in St. Lucia. 

NOTE: Rates for international purchasers vary. All rates should be confirmed directly with your bank. 

2. Working with a Real Estate Agent  

Real estate agents help buyers navigate the St. Lucia real estate market to find the property that best suits them. The first step is understanding the customer’s real estate goals. The agent then uses their market knowledge to match that customer with the best property options. 

3. After you have Found the Right Property

Agreement for Sale 

The Agreement for Sale is a contract between the vendor and the intended purchaser of a property. This is negotiated when the purchaser has agreed to buy and the vendor has agreed to sell. The agreement stipulates the terms of the sale. Important information in the Agreement for Sale includes:

• The total purchase price
• The deposit to be paid by the purchaser 
• The balance to be paid at closing 
• The period for which the property will be taken off the market 
• The closing date 
• The conditions for closing 

Valuation and Inspection 

The purchaser conducts an independent inspection and valuation of the property. This should be done by a qualified professional. Banks require a valuation report for the approval of mortgages. Financial institutions in St. Lucia provide a list of approved professionals who conduct valuations. 

Clearances

To purchase real estate in St. Lucia, the buyer must provide clearance documents to demonstrate that their taxes are up to date. 3 clearances are needed and can be obtained from the relevant government offices:

• Income tax
• Property tax
• NIC 

Stamp Duty 

People purchasing real estate in St Lucia pay a government stamp duty of 2% of the purchase price. This is the same for local and international buyers. 

Deed of sale and Conveyancing

The Deed of Sale is the title document, which gives ownership of a property in St. Lucia. The Deed of Sale also contains any covenants associated with the property. 

For real estate transactions in St. Lucia, the purchaser must have a local attorney to prepare the Deed of Sale. The services of the attorney include:

• Holding deposits in escrow 
• Conducting due diligence on the tile of the property to ensure it is free and clear
• Preparing mortgages where loans are required 
• Preparing the new Deed of Sale
• Receiving the final payment from the purchaser or financial institution and disbursing the funds to the vendor after making any necessary deductions for taxes and commissions.  

Thinking of buying a property? Let us know how we can help.