Purchasing Propery in the Turks & Caicos
The Turks and Caicos can be a bit challenging for the foreign buyer. While the paperwork is straightforward, the ownership options are varied. It is recommended to consult a local TCI attorney prior to entering any agreement to review your options, particularly whether you will be taking title to property in your name directly or the name of company or trust. The attorney is the best person to advise you on the potential tax benefits and trust protections from offshore company or trust formation.
The first step in the purchase process is for a preliminary heads of agreement, or Offer Form to be signed by both parties. This documnet will state the name of the parties, the seller, buyer, the legal description of the property, the purchase price, terms, conditions, closing date and will state the length of time the offer will remain open. The seller at this point can accept, reject or counter the offer with price or terms/conditions that are acceptable. Upon signature, the Seller is committed to selling the property.
A security deposit of 10 percent of the Sale / Purchase agreement showing good faith and legal consideration is usually required at this time..
The seller’s attorney will new draft a formal agreement for sale and purchase and will produce a copy of the registered title for the buyer’s attorney review. After the two attorneys are satisfied with the title documents and the terms and conditions of the formal agreement, the seller and buyer will sign the formal agreement and the earnest money is then transferred to the seller’s attorney who will hold the funds in trust until the transaction is closed. The conveyance process is lengthily and may take as long as 6 to 8 weeks.
This extended period provides ample time to have all financing is in place by the time that the official Deeds of Sale/Purchase and Transfer of Property are signed.
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