You are ready to sell property in Barbados, now what? First off all, it's best to choose a Real Estate Agent to guide you accordingly when it comes to how best you should present your property and represent your interest during the negotiation process.
The standard fee charged by a real estate agent for selling property is 5%+17.5%VAT of the final sale price. This may vary slightly for a multi-unit development or a higher priced property. Also for rental property it is one month's rent plus 17.5%VAT.
Once you have selected the agent that you would like to work with it is best to sign a listing agreement, whether it be exclusive or non-exclusive, in order to get the ball rolling. If choosing a non-exclusive agreement and opting to go with multiple agents, it is best to ensure that all agents have the same information and same price.
The Seller will incur the following expenses:
Property Transfer Tax
- If land only - 2.5% of the purchase price
- If house and land - first $125,000 exempt , 2.5% on the excess
- Stamp Duty - 1% of the purchase price
- Land Tax - this amount will vary dependent on the value of the property at time of the transaction
- Land Surveyor's Fee - Approximately Bds$1500 but may vary
- Real Estate Commission - 5%+17.5%VAT
- Legal Fees - 1-3% on a sliding scale
- Out-of-Pocket Expenses - $300
Legal Fees are legislated as follows:
- Up to $25,000 - $750
- On the next $75,000 - 2%
- On the next $100,000 - 1.5%
- On the next $300,000 - 1.25%
- Thereafter - 1%
VAT of 17.5% is payable on legal fees.