Transaction costs range from high to very high in Guadeloupe
September 11, 2006
How high are realtors’ and lawyers’ fees in Guadeloupe? What about other property purchase costs?
|Notary’s Fees||1% (+19.6% VAT)||buyer|
|Mortgage Land-charge Registration Fee||0.55%||buyer|
|Land Registrar’s Fee||0.1%||buyer|
|Realtor’s Fee||1.5% - 4%
1.5% - 4%
|Costs paid by buyer||8.236% – 10.736%|
|Costs paid by seller||1.5% – 4%|
|ROUNDTRIP TRANSACTION COSTS||9.736% – 14.736%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in Guadeloupe?
Once the parties have agreed on the price and what the sale relates to, the parties will be required to sign a preliminary agreement. The preliminary agreement usually takes the form of (in the North) an option (promesse unilatérale de vente), with a 5% to 10% penalty if the option is not exercised, usually secured by a deposit held by the notaire. There is a 7-day cooling-off period, within which the buyer can change his mind.
If a mortgage is being sought, the compromise de vente must contain a clause confirming that mortgage financing is being sought, then, if the mortgage is declined, the purchaser will not lose his deposit.
Once preliminary contracts have been exchanged, there are pre-completion searches: land registry searches, local authority searches, planning permission searches, etc. If the dwelling has been sold by a “property professional” or is less than ten years old, the seller has a statutory liability to all future owners within the ten year period for defects.
On completion, the purchaser and vendor sign the Acte authentique de vente at the Notaire’s office. The notaire will see that the account is settled, will accept his fee, and land registry fees, if they are not included in the notaire’s fees.
There is an additional 15.4% VAT on buildings less than five years old.
Footnotes to Transaction Costs Table
The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.
Guadeloupe use Euro. Exchange rate is at US$1=€0.79529 as of 21st July 2006.