Belize's Relevant Property Law

Belize's Land Laws are mostly based on 19th-century English and Common Law statutes. There are numerous similarities between the Law of Property Act, Chapter 190 and the Real Property Act 1925 of England. A few more pertinent statutes are Chapter 194 of the 1977 Registered Land Act. In Belize, all land transactions are governed by this Act. You can click here to get in touch with a handful of the lawyers we work with, or visit www.belizelaw.org to learn all of Belize's laws.

In Belize, there are two kinds of land categories. They are declared land and undeclared land. Any transfers or transactions involving undeclared land in Belize must be registered with the Titles Registry. Conversely, all transactions pertaining to Declared land must be recorded at the Land Registry. The addresses of both registry locations are in Belmopan (Cayo District).

In addition, the Law of Property Act permits the purchase of property in cases where a person has lived on a piece of land for more than 30 years. It is not enough to just settle; one must hold the land continuously and undisturbed for thirty years. Should the Supreme Court determine that possession is proven, They may provide the person making the claim a declaration of title about the aforementioned easement, right, or privilege. Although there aren't many claims like this, it's still helpful to know that they can happen. Hence, a thorough property/title search is necessary.

LAND TRANSFER IN BELIZE (Summary)

Property purchasers can take title to freehold property in Belize in one of three different ways. They are: Deed of Conveyance; Transfer of Certificate, and Land Certificate.

Deed of Conveyance:
The oldest form of title ownership is a Deed of conveyance. Ownership by way of conveyance is a registered right to ownership of property. Ownership by conveyance can be converted to a Certificate of Title via an application for first registration. Any subsequent buyer is issued a Transfer Certificate of Title. It should be noted, however, that a Deed of Conveyance is a valid legal title once an attorney has confirmed that the seller has good title to the property.

Transfer Certificate:
This document serves as the legal title to a certain piece of property. This is a safe way to own property. Transferring title using a Transfer Certificate of Title is more expensive and time-consuming than doing so via a Deed of Conveyance.

Land Certificate:

Applying to acquisitions of real estate in newly established or specifically designated locations, a Land Certificate is an absolute title. Under the Registered Land Act of 1987, the government is currently reregistering all freehold holdings in order to eventually create a uniform system of land ownership across the country. However, as some sections need to be resurveyed, this will take some time.

The Exercise in Conveyance of Transfer

A.) The vendor and purchaser, or one of the parties and a Real Estate agent, initiate the Conveyance or Transfer process. In its capacity as a real estate agent, BP&CLDC speaks on behalf of the vendor and the buyer and ensures their satisfaction.

B.) The Sale Agreement and Purchase Agreement Contracts are created as the initial step in the transfer procedure. The fundamental conditions for the transfer of the property are outlined in these contracts. A transfer or purchase may not always require this agreement, but it does help to ensure and speed up the process. Please take note that the property is not transferred by these contracts, which are not conveyance agreements.

C.) At the buyers' consent, BP&CLD Corp. will then research the property thoroughly (property search) to determine owners and any encumbrances. To accomplish this, one of our agents will travel to Belmopan (to the Lands Titles Office) and search the property records. We will be able to learn everything there is to know about the property that is being transferred, including any liens or encumbrances on the property such as unpaid taxes, mortgages or historical claims against the land. We will also be able to find out through this search if the property up for sale is subject to any restrictive covenants or zoning ordinances. The searcher must go through every volume and folio of the title to ensure that it reflects appropriately, which is very time-consuming and may take weeks. Additionally we visit the community and do an investigation to see if any claims to ownership exist. For every property, we advise the buyer to perform a property search.

E.) In order to save time and money, it is recommended to hire a local attorney. A single attorney may create and submit the Transfer paperwork on behalf of both the vendor and the buyer. The attorney's fee can be split between the buyer and seller or paid for by either party depending on the agreed upon contract. Typically in Belize, the buyer bares these coists. Buyers may also have the documents reviewed by their own private attorney at their own expense.

F.) The following information is laid forth in the Purchase & Sales Agreement Form:

- - The parties' names, addresses, and occupations.
  - The way that multiple buyers will own the land as tenants in common or joint tenants if there are multiple buyers.
  - Land description, measurements, location, and Volume & Folio numbers of the Title (exclusively registered land).
  - Purchase price needs to be stated both verbally and numerically.
  - The percentage or total amount of the deposit that the buyer must provide. (Typically, 10%)
  - On the day that the transaction is anticipated to be finished, the balance is payable or a payment plan agreed upon.
If the buyer doesn't finish the purchase by the deadline specified in the contract, he can lose his deposit. For example, if two provisions are to be introduced, they must be properly and carefully crafted by an attorney to avoid conflict.

The preparation, execution, lodging, and finalization of the Transfer paperwork shall fall under the purview of BPCLDC.
Note: For properties that are raw land, undeveloped, and unregistered in undeclared area, it may take up to 3 years to complete but can be expedited by local lawyers at additional cost. However, as long as documents have been drafted and signed by both the vendor and the buyer and notarized by a Justice of the Peace or attorney, it becomes a point of no return. This Sales Agreement contract requires a payment plan, including all expense needed to complete the sale. Typically, four payments made every 3 months. However, this is negotiated by all parties.
This process takes longer than the average titled property sale and is recommended for buyers willing to settle in Belize or looking for a longer term payment plan or 'lease to buy' option which allows one to purchase land at far below tiltled property prices. At completion, you will obtain a free simple property title which in return you can resell for a greater price or develop to your hearts content. It is important to note that once the purchase agreement has been arranged, signed into contract and while waiting for the title, the buyer has legal "ownership" and can commence development. However, the tltle will not be processed until full payment is made so it is recommended to pay as propmptly as you can afford. The only way the land can be taken away from the buyer is if they stop making payments and it goes into a "foreclosure" status in which case BPCLDC will assit in reselling it to avoid loss. Please see our refund policy.

The Documents of Transfer

Depending on the specifics of the property being bought, including whether it's a declared or undeclared land lot, several pieces of transfer documentation are required. These records consist of the following: (a) Land Certificate; (b) Transfer Certificate; (c) Deed of Conveyance; and (d) First Certificate of Title.

The appropriate approvals and checks will be obtained by our company in order to complete the property transfer.

The following typically goes along with the transfer:

1.) The first title to the land.

2.) Release from a charge or from a mortgage.

3.) Stamp duty and recording/registration fees.

When required, our organization will also see to it that a Belizean Justice of the Peace or attorney signs and stamps the documents as required. Note: For the transfer to occur, the purchasers do not need to be present in Belize.

Cost

There are certain basic minimum costs that must be met by both parties when it comes to property transfers in Belize. These are: Stamp Duty, Recording of Registration Fees, property Taxes, and the Real Estate Company Expense. The property taxes are to be incurred by the sellers, while typically, the other fees are to be paid by the purchaser. Most of the costs incurred by the purchaser apply to property recordings, registration, leases, mortgages, and miscellaneous charges.

Other services that may bear additional charges based on the request of the purchaser or seller include: property search which includes title and other form of ownership search, valuation report, and the discharge of an existing mortgage, or the registration of new mortgage, surveys, land clearing, transportation etc.

Important to note when investing in real estate in Belize

Belize, formerly known as British Honduras, achieved independence from the United Kingdom on September 21, 1981

The legal system of Belize is based on English Common Law and the country is a member of the Commonwealth of Nations.

Typical closing procedures and costs include:

It is not required to have title insurance.
There is no tax on capital gains.
At the moment of title transfer, the declared purchase price of the property is subject to a government stamp duty; 5 % of the Declared Property Value for Belizean and CARRICOM nationals and 8 % for all other nationalities. The 1st $20,000.00BZD is exempt.
$15 for the title document is the registration fee.
Offer to Purchase (Buyer)
Contract For Sale Transaction (Seller)
Title Search (Buyer)
Preparation of Transfer Documents (Seller)
Closing Transfer of Funds from (Buyer to Seller)
Recording/filing (Buyer)
Payment of Fees/Stamp Duty (Buyer)
Follow up with the Lands Department (Buyer)
The Buyer is responsible for the title search and for the property transfer and any other related costs. A lawyer normally charges 2% of the selling price with a minimum charge and other expenses but Buyers have the option of also using a closing agent
(you may use our recommended closing agent or choose your own).
Note that when purchasing real estate from a resident that you need to obtain Central Bank of Belize prior notice. The attorney or closing agent will facilitate this.
GST 12.5% General Sales Tax may be applicable on developed properties
There are no Capital Gains Tax in Belize!
One possible option to avoid Stamp duty tax is to open an International Business Company (IBC). Ask us how.

Page updated

Google Sites

Report abuse