Buying costs are moderate in the US Virgin Islands
June 07, 2013
How high are realtors' and lawyers' fees in Us. Virgin Is.? What about other property purchase costs?
|Recording Fees||0.10% - 0.12%||buyer|
|Legal Fees||1.00% - 2.00%
1.00% - 2.00%
|Transfer Tax||2.00% - 3.50%||seller|
|Real Estate Agent's Commission||6.00% - 7.00%||seller|
|Costs paid by buyer||1.10% - 2.12%|
|Costs paid by seller||9.00% - 12.50%|
|ROUNDTRIP TRANSACTION COSTS||10.10% - 14.62%|
| See Footnotes
Source: Global Property Guide
How difficult is the property purchase process in US Virgin Is.?
There are no restrictions on foreign property ownership. Owning a property in the US Virgin Islands is "fee simple".
When the property has been decided on and negotiated, hire a lawyer to graft the purchase contract. This states the price, deposit, and terms of transaction. Upon signing, and earnest money deposit of US$1,000 is paid, which is then raised to 10% - 25% of the property value within ten days.
The rest of the process will be handled by the lawyer. A title search is recommended. It is also an option to hire a professional inspector to check if the property is in good condition.
Closing usually involves meeting with the seller when the final payment is made and the deed transferred to your name. Deeds are recorded and filed at the Recorder of Deeds. Ownership of property in the US Virgin Islands has the same guarantees and constitutional protections as any other state within the United States.
Footnotes to Transaction Costs Table
Legal fees are negotiable with each party paying for their own lawyers. Some lawyers charge on a per hour basis (around US$150 to US$250 per hour for sale conveyance), others as a percent of property value (around 1%) while others charge a fixed fee (US$1,000 to US$2,000).
Government Transfer Tax or Stamp Duty:
Transfer Tax is paid as evidence of conveyance of real property. It can be paid either buyer or seller, but is typically paid by the seller. The Transfer Tax is set according to the value of the property, and determined as follows:
|PROPERTY VALUE, US$||TAX RATE|
|Up to US$350,000||2%|
|US$350,001 - US$1,000,000||2.5%|
|US$1,000,001 - US$5,000,000||3%|