The Real Estate Sale Process in Barbados: A Step-by-Step Guide

Buying a home in Barbados is an exciting journey that follows a well-established process to ensure a smooth and secure transaction for both parties.
Whether you’re a first-time home buyer or seasoned investor. It’s important to understand the key stages involved.
The property sale process in Barbados typically takes 3 to 6 months from the time an offer is accepted to the completion or “closing” of the sale. This timeline can vary depending on factors like how quickly both parties’ attorneys can complete due diligence, the complexity of the transaction, and how efficiently the necessary documents are prepared and signed. Delays can sometimes occur if there are title issues or if the buyer is securing their financing. In a nutshell, follow our guide below to better understand this process.

1. Find a Qualified Agent

Choosing the right real estate agent in Barbados is one of the most important steps in the home-buying process, especially if you’re unfamiliar with the local market. The right real estate agent is important because they can offer expert market knowledge, negotiate the best deals on your behalf, handle necessary paperwork, and advocate for your best interests throughout the buying or selling process. The right agent can save you time, money, and stress.

2. Find a Property

Whether you’re searching for a residential home, commercial space, or a profitable investment opportunity, the first step is to clearly define your needs and budget. Your real estate agent will then use their market knowledge and access to listings to identify suitable properties that match your criteria. They’ll arrange viewings, provide insight into locations, and offer advice on potential value and return on investment. This personalized approach helps streamline the search process and ensures you’re only considering properties that truly align with your lifestyle or business goals.

3. Make an Offer

Once you’ve found the right property, your agent will help you make a formal written offer. Negotiation may follow until both parties agree on a sale price. At which time, you’ll be asked to sign a formal offer letter to confirm the basic parameters of your
now pending sale. Your agent will also provide you with other necessary documents that may be required by your financial institution or lender.

4. Hire an Attorney

In Barbados, both buyer and seller are legally required to use an attorney to see the sale process through to completion. Your attorney will:

•  Conduct title searches
•  Check for encumbrances (e.g. liens, unpaid land taxes)
•  Draft and review the Sale Agreement

5. Sign the Sale Agreement

Once vetted, both parties sign the Sale Agreement. At this point, the buyer typically pays a 10% deposit, which is held in escrow by the seller’s attorney.

6. Due Diligence Period

This period lasts about 2–4 months. During this time:

•  Your attorney completes all checks
•  Financing (if needed) is finalized
•  Necessary permissions if required are obtained

7. Completion & Transfer of Title

Once all conditions are satisfied, the balance (90%) is paid, and the property is officially transferred to the buyer. The Deed of Conveyance is signed, and your
attorney will register the title deeds with the Land Registry.

Foreign buyers are welcome to purchase property in Barbados, and there are no restrictions on non-residents owning real estate on the island. However, to ensure a smooth repatriation of funds in the future—especially if the property is later sold—it is highly recommended (and generally required) that all funds brought into Barbados for the purchase be registered with the Central Bank of Barbados.

This process involves the buyer’s local attorney submitting a declaration of the foreign currency funds used to complete the purchase. Once registered, this guarantees the buyer the right to repatriate the original investment and any subsequent profits, such as rental income or proceeds from a future sale, without
complications.

When selling property in Barbados, several costs must be taken into account, most of which are the responsibility of the seller. Stamp Duty, set at 1% of the sale price, is paid by the seller, as is the Property Transfer Tax, which is 2.5% on the portion of the sale price exceeding BBD $150,000. Both of these are calculated based on the higher of the market value or the agreed selling price. Legal fees are also a necessary part of the transaction and typically range from 1% to 2% of the sale price, plus VAT, with each party (buyer and seller) covering their own attorney’s costs. Additionally, sellers must ensure that all land tax obligations on the property are fully paid and up to date before the sale can be completed, as outstanding taxes can delay or complicate the transaction