You made an Offer now what?
You have found your dream home or plot of land and have advised your agent of the amount you wish to offer. Next, your agent will submit the offer to the vendor who can accept, counter-offer (inclusive of any relevant conditions of agreement) or refuse if it does not meet his/her expectations. Once a final price is agreed, your agent will prepare an Offer and Acceptance for signature by both parties (purchaser and vendor).
The offer letter generally states the name of the purchaser, the purchaser’s address and the address of the property being sold as well as the agreed sale price. In some cases, if the property being purchased is within a development, then a reservation agreement and payment of a reservation deposit may be applicable.
After the Offer Form is fully executed, your agent will send a copy of this document along with an attorney instruction letter to the Vendor’s attorney with copy to the purchaser’s attorney. The attorney letter introduces the purchaser, provides details on the property being sold and instructs the said attorney to prepare the Sale Agreement and send same to the purchaser’s attorney. The Sale Agreement usually states a timeframe in which the deposit is to be paid.
If you are obtaining financing, you will provide the financial institution with a copy of the signed offer document so they are aware of the property you intend to purchase, the owner’s intent to sell and the agreed price. They in turn will give you a list of what they require from you to process your application. They may also provide you a list of valuers to choose from to have the property valued. This step is not applicable if you are purchasing with cash.
Choose an Attorney
You may already have a relationship with an attorney you intend to use to represent you in the purchase. If you don’t, your agent can provide you with a list of attorneys to choose from. Your attorney will review the Sale Agreement provided by the Vendor’s attorney and carry out the relevant title searches. Once the final form of agreement is finalised/agreed by both attorneys, you will be required to sign the Sale Agreement and make a 10% deposit towards the purchase. If you are bringing funds into the island, your attorney will advise you on the process of registering funds with the Central Bank of Barbados and will also handle this process on your behalf. In addition, the attorney can also assist and guide you, should you choose to purchase as an offshore company.
Completion of the sale
Prior to closing the transaction, your attorney will make arrangements for your landmarks to be pointed out to you by a land surveyor. At the point of signing the conveyance, the balance of the purchase is also payable at this time.
If you have any questions about the offer and sales process please give me a call me on 246.836.4313 or email Annalisa.firstname.lastname@example.org. I will be happy to assist!