Roatan Investing Real Estate and Investments in Roatan

Some Basic Information to Know When Buying Property in Roatan

Pre & Post Closing Procedure
Spotting the Right Property for you
Negotiation.
Signing of Agreement to Purchase Property
- Deposit of 10% Earnest Money
- Establishing Terms, Conditions and Contingencies
- Setting a Closing Date Signing of Agreement to Purchase Property
Closing- Transfer of Ownership (Signing of Public Instrument) and Disbursement of Payments, Commissions and Closing Costs.
Payment by Attorney of Transfers Tax, Registry Fees, Bar Association Stamps, etc. (72 hours)
Release of Authorized First Copy by the Notary
Issuance of Cadastral Certificate by the Local Municipality
Submission of the Deed to the Registry.
Registration of Deed

In your Real Estate experiences you will find transactions:
From Individuals to Individuals;
From Individuals to Corporations;
From Corporations to Individuals;
From Corporations to Corporations;
Purchase of a Corporation with its Assets.

Title Searches
It is very important that the Closing Attorney you choose checks the current Property Title, as well as the antecedents going back at least 20 years.

*Ordinary Statute of limitation = 10 years (Involves Fair Title and Good Faith)
*Extraordinary Statute of limitation =20 years (No Title and No Good Faith)
Falls and actions against the Government are NOT interrupted by Statute of limitation; ever.

Accessories to Closing
Title Insurance
- First American Title Insurance Company
- Stewart Title

Mortgages
Easements of any sort
- Pedestrian or Vehicle Access
- Water
- Public Utilities

Closing Costs
Transfers Tax = 1.5% of Purchase value
Cadastral Certificate = 1% or 2% (Depending on the Municipality the property is Located. Applicable only to the Bay Islands.)
Registry Fees = US$1.00 per every Thousand.
Bar Association Stamps, Miscellaneous Expenses, Notary’s Fees, Corporations, etc..
Closing Costs, in average, are equivalent to approx. 5% of the transaction’s value.
All Real Estate Transactions involve an Attorney (Notary). Transactions documented in Private documents do NOT have any legal effect before third parties.
All closing documents MUST be recorded at the Registry House. Average time, currently, approx. 3-4 months.
Closing Costs are customarily payable by the Purchaser.


Purchasing Corporations
Purchasing a Corporation along with its asset (s) involves a slightly different procedure than Real Estate Closings.

No Transfer Tax Payment Since there’s no transfer of ownership involved. Property remains in the name of the Corporation.
Instead, a change of Administrator’s) or Board of Directors takes place through a Public Instrument as well.
All Property Documents and Corporate Documents, including BLANK ENDORSED Stock Certificates as allowed by the Honduran Commerce Code.
Same Closing Documents Checklist For Real Estate is Applicable plus ALL Corporate Documents.
Sense of Security –Convention Between the USA & Honduras