REAL ESTATE

[Acquisition of real estate by foreign nationals] [Contracts for sale and purchase of land]
[Land title systems] [Transfer of registered Land] [Transfer of land held by transport]
[Mortgages] [Advertising mortgages] [Transfer duties & taxes]

Acquisition of real estate by foreign nationals

There is no prohibition on the acquisition of real estate in Guyana by foreign nationals.

However, foreign companies registered under the Companies Act 1991 may hold property in Guyana only by licence of the President.

Contracts for sale and purchase of land

Agreements for the sale of land must be in writing and signed by both the vendor and the purchaser of the land. The agreement should contain, at a minimum, the names and addresses of the parties, the agreed purchase price and the location and description of the property. Agreements of Sale are usually prepared by an Attorney-at-law.

A real estate agent may be retained to secure a purchaser for a property. In such an event the agent is paid, by the owner of the property, a percentage of the purchase price set out in the Agreement as a commission.

A contract for the sale and purchase of real property may be enforced by an action for specific performance of the contract on the terms set out therein.

Land title systems

Immovable/ real property in Guyana is held under one of two forms of title:

Transport- This is governed by the Deeds Registry Act

Registered title/ Certificate of Title- Land Registry Act

Transfer of registered land

The owner of registered land may transfer that land by an instrument of transfer. Upon the registration of that instrument the interest of the transferor becomes vested in the transferee. Every agreement of transfer must be signed by the transferee and the transferor.

Registered land is held under a Certificate of Title and the owner of such land is known as the registered proprietor.

A register containing Certificates of Title to registered land is maintained by the Registrar of Deeds and all encumbrances on the property are annotated on that Certificate.

At the request of any person a search may be carried out by the Registrar for information regarding the property, its owner or any encumbrances thereon.

Transfer of land held by transport

The owner of transported land has as evidence of his title a document known as a ‘Transport’. The original Transports are kept in volumes by the Registrar of Deeds. All encumbrances on the property are endorsed on the face of the Transport.

Property held by Transport can only be passed before the court. The transfer of ownership of transported land, referred to as ‘passing’ transport, requires the services of an attorney-at-law who prepares, signs and files all the necessary documentation.

Transfer duties, taxes and attorney fees

The fees and charges payable on the passing of transport or the transfer of title to land in Guyana are as follows:

Fees to the Deeds Registry- these are fixed at 2.5% of the value of the property and comprise 2% for stamp duties and .5% for conveyancing.

Fees to the Inland revenue Department- theses are fixed at 20% of the profit made on the sale (Capital Gains Tax) that is, 20% of the difference between the value of the property as at 1991 and its current market value, exclusive of charges to surveyors and attorneys. If the property was owned by the vendor for more than 25 years prior to the sale then no capital gains tax is payable.

Fees to the attorney-at-law- these are fixed by law at 1% of the value of the property.

Before property is transferred proof must be provided that all rates and taxes are paid up to date and that the vendor of the property has paid his income taxes. This is evidenced by the issue of a Certificate of Compliance by the Inland Revenue Department and a certificate from the City Council.

Mortgages

Mortgages in Guyana are subject to Roman-Dutch law and mortgages secured by immovable/ real property must be executed and cancelled before the court.

Advertising Mortgages and Transports:

An intended mortgage or transport must be advertised in the Official Gazette at least six weeks before it is executed or ‘passed’. Advertisement in the Official Gazette constitutes notice to the general public of the intended transaction and facilitates the entering, by persons with an interest in the property or creditors of the vendor, of an opposition to the disposition of the property.


Disclaimer: The information contained in this website is not intended to replace the advice of an attorney-at-law. For further information or legal advice we invite you to contact our office.