More and more the Caribbean Coast of Honduras has becomed a tourist
Destination and investing place for the international market,
from the humble beginings of the big companies that once started
here mainly to plant the beaches and fields of bananas and coconuts
for the international market setled here in La Ceiba and the Bay
Islands. Now the investment comes in another ways, and the return
rate is just incredible, beachfront properties, communities, riverfront,
mountain and others of great atraction have raised in value at
least 50% per year. If you buy a property just at the right time
(just before a development is being made) you could get a rate
of more than 100% return in value in just one year and the potencials
are growing given that we are not talking only of Sol y Playa
or Sun and Beach, but, also of cultural, ethnic, business, urban,
rural, mountain, botanical tourism from all directions, Central
America is looking more and more to the North Coast of Honduras
and the investment has been overwhelming, not to mention the investment
made by Canadians, Europeans and Americans in the last two or
three years. The place on the International Market of the Bay
Islands has given an extra push for others to look over the mainland
or North Coast of Honduras, especially at the La Ceiba Area and
around, where you can be from a 15 minutes fly from any of the
Bay Islands and only 1 or 2 hours from International airports
like Miami, Houston, Atlanta or Los Angeles given all the atraction
that La Ceiba has (rivers, mountain, beach, theathers, hospitals,
golf course, etc). So a long story to be short this is a win-win
situation as investment, there is practicly no risk if you consult
with a professional Realtor (Honduras Real Estate) who knows and
explain the insides of the business and that is fact one of the
fastest Developers in the area as well as Investors.
Title Insurance
Unlike in the U.S.A., the responsability of the transfer of Deed
in Honduras belongs to the Notario (Certified by the goverment
attorney), but, the two biggest title insurance companies have
representatives here in La Ceiba (Steward Title Insurance and
First American Title Insurance) for most of the properties in
the coast if you want that service or you can used the Title Report
by a certified First American Attorney of your choice.
Process of Purchase
Can foreigners own land in Honduras ?
Yes. You may own up to 3,000 square meters (approximately 3/4
acre) in your own name. Larger parcels may be purchased by forming
a Honduran corporation, Since year 1990 The Honduran Law granted
foreigners rights to purchase property on the Bay Islands and
along de north coast of Honduras , within the first 40 kilometer
from the beach line.
First legal step
Buyer should have an Escrow Agent (attorney) to do the Title Investigations
in the land Registry if property measurements and boundaries is
properly registered and free and clear of all defects, encumbrances,
liens, leases, easements, rights of way, covenants restrictions,
pending lawsuits, pending labor lawsuits, real state taxes,
Second legal step
Buyer should have an Escrow Agent to do the Title Investigations
at Municipal if property is recorded in the Catastral Office and
that measurements and boundaries are correct,
Third legal step
Buyer should have an Escrow Agent to represent him and to sign
the Offer to Purchase (Purchase Agreement), previously money have
to be wire to Escrow Agent.
Fourth legal Step.
Escrow Agent and Lawyer shall execute an instrument (Bill of sale)
for the Property in the Protocol of a Honduran Notary conveying
title to the Property in accordance with Seller’s’
Warranty on the day of Closing. The registration of the instrument
(Bill of sale) and transfer of title to the Property and release
of the registered document from the Registry of city and Mercantile
Republic of Honduras may require at least twenty one (21) days
after Closing or more.
After documents is back from Registry of Property, Escrow Agent
and lawyer delivers documents (Bill of Sale) to Purchaser fully
recorded, courier may be necessary, full address and phone numbers
will be needed to dispatch documents.
Closing Costs. The legal expense for preparation
of the instrument (Bill of Sale) for the Property, the transfer
tax of 1.5% and recording fees, (registry and stamps, etc.) 0.2%,
of the Purchase Price for this transaction or of the municipal
valuation of the property, which ever is better for your convenience
(lower) shall be paid by the Purchaser at Closing as well as the
attorney’s fee 3.00%, but it can be negotiable.
The instrument (Bill of sale) shall be prepared by the Purchaser’s
attorney (“Attorney”) or the broker, subject to the
reasonable review by the Seller. The Attorney will be requested
to deliver a draft of the instrument (Bill of sale) to Broker,
Purchaser and Seller at least one (1) business days prior to Closing.
Remember, feel free to ask or consult about any concern you have,
our clients testify for us and are our guarantee, we take with
responsability your investment, most of our clients, over 70%
have purchased at least two properties from us. |
