Real Estate in the Bay Islands of Honduras
1st In Honduras in first instance the buyer has the right to choose the closing attorney or it can be agreed between the seller and the purchaser. 2nd In Latin America including Honduras only Lawyers that have the special degree of EXEQUATUR NOTARY given by the Supreme Court of the republic of Honduras are Legally Empowered to authorize Real Estate Transactions in Title Deeds which are called Public Instrument Testimony and have according to law to be registered in the Institute of Property. Real Estate Transactions not authorized by a Honduran Lawyer & Exequatur Notary Degree can NOT be registered and therefore do NOT have any legal effect before third parties.
3d Real Estate Transactions in Roatan are the following:a.) From individuals to individuals;
b.) From individuals to Corporations;
c.) From Corporations to individuals;
d.) Form Corporations to Corporations;
e.) Purchase of a Corporation with its Assets.
CLOSING COSTS IN THE BAY ISLANDS OF HONDURASa.) Transfer Taxes paid to the central government = 1.5% of Purchase Value.
b.) Cadastral Certificate paid to the municipality = 1% of Purchase Value.
c.) Registry Fees = US $ 1.00 per every Thousand.
d.) Lawyer & Exequatur Notary Legal Fee & Expenses: Bar Association Stamps, Corporation, Translations, Miscellaneous Expenses.
AVERAGE CLOSING COSTS
a.) Closing Costs, in average, are equivalent to approximately 5% of the transactions value.
b.) Closing Costs are customarily payable by the Purchaser.
TITLE SEARCHThe Honduran Lawyer & Exequatur Notary that handles your closing should always conduct a Property Title Search, as well as the antecedents.
PURCHASING CORPORATIONS THAT HOLD REAL ESTATE IN THE BAY ISLANDSPurchasing a corporation along with its assets involves a different procedure than Real Estate Closings:
a.) No Transfer Tax Payment. Since there is no transfer of land ownership involved. Property remains in the name of the corporation.
b.) Instead a change of Administrator or Board of Director takes place.
c.) Buyer of the corporation receives the: Registered Original Incorporation Charter, Registered Original Title Deed of the Property, Registered Original General Assembly of Share Holders with the appointment of the new administrator or new board of directors.
LEGAL SECURITY: Convention between the United States of America & Honduras. Congress Decree No 207—98, published in the Official Gazette on November 28 of the year 2000 (vol: 29,339) Bilateral Treaty USA---HONDURAS, relative to reciprocal Sponsorship and Protection of Investments. MAIN TOPIC: No Expropriations; unless for Public Interest which is followed by the corresponding indemnification.
This presentation is a General Overview of Real Estate transactions in general. All transactions regarding real estate in the Bay Islands of Honduras have their own particular level of customization to them. For more information please contact:
Lawyer & Exequatur Notary Alexander Villela F: