A Guide to Investing in Trinidad and Tobago (2011) - Ministry of ...

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eing sold. The purchaser’s attorney or his search clerk prepares what is called an Abstract of Title consisting of a list of documents, facts and events setting out the history of ownership of the property and all dealings with the property over a period of at least twenty (20) years. The first document contained in the abstract is called the Root of Title and thereafter, for good title to be constituted there must be in chronological order, a chain of title that continues from the root to the vendor free from all encumbrances and without any break. Title to property is either freehold or leasehold. In the case of the latter, the term of years can vary from periods of 25 years to 999 years. The R.P.O. system is based on the Torrens System (after Sir Robert Torrens). In Trinidad and Tobago, the R.P.O. system exists side by side with the old law system, and it is not uncommon to find one property consisting of lands held under both systems. All dealings with land or property under the R.P.O. system are endorsed on a document called a Certificate of Title, the original of which is kept in the R.P.O. Registry of the Registrar General’s Department, and the duplicate of which may be withdrawn from the registry and held by the owner of the property or by anyone else (e.g. a bank) who may have an interest in it. Under the R.P.O. system, once a person’s interest in property has been endorsed on the Certificate of Title, that interest is said to be indefeasible, that is, backed by a Land Assurance Fund against which any person who has been fraudulently deprived of his interest in land can claim compensation and to the extent of any shortfall in the fund, the claim is guaranteed by the Government of Trinidad & Tobago as a charge on the Consolidated Fund. The Procedure Involved in the Transfer of Real Estate In order to facilitate the smooth and timely conclusion of a purchase transaction, the parties concerned are required to submit to the attorney preparing the transfer documents copies or the originals of the following 34 A Guide to Investing in Trinidad and Tobago (2011) where applicable. • The Contract for Sale signed by the parties i.e. the Vendor and the Purchaser • The Deed by which the Vendor acquired the property, or the Certificate of Title if the property is held under the R.P.O • Releases of all outstanding mortgages on the property together with statements from the mortgagees as to the amount required to effect the releases and a note on the legal costs incurred in preparing such releases • Current receipts for water and sewerage rates, Water and Sewerage Authority (WASA) Clearance Certificate, Land and Building Taxes, Land Rent and Condominium Management Charges • Planning approval for development, if the property is to be developed by the Vendor before completion of the sale (or has recently been developed) As soon as the relevant documentation is received, the attorneys will engage the services of a Search Clerk to conduct a search of the records at the offices of the Registrar General. These searches will indicate the history of ownership of the property and verify whether the property is subject to any and if so what encumbrances. On average such a search takes between two (2) to three (3) weeks and costs between TT$1,000 and TT$1,500. Whilst the search is in progress, the relevant deeds may be prepared. Once it appears to the attorney that the vendor’s title is in order, the relevant transfer documents may be completed. These documents typically consist of a deed/memorandum whereby ownership in the property will be transferred from the vendor to the purchaser. If the purchaser is taking mortgage financing to purchase the property, the lender’s attorney will also have to verify that the vendor’s title is in order and prepare the document affecting the mortgage for the purchaser to sign. The purchaser is required to engage the services of an attorney to prepare this deed/memorandum on his behalf.
The vendor may either choose to appoint his own attorney to revise the documentation on his behalf, in which case he should notify the other parties involved of the identity of that attorney or alternatively, arrangements can be made for the vendor to attend on the purchaser’s attorney to execute the documents there. The purchaser’s attorney is usually responsible for coordinating the closing arrangements for this transaction (or if the Purchaser is taking mortgage financing, the Lender’s Attorney). This entails verifying that the title is in order and that the relevant deeds, including the release of any existing mortgages on the property, have all been properly executed. When the relevant transfer documents have been signed by all the parties involved, the balance of the purchase price is paid to the vendor and/or his mortgagee and the sale transaction finalised. Transfer Taxes The next stage in the process is the stamping of the documents by the Board of Inland Revenue. Stamp duty payable is as follows: Residential Transfers (including a dwelling house) Where the consideration for the sale or disposal of the property is: Consideration Rate Up to $850,000.00TT 0% Next $400,000.00TT 3% Next $500,000.00TT 5% Over $1,750,000.00TT 7.5% Residential Transfers (land only) Where the consideration for the sale or disposal of the land is: Consideration Rate Up to $450,000.00TT 0% Next $200,000.00TT 2% Next $200,000.00TT 5% Over $850,000.00TT 7% Non-Residential Transfers (Commercial) Non-Residential Transfers refer to commercial properties. The stamp duty payable is: Consideration Rate Up to $300,000.00TT 2% Next $100,000.00TT 5% Over $400,000.00TT 7% Once the appropriate stamp duty has been paid, as certified by an embossed stamp affixed by the Board of Inland Revenue, the original transfer documents are lodged with the Registrar General’s Department and a registered copy will be delivered to the purchaser as proof of his ownership of the land. The registration fee payable for the old law system is typically TT$100.00 and TT$50.00 for the RPO system. Land Use and Development Land use and development is controlled by the Regional Corporations and the Town and Country Planning Division. Permission is required to subdivide land, alter its use, carry on development or construction, repairs or renovations. Plans must be submitted first for the approval of the Town and Country Planning Division. If the plans do not contain any defects that infringe planning and/or building regulations, outline approval is granted subject to the approvals of the other controlling authorities such as the Water and Sewerage Authority (if area is metered), Drainage Division, Ministry of Works and Transport, The Highways Division, the Fire Services, Environmental Management Authority (EMA) and the local Health Authority. Final approval from the Local Authority by the issuance of a Completion Certificate is granted when all the Authorities have certified that the necessary infrastructural works have been put in place and all regulations have been complied with. A Certificate of Environmental Clearance (CEC) is required from the EMA for the clearing, excavating, grading and land filling of an area more than two (2) hectares (approximately 5 acres) during a two (2) year period. In some instances, the EMA may require an A Guide to Investing in Trinidad and Tobago (2011) 35
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Page 5: Reasons To Invest In Trinidad And T
Page 8 and 9: “The direction of the Trinidad an
Page 10 and 11: Central Bank operate from the capit
Page 12 and 13: Seaports The main seaports are loca
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Page 17 and 18: Population, Employment and Labour F
Page 19 and 20: Foreign Ownership The Foreign Inves
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Page 27 and 28: Figure 4: Water Rates in Trinidad a
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Page 31 and 32: nated in six currencies: Trinidad a
Page 33: or buy freehold title. Under the Fo
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Taxable Sources for Corporation Tax
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Territorial Rules An individual is
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filed on acquisition of ownership a
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the contribution is considered an o
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Appendices Association Of Real Esta
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Office Of The Prime Minister #13-15
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96 A Guide to Investing in Trinidad
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Name Honorary Consul Address Latvia
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Embassy of the Republic of Trinidad
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3M Interamerica Inc Alcoa Steamship
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104 A Guide to Investing in Trinida
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