Buying Honduras real estate is a comparatively much simpler process, as long as you use professional brokers and attorneys in your real estate deals. For that reason, there is only one way how to buy real estate in Honduras safely, no shortcuts in this process.
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 the year 1990, The Honduran Law granted foreigners rights to purchase property on the Bay Islands and along the north coast of Honduras (mainland), within the first 40 kilometers from the beach line.
- Get a professional broker, one that knows property value, areas, added value in the years to come and whose properties have been checked. Be careful with bargains and avoid to do it yourself with the help of an attorney without a broker, your broker shall give you a tour and tell you where are the good areas and why as well and what to avoid.
- Once the decision on which property is done, the Promise of Purchase or Purchase Agreement shall be prepared by the broker stating the property registration book, seller, buyer, broker, escrow account of broker, due diligence, closing day, down payment, wire transfer info etc., subject to the reasonable review by the Seller and Buyer.
- Get an attorney that will represent you, if you do not have one, ask your broker to recommend you one to do the title investigation and notary issue of the preliminary deed to check for a free and clear of all defects, encumbrances, liens, leases, easements, rights of way, covenants restrictions, pending lawsuits, pending labor lawsuits, real estate taxes, etc. If the documents are good, He and your broker shall be working to get the documents of both parties ready for closing.
- 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 shall be paid by the Purchaser at Closing as well as the attorney’s fee 3.00%, you can always negotiate the fee.
- Once the money for the title transfer has been wired to the escrow account, buyer´s attorney 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 and release of the registered document from the Registry of the city may require three weeks or more.
- Finally, record your new title at the cadastre office in City Hall for a new account of real estate taxes and ownership. Remember, no cutting corners in this process on How to Buy Rea Estate in Honduras