If you’re thinking about buying property in Trinidad and Tobago—whether it’s your first home, a plot of land, or an investment opportunity—it’s important to understand the steps involved.
Foreign nationals (i.e. non-citizens of CARICOM member states) may need a licence to purchase land in Trinidad depending on the size and type of the property, whether residential or commercial. However, the licence is mandatory for the purchase of property in Tobago. The process can take time and should be factored in early.
While buying property in Trinidad and Tobago is fairly straightforward, there are a few legal requirements and practical matters you’ll want to be ahead of from the start. This article offers a clear breakdown to help you feel informed and confident on your journey to becoming a property owner.
Step 1: You’ve Found the Property—What Comes Next?
Whether you’ve been speaking with a realtor or made direct contact with the vendor and agreed on a purchase price, the next step is entering into a formal written contract that sets out the terms of the sale. This is often referred to as an “agreement for sale”.
The Conveyancing and Law of Property Act states that a person cannot bring an action for the sale of land unless the contract is in writing. The Courts have confirmed that even informal agreements for the sale of land may carry legal weight in Trinidad and Tobago. Most importantly, the vendor is required to provide a “good and marketable title”, which means up-to-date rates and taxes receipts and other key documents should be obtained when purchasing property.
While you can prepare your own contract, it’s best to retain the services of an attorney-at-law registered with the Financial Intelligence Unit (FIU) to act on your behalf. Your attorney can also prepare the deed and, if they are listed on your lender’s panel of attorneys, your mortgage documents.
Pro tip: If you’re planning to seek mortgage financing, it’s best to have the signed agreement for sale in hand early so it can be submitted to the bank or credit union during the loan approval process.
The agreement defines each party’s obligations. For instance, the vendor is usually responsible for providing good, marketable title, a property free from all encumbrances, liens and charges, and approvals from the Town and Country Planning Division and Regional Corporation.
At this stage, the payment of a deposit is enough to create a legally binding agreement. While not legally required, it is customary to pay a deposit of 10% of the purchase price.
The parties may agree to any timeline for completion, but the standard timeframe is 90 days. Be mindful of specific requirements or delays from your lender and communicate those clearly to the vendor when agreeing to a timeline. Seek legal advice to determine what’s reasonable. You can also opt to have the deposit held in escrow if you’d like greater protection.
Pro tip: If your attorney or realtor offers escrow services, be sure to check that they are registered with the FIU and are legally able to act as a trustee of the deposit funds. Further, don’t hesitate to enquire as to whether the deposit will be placed into a separate interest or non-interest bearing account, a separate client account or commingled with other funds. These are important considerations in determining whether you wish to have your funds in escrow.
Step 2: What’s a Title Search and Why Do I Need a Valuation Report?
One of the most important parts of the process is the title search. This ensures the vendor is the lawful owner of the property and confirms whether any mortgages, judgments or other claims—called “encumbrances to title”—exist that could affect your ownership.
You should also verify the property boundaries. Ask the vendor for a copy of the cadastral sheet and consider hiring a licensed land surveyor to check and mark the boundaries to avoid encroachments.
A valuation report is also essential. Prepared by a certified valuer, it determines the market value of the property by considering location, condition, and similar recent sales in the area.
If you’re seeking mortgage financing, note that lenders may have a list of approved valuers. The final valuation and any special notes may affect loan approval, so it’s best to get this report early.
Step 3: Stamp Duty and Other Costs
(Don’t worry—it’s not as scary as it sounds.)
When purchasing property, you are required to pay stamp duty under the Stamp Duty Act. This is a one-time tax due at the time of transfer of ownership. It is not the same as property tax, which is a recurring charge after purchase.
Depending on the value and type of property, you may be exempt from paying stamp duty. First-time homeowners, for example, may qualify for full exemption if the property’s market value or purchase price—whichever is higher—is between $850,000.00 and $2,000,000.00.
The stamp duty payable may also depend on the intended use of the land—residential, agricultural or commercial. This is where your approvals and valuation become relevant.
If you’re buying land to build on or purchasing in a new development, confirm that the property has all required approvals. These include Town and Country Planning approvals and final approvals from the Regional Corporation, or any special permissions needed for your intended use.
Pro tip: Ask the vendor to provide copies of any approvals they have. If approvals are missing, consult your attorney to determine whether they are needed and should be factored into the agreement for sale as this may also affect your ability to access mortgage financing.
Step 4: Signed, Sealed and Delivered
Once all is in order—title is clear, approvals are in place, and your lender’s attorneys give the go-ahead—it’s time to close the deal.
Your attorney will prepare the final legal documents: either a Deed or a Memorandum of Transfer depending on the land title system. The lender’s attorney will prepare the mortgage documents.
An appointment is then arranged for you and the vendor to sign at your attorney’s office. The balance of the purchase price is paid at this point, and the transaction is closed.
Your attorney will have your title document stamped by the Board of Inland Revenue and registered at the Land Registry in the Office of the Attorney General and Ministry of Legal Affairs.
Pro tip: Before the appointment date, try to make one last visit to the property to confirm that it is completely vacant. One of the vendor’s obligations is to provide vacant possession, meaning no tenants, squatters, or occupants should be on the premises.
Final Thoughts
In addition to the steps above, be sure to plan for other costs such as attorney’s legal fees, bank loan processing fees, and post-purchase expenses like lease rent, property tax, maintenance charges, and insurance.
After registration, your attorney should obtain a Certified Copy of your title document. This typically takes six to eight weeks and is required when updating your name or address with utility companies like WASA and T&TEC, or when working with architects for construction or renovation.
Consider filing your valuation return with the Valuation Division of the Ministry of Finance promptly, to comply with property tax regulations.