The actual purchase of
property in Roatan is a straightforward process when undertaken with the guidance of a proficient real estate broker and legal counsel. Here’s what you should know:
Purchase Agreement and Legal Assistance
- We employ a standard purchase agreement in English, widely used by reputable real estate offices in Roatan. This agreement includes essential contingencies to safeguard your interests and provide your lawyer with the necessary documentation for a seamless purchase.
Foreign Ownership
- Foreign individuals can own up to 0.75 acres of land per investor. Couples can collectively own up to 1.5 acres in their names. For larger land holdings, the formation of a Honduran corporation is a viable option.
Honduran Corporation
- Establishing a Honduran corporation, facilitated by a qualified attorney, typically costs between $1200 to $1600. This process is integrated into the real estate closing.
Document Review
- It is essential to have a sound understanding of the documents associated with clear title. To safeguard your investment, seek the expertise of a qualified real estate broker and a Honduran lawyer for a comprehensive document review.
Financing
- Roatan primarily operates as a “cash market,” with local banks generally refraining from lending to foreigners and North American banks rarely offering loans beyond their national borders. Many buyers finance their purchases through home equity loans, savings, or by divesting from other investments.
- Seller Financing is another avenue, typically negotiated as part of the purchase offer. Current rates range from 6% to 10%, with most sellers preferring at least a 50% down payment. This arrangement is often structured as a “Promissory Sale,” akin to a “Land Contract” in the United States.
- Honduran citizens can access bank loans through local Honduran banks.
