Question: How are Ambergris Caye properties titled?
Answer: Presently, You can take title to freehold property on Ambergris Caye in one of 3 ways. The oldest form of title is taken via a Deed of Conveyance (or Deed of Encumbrance), which originates from the British colonial days. Presently all lands north of the 'River' of San Pedro Town are titled via Conveyance. Ownership by Conveyance can be subsequently converted to a Transfer Certificate of Title (TCT) via an application for first registration. A TCT is a physical title, whereas ownership via Conveyance is a registered right to ownership of a particular parcel of land. Either form of ownership is equally secure and mortgageable, however it is slightly more costly to transfer title on a TCT than on a Deed of Conveyance.

Question: Can I take title to my property under an entity other than myself?
Answer: Yes. This is one area where purchasers are generally lacking in their due diligence. In many cases, it is prudent to form a Belizean company and take title to the property under this structure. The cost to form a company runs around $US 1000 and around $US 150 annually to maintain it in good standing. One should always think re-sale when investing in property. If you purchase a Belizean company that holds the property then you will be subject to only a 3% tax on the value of the purchase price. If you purchase a property, which is titled in the seller's name, then you will be subject to a 10% transfer tax on the purchase price. On sales under corporate ownership the savings on the closing costs for the purchaser is always a 'deal sweetener'.

One can also take title under a foreign LLC however we have never run into a situation where a foreign LLC was purchased along with the property. It might behoove some foreign purchasers to take title under a domestic LLC but we have yet to figure out any logical reason to do this, other than to afford the owner some degree of domestic liability shielding. A foreign LLC, just like a Belizean company, must have a Belizean registered office (an attorney or CPA) and be kept in good standing locally via annual filings.

One can also take title to property via an offshore vehicle, be it a foreign trust or International Business Corporation (IBC). An IBC is the most popular and is simply an anonymous company that is housed in one of many offshore jurisdictions around the world. The ownership of the IBC is via bearer shares so there is no record in any registry of the actual shareholders of the company. The bearer shares can be issued in ones' names or in the name of the attorneys of the registered office for additional shielding. In most offshore jurisdictions the registered agent must hold the bearer shares under lock and key.

Under Belizean law, only a foreign IBC can hold title to shares of a company that owns real estate in Belize. Here is an example of the mechanics of an offshore ownership structure:

1. The purchasers would hire a Belizean attorney to remotely form a Panamanian IBC through the Belizean attorney's corresponding Panamanian law firm. Bearer shares would be issued in the name of the purchasers and would be held in trust at the IBC's Panamanian registered office.
2. The purchaser would then form a Belizean company and issue the shares to the Panamanian IBC. The directors of the Belizean company can be either the purchasers or the Purchasers' Belizean attorney.
3. Title to the property would then be taken under the name of the Belizean company. Under this ownership structure, the purchaser would have complete anonymity of ownership and absolute isolation from any personal liability. The cost to set up this structure would be approximately $US 1500 for the IBC, $US 1000 for the Belizean Company and around $US 1500 per year to keep both companies in good standing. Ownership under this structure can be very appealing to purchasers of larger commercial facilities and to individuals requiring high degrees of privacy.

Question: What is the process for purchasing a property in Belize?
Answer:

1. The first step is to submit an offer to the seller. Offers must be submitted along with a minimum of 2% earnest monies deposit with Sunrise Realty Ltd. The offer form is legally binding to both parties and includes an adequate due diligence period for the purchaser.
2. Upon acceptance by the seller, the purchaser will then retain a local attorney. Once satisfactory title research is completed, a recordable Agreement For Sale, or original title transfer instrument will then be drawn up based on the particulars of the original purchase offer.
3. The balance of the monies payable for either the down payment or the full purchase price will be due for deposit to our stateside company escrow account at the time specified on the purchase offer or Agreement for Sale.
4. The transfer documents will then be executed and delivered to the purchaser's attorney for review. The attorney will then send us copies and notify us that the documents are in order and will instruct us to release the seller's escrowed funds.
5. The executed documents will subsequently be processed at the Lands Registry and an original title or certified copy of an Agreement for Sale will then be presented to the new owner in due course.