Property in Guadeloupe

Buying Property in Guadeloupe

The Caribbean Island group of Guadeloupe is a French Overseas Department and is considered French land. Guadaloupe includes the island of the same name and the French controlled part of St. Martin. Formerly St. Barthelemy (St. Bart’s) was part of this Department but is has recently become its own administrative Overseas Division.  It has long been one of the most popular places to visit and purchase property in the Caribbean. As in France, there are no restrictions on foreign property ownership, although non EU buyers need to apply for permission to reside in France, as this is a French possession.

After finding the property you wish to purchase and negotiating a price, both parties sign a preliminary agreement. This agreement is drawn up by an estate agent or notary and the buyer pays a 10% deposit into an escrow account. This document is legally binding and the property is taken off the market when it is signed. If a mortgage is to be used, this contingency must be spelled out in this agreement. If financing falls through and this is not part of the agreement, then the buyer loses the deposit.

At this point the due diligence is performed and any funding is finalized. Inspections and surveys are not the norm here so, for your own peace of mind, perform these tasks prior to signing the preliminary agreement. Title and registration searches are typically performed after this has been signed. If the building is less than ten years old, there is a liability on the seller’s part for all defects during the first ten years since construction.

At the end of the initial period spelled out in the preliminary agreement, the buyer and seller sign the final contract, or Acte de Vente, at the Notary’s office. The buyer pays the remainder of the balance and now owns the property. At or before the final signing, the buyer must also pay all legal fees and registration taxes and obtain insurance on the property as well.

Registration duty is approximately 5% and there are some other registration fees as well. Notary’s fees are usually 1% of sales price plus 19.6% VAT. All fees average about 7.5% of the purchase price plus any surveying and inspections performed.