Association of Real Estate Agents of Trinidad and Tobago

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AREA — Thu, 20 Oct 2011 09:31:16 +0000

The AREA website is here to provide you with updates on the Industry & Education for Success!

Join our Facebook group at: www.facebook.com/groups/areatt

Townhouses for Sale – De Cruz Villas, Santa Cruz

Area Admin — Fri, 05 Feb 2010 16:02:33 +0000

House for Rent – Maracas, St. Joseph

Area Admin — Fri, 05 Feb 2010 15:57:01 +0000

The Crossings, Arima

Area Admin — Fri, 05 Feb 2010 15:50:08 +0000

27 Malabar Branch Road, Arima

Area Admin — Thu, 12 Nov 2009 15:25:30 +0000

Address: 27 Malabar Branch Road, Arima
Realtor: Cynthia Armstrong of CNK Realtors.

Real estate purchase – without the hassle

Area Admin — Mon, 03 Aug 2009 20:45:24 +0000

Finding a property that meets your requirements can be quite frustrating. Finding one that meets your requirements, within your price range which also meets the lender’s requirements for adequate security, is indeed a challenge! Purchasing real estate can sometimes be a very complex process – especially if it becomes necessary to borrow to assist with the purchase. To alleviate much of the pressures involved in the purchase, particularly if it is for a home, a price range for the purchase particularly if it is for a home, a price range for the purchase should be established before starting to look at properties. If you need to borrow, a quick call to your lender of choice will inform you of the borrowing limits of that particular institution. Or, you could call mortgage broker who will give you loan information from the entire market. Many purchasers often forget to include Legal fees and Stamp Duty in their budget.

Property search

Now that you know precisely what your maximum purchase price is, you can go out and look at a broad cross-section of properties to get a “feel” for the market before committing. This will help you to determine which properties may be able to offer you value for money.

Making an Offer

Once you have found a property you like, the next step is to make your offer. This can be a little tricky as many vendors and real estate agents expect you to pay a deposit as soon as your offer is accepted. Sometimes this can be a very dangerous practice, as it is possible to lose your deposit if you are unable to complete the transaction. You should make your offer subject to a valuation report and perusal of your application by the lender. But, some vendors are not willing to wait this long, and some negotiation may be required. When you have the go-ahead from the lender, you are now ready to enter into an Agreement for Sale. This Agreement is the foundation document of your purchase transaction and should not be treated casually. It essentially outlines the terms and conditions of sale. You should get advice on this document before signing it. A typical agreement (there is no such thing as a “standard purchase agreement, as each vendor and purchaser have different requirements) details the amount of the deposit paid (very often 10 percent) and states the amount of time in which the completion must take place (usually 90 days).

Obtaining financing

If you are obtaining a loan to assist you with your purchase, now is the time to visit your lender or mortgage broker to start the application process. The broker would provide a list of documents required by the various parties in the transaction. Only after the lender receives all the information and documents required, will they underwrite the loan. If your application is successful you will receive an “Offer to lend” by the institution. After you have read, understood, signed and returned this offer, the lender’s attorneys-at-law would be instructed to prepare the deed of mortgage. The attorneys will require written confirmation that the property is free and clear from all encumbrances. These would include a WASA Clearance Certificate, WASA receipt for the last quarter, Lands & Building tax receipt, the existing lender’s redemption statement and the deed of release (once again, if you are using a mortgage broker, these documents will be obtained for you). They will also ask which attorney will be preparing the deed of conveyance. If you choose the same law firm to prepare both deeds, there is usually a discount on the fees for the second document.

Closing the deal

At this stage, the attorneys will calculate the stamp duty and any other out-of-pocket expenses together with any shortfall on the purchase price. On completion of the preparation of the deeds, and the receipt of all the final documentation, an appointment is scheduled for both the vendor and yourself (the purchaser) to sign the deeds. The attorneys will then send for the deeds to be registered and copies of the registered deeds will be sent to you a few weeks later.

Real estate duties, taxes and fees in Trinidad and Tobago

Area Admin — Mon, 03 Aug 2009 20:43:33 +0000

AREA welcomes the Government’s much needed adjustment to the Stamp Duty regulations. Previously the threshold for exemption from Duty was $450,000 but with the dramatic increase in house values, this threshold was far too low to be effective in giving relief even at the low end of the property market.

The new threshold has been raised to $850,000 which will make a significant difference to closing costs, particularly since the Government has also adjusted the percentages of Duty paid on the sliding scale of charges.

The details of the new Stamp Duty calculations are included in the following document – Click Here

Foreign Investment Act 1990

Area Admin — Mon, 03 Aug 2009 20:42:10 +0000

The Foreign Investment Act of 1990 allows a foreigner or a foreign company or non-resident to purchase up to one acre of residential land and/or up to five acres of commercial land in Trinidad & Tobago, without applying for a license. It is very difficult to locate land along the beach frontage in either island unless one is buying with development opportunity in mind. Most real estate along our coasts is owned as large estates ranging from 100 acres to 300 acres.

Owners are not willing to subdivide the real estate to sell. A number of these estates, however, have recently changed hands and quite a few projects came on stream in Tobago within the year, that would include sale of lands, townhouses, hotel sites.

AREA – Past, Present and Future

Area Admin — Mon, 03 Aug 2009 20:41:04 +0000

The Association of Real Estate Agents, AREA, was officially launched in 1990. This was finally accomplished after more than 10 years and numerous unsuccessful attempts to create an Association of Agents who were working on a full time basis within the Real Estate Industry. As far back as the mid- to late-1950’s, a number of attempts were made to establish some sort of co-operation between people actively involved in the selling of Real Estate, and acting as sales agents for owners of property. Back then, there were probably not more than five Real Estate Agents in the Port of Spain are actively involved in the real estate business, even fewer in San Fernando, and numerous “house agents” scattered around the country, who were assisting property owners to either sell, rent or manage their property.

Well-intentioned as they all were at that time, nothing ever seemed to take hold. In those days there were not as many properties for sale on the open market as is the case today. It was not a common to tradition move and upgrade homes. When you bought your home back in the 1930’s and 1940’s, inevitably you were probably set for life in that home. This is where the family grew up, went to school and eventually only left the roost to get married.

OIL BOOM

As the late sixties rolled in, and the windfalls of the oil boom (known as the oil crisis in oil-importing countries) started to filter in through the various communities, financial security improved in nearly all areas of the country, and the demand for housing increased. One inevitably saw a number of people jumping into the Real Estate business and acting as “Agents.” It was inevitable that among those that got into the business, there were going to be some who saw it as an opportunity to capitalize on the uninformed and in many cases, the majority of those who were badly hurt were the least able to afford it. Until the formation of AREA, there were no rules by which a Real Estate Agent was governed. Even the numerous well-intentioned and ethical agents were all playing by different rules. There were virtually no two agents who practiced in the same manner.

It was the context of this situation and the numerous complaints from the general public that it was felt that some sort of structural organization and direction was needed. Even today, anyone wishing to get into business of virtually any sort in Trinidad and Tobago can do so without the need for a license, regardless of whether they were qualified to handle that business or not. Additionally, with the number of agents growing, it was felt that if real estate agents themselves did not make an attempt to improve the situation, chaos was inevitable. In response to this, the Association met and an agenda was established. Some of the priorities that were listed were:

Standardise contractual forms, documents and agreements.
Set up a system for sharing information among Real Estate Agents.
Establish Educational programmes.
Establish legislative models which could be used to regulate the local industry.

When AREA was officially launched in 1990, the membership comprised 6 to 8 of the most active Real Estate Companies covering about 25 sales people. Today, there are more than 51 brokers, 30 sales associates and 18 corporate members. The multiple listing service includes hundreds of residential and commercial properties.

The Trinidad and Tobago Real Estate Market – An Overview

Area Admin — Mon, 03 Aug 2009 20:39:34 +0000

Real estate prices in Trinidad have increased substantially since the recession of the 1980’s. With the opening up of the economy the Trinbagonian entrepreneur is more confident in the economy and has taken full advantage of the tax benefits implemented in recent years. There has also been an influx of foreign investment that have come to Trinidad mainly in the petrochemical industry.

These investors have set up ammonia, iron carbide and methanol plants to rival the size of others all over the world. Most of the offices for these foreign investors are located in Port of Spain, with the petrochemical plants situated at Pt. Lisas, thereby creating a demand for office accommodation at Pt. Lisas and Port of Spain and for housing in the north-western peninsula and San Fernando environs of Trinidad. BPTT has completed the construction of a 60,000 square-foot office building in Port of Spain, that is owned by three of the Country’s largest finance companies who have made a determined thrust as real estate developers.

As a 34% shareholder in the Liquefield Natural Gas Plant (LNG) presently being constructed at Pt. Fortin, Amoco has also commissioned a 20,000 square-foot office building at Pt. Fortin. With this plant being established at Pt. Fortin, together with the mega plants at Pt. Lisas, we have finally seen an improvement in real estate prices in the south, due to housing needs for the LNG plant’s contractors. Market values have finally caught up with replaceable cost values, even though housing is still significantly cheaper than in the north west.

There has been a mini-building boom in the last three years in Trinidad, which has helped to steady prices even though the opening up of the economy has resulted in quite a demand for housing. This building boom was mainly as a result firstly, of a tax incentive implemented that would mean that all rent would be tax exempt, and all rates, taxes, mortgage interest and expenses deductible, once the property was constructed after 1993 and completed by 1996. Secondly, the demand for rental accommodation meant that the average Trinbagonians could buy, build and lease at a great return on his investment, having had the tax break. Thirdly, the entrepreneur was once again confident in the economy of the islands.