Real Estate Investment in Suriname:
- ‘Before Buying’
- ‘Buying Process’
1. Before purchase
What matters when financing a home? What is the role of a notary? Do you need an agent?
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The mortgage
If you want to mortgage in Suriname, you need a fixed income. In the application, you need an employer declaration and a copy of your salary slip. The home mortgage serves as collateral for the lender.
The mortgage rate in Suriname is very high. Banks ask for between 12% and 14%. Individuals can pledge in Suriname. Perhaps you can treat a private person better.
For many people in Suriname, a regular mortgage is very expensive. The Suriname government tries to meet people with so-called subsidized mortgages.
For foreigners who want to buy a holiday home in Suriname, it is better to mortgage them in their country.
There is no mortgage interest deduction in Suriname.
A full mortgage is not possible. You should self-finance at least 30% of the purchase price. The maximum mortgage is 70% of the purchase price.
The maximum duration of a regular mortgage is between 15 and 20 years. 25 years for a concessional mortgage.
The notary registers the mortgage deed at the mortgage office. The cost of a mortgage deed is about 5.5% of the loan amount.
When implementing a mortgage, you require the following documents:
- A valid id
- An employer’s statement
- Bank statement of salary slip and salary payment
- Remove from residents register
- Declaration on nationality
Role of a notary?
A notary provides the following services:
Research on the seller and possible mortgage and seizure on the property.
Please check the title deed for any liability. Title deed responsibilities are assigned to the next buyer. That the property can only serve as corporate housing.
Research on comfort. For example, free view, right of way, etc.
Verification of the presence of all required documents.
All stakeholders should sign the deed of sale. If it is an inherited property, then all the heirs have to sign the deed of sale. The notary will supervise this process.
Advice on home financing
It is wise to include a notary early. This can save you a lot of trouble. The notary fee is a minimum of 1% and a maximum of 2% -3%.
You should properly examine the work of a notary. A notary can also make a mistake.
Real estate agent
In Suriname, there are accredited agents and agents without officially recognized status. The real estate agent is not a protected profession. Anyone can call himself an agent. If you can prove that you have extensive knowledge in the brokerage sector, you can take an oath as a broker. This is done through a process before the court.
Perhaps it is wise to get a certified estate agent. You can also arrange business with a firm like Suritrust. It is a 100% subsidiary of De Surinaamsche Bank. It also provides real estate services. A real estate broker should be well knowledgeable of the local real estate market. He can evaluate the best price to pay for your home.
Evaluation
To be sure, you can evaluate in advance. In Suriname, there are various recognized appraisers. The appraiser looks at the basic condition of the house. The state of the housing market is weighed, and the appraiser also looks at potential legal implications and restrictions.
If you apply for a mortgage, the appraisal report must not be older than 2 years.
Flooding
You have to certify in advance whether rain in the street or area will not lead to flooding. If possible during the rainy season, get it checked.
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Can the foreign property be owned?
As a foreigner, you can own a property in Suriname. However, there are restrictions on the so-called, renting of land. For this, you must be a resident and have the nationality of Suriname, South America.
2. Purchase Process
What about the purchase process?
The formal sales process is set in motion by the notary and lasts 2 to 3 weeks.
The purchase process revolves around the following three documents: the purchase agreement, the deed of transfer, and the mortgage.
Purchase agreement
In the purchase agreement, both the buyer and seller have placed in writing the appointments that have been agreed upon. Incidental conditions are also included. If the buyer cannot get a mortgage, he can cancel the purchase agreement free of charge.
Often buyers and sellers establish an initial purchase agreement. In the initial purchase agreement, the buyer has several days to cancel the transaction at no cost.
At the moment the purchase is final, the notary will prepare the deed of transfer. In case of a mortgage, the notary shall also while making the mortgage deed.
Deed of transfer
The agreement of transfer must be confirmed by both parties. After signing, the buyer is the owner of the house. The notary shall register the deed of transfer in the public register of the mortgage office.
The mortgage
If you finance your home through a mortgage, you should sign the mortgage immediately after signing the deed of transfer. The mortgage is an official notary deed. It is registered in the Public Register at the Mortgage Office.
If you are living abroad, then you do not need to be present during the transfer. The notary will make the paperwork, and you can allow someone to sign on your behalf. If you do not have a friend or family in Suriname you can arrange a representative through a notary.
Know the detailed information about Real Estate Investment in Suriname at https://www.gov.sr/