Pre-Closing Process:

1. Determine what property you would like to purchase,
2. Negotiate with the seller on the cost of the property,
3. Sign an agreement to purchase property and:
• Deposit earnest money in the amount of 10% of purchase price,
• Establish terms, conditions and contingencies of the sale,
• Set a closing date.

Closing Process
(The transfer of ownership and disbursement of payments, commissions and closing costs.)

1. Payment by Attorney, of Transfers Tax, Registry Fees, Bar Association Stamps, etc. (72 hours),
2. Release of authorized first copy by the Notary,
3. Issuance of Cadastral Certificate by the Local Municipality,
4. Submission of the Deed to the Registry,
5. Registration of Deed.

Closing Documents Checklist
(Ensure that you have all of the following documents.)

• An Agreement to Purchase Property stating all terms, conditions and contingencies,
• The Property Title of the land, vested in the name of the Seller; and, if applicable, property Title of parcel providing access,
• Duly recorded Power(s) of Attorney in the event seller(s) or easement grantor shall not be present.
• Survey of the land with Polygonal description and area, signed and stamped by a Honduran Civil Engineer or Architect.
• Cadastral Certificate of the Property subject of the Contract (desirable but not mandatory)
• Passports, Residency Cards or other forms or ID of all parties involved in the contract.
• Suggested name for Corporation (when applicable). Also desired stock distribution and administration.
• Final payment of the Land and Closing Costs should already be in escrow by the time of closing.

Title Searches
It is very important that the Closing Attorney you choose checks the current Property Title, as well as the antecedents going back at least 20 years.

  *Ordinary Statute of limitation = 10 years (Involves Fair Title and Good Faith)
  *Extraordinary Statute of limitation =20 years (No Title and No Good Faith)
    (Faults and actions against the Government are NOT interrupted by Statute of limitation.)

Accessories to Closing

• Title Insurance
• First American Title Insurance Company
• Stewart Title
• Mortgages
• Easements of any sort
• Pedestrian or Vehicle Access
• Water
• Public Utilities
• Closing Costs
• Transfers Tax = 1.5% of Purchase value
• Cadastral Certificate = 1% or 2% (Depending on the Municipality the property is Located. Applicable only to the Bay Islands.)
• Registry Fees = US$1.00 per every Thousand.
• Bar Association Stamps, Miscellaneous Expenses, Notary’s Fees, Corporations, etc..
• Closing Costs, in average, are equivalent to approx. 5% of the transaction’s value.
• All Real Estate Transactions involve an Attorney (Notary). Transactions documented in Private documents do NOT have any legal effect before third parties.
• All closing documents MUST be recorded at the Registry on Roatan. Average time, currently, approx. 3-4 months.
• Closing Costs are customarily payable by the Purchaser.
• In your Real Estate experiences you will find transactions:
1. From Individuals to Individuals;
2. From Individuals to Corporations;
3. From Corporations to Individuals;
4. From Corporations to Corporations;
5. Purchase of a Corporation with its Assets.