Buying Property in Barbados: Legal Insights from Harridyal Sodha Associates Copy

Introduction

For anyone considering buying property in Barbados, understanding the legal process is just as important as finding the right villa or beachfront apartment. While Barbados is widely regarded as one of the most stable and welcoming real estate markets in the Caribbean, the process of purchasing property here can differ significantly from jurisdictions such as the United States, the United Kingdom, or Canada.

In this interview, Sean Stewart of Stewart & Co Real Estate speaks with three members of the Barbados law firm Harridyal Sodha Associates. The conversation explores the legal realities behind property transactions on the island, from title searches and due diligence to financing, estate planning, and ownership structures.

Joining the discussion are Liza Harridyal, Principal of the firm, Ayo Barnard-Rollins, Head of Real Estate, and Keisha Hyde-Porchetta, Head of Corporate. Together they share practical insights based on years of experience advising both local and international clients purchasing property in Barbados.

The discussion covers common misconceptions foreign buyers have about the Barbados legal system, why property transactions can take longer than in other jurisdictions, and what buyers and sellers should do to avoid costly delays. The conversation also touches on newer developments in the legal landscape, including anti-money-laundering requirements, proposed digital conveyancing systems, and the growing interest in trusts, corporate ownership structures, and potential real estate investment trusts.

For overseas buyers, developers, and investors looking to understand how the Barbados property market works from a legal perspective, this conversation provides valuable insight into the steps involved in completing a successful transaction.

Key Topics Covered in This Interview

• The legal process for buying property in Barbados

• Why property transactions take longer in the Caribbean

• Title searches and the unregistered land system

• Due diligence requirements for buyers and sellers

• Using companies or trusts to hold property

• Exchange control considerations for foreign buyers

• Estate planning and property ownership

• Development challenges and timelines

• Financing options and mortgages in Barbados

• Future changes including digital land registration

Introduction

Sean Stewart:
Hi everyone, Sean here at Stewart & Co Real Estate. Today I'm joined by not one, not two, but three members of the law firm Harridyal Sodha Associates. Liza Harridyal, Keisha Hyde-Porchetta, and Ayo Barnard-Rollins are going to tell me all about various aspects of law relating to property transactions in Barbados.

We'll be talking about trusts, company structures, wills, and all the exciting things that come with buying or selling property. I'm looking forward to getting into it and I hope you are as well.

Understanding the Legal Process of Buying Property in Barbados

Sean Stewart:
For someone buying or investing in Barbados for the first time, what’s the biggest thing they should understand about how the legal process works here?

Liza Harridyal:
I’ll start by explaining our roles in the firm. I’m the principal of the firm. Ayo is the vice-principal and also the head of our real estate department, and Keisha is the head of our corporate department.

As a medium-sized firm in Barbados we tend to cover several areas, including commercial law, corporate work, immigration, and real estate. Ayo lives and breathes real estate transactions, so I’ll let her answer that question.

Ayo Barnard-Rollins:
One of the first things international clients need to understand is that the process here is different from their home jurisdiction. We deal with clients from the United States, Canada, and the United Kingdom, and the timelines there can be very different.

In Barbados, the timing is usually longer. Even with a cash purchase there are several steps that must take place before completion.

Why Property Transactions Take Longer in Barbados

Liza Harridyal:
The delays are not usually because professionals are slow. Much of the process depends on manual systems and government departments, which means attorneys often have to wait for documentation or searches to be completed.

Keisha Hyde-Porchetta:
Our system is also more manual than in many other jurisdictions. Title searches and other checks often have to be done physically rather than digitally.

Sean Stewart:
That’s important to understand, especially if a buyer is coordinating a purchase here with another transaction overseas.

Title Searches and the Unregistered Land System

Liza Harridyal:
Barbados operates largely under an unregistered land system. That means attorneys must investigate the chain of title by reviewing historical deeds.

Sometimes that can involve going back twenty years or more to verify ownership.

Ayo Barnard-Rollins:
I often explain it to clients as a family tree of ownership. If a property has changed hands one hundred times, there could be one hundred deeds connected to that property.

Common Legal Misconceptions from Foreign Buyers

Sean Stewart:
What are the most common misconceptions foreign buyers have?

Ayo Barnard-Rollins:
Timing is the biggest one. Clients sometimes expect a transaction to close within a week, but that’s rarely possible here because of the due diligence required.

Another factor is financing. Even wealthy buyers sometimes borrow money as part of their investment strategy, and that adds additional layers to the process.

Due Diligence and Anti-Money Laundering Requirements

Keisha Hyde-Porchetta:
One of the biggest changes in recent years has been increased due diligence requirements. Real estate agents and attorneys now both have responsibilities to verify their clients and ensure proper anti-money-laundering procedures are followed.

This can sometimes frustrate clients who are asked for similar information multiple times, but it is a necessary part of the process.

Using Companies or Trusts to Hold Property

Sean Stewart:
We’re seeing more buyers use companies or trusts to hold property. When does that make sense?

Ayo Barnard-Rollins:
The first question we ask is always about the buyer’s intention. Are they purchasing the property as a residence? As an investment? Are they planning to hold it long-term or resell it quickly?

Those goals determine whether a corporate structure or trust is appropriate.

Exchange Control and Foreign Ownership

Ayo Barnard-Rollins:
Foreign buyers do need permission from the Central Bank of Barbados through the Exchange Control Department, but in practice it is largely a formality handled by the attorney.

The key point is that Barbados places no restrictions on foreigners owning property here.

Development Projects and Legal Considerations

Sean Stewart:
When it comes to development projects, what challenges do developers underestimate?

Liza Harridyal:
Budget and timing. Those are always the two biggest issues.

Developers often underestimate the time required to complete a project, which can create difficulties for buyers who expect to take possession by a certain date.

Financing Options for Foreign Buyers

Liza Harridyal:
Foreign buyers can obtain mortgages in Barbados, although typically banks may lend around fifty percent of the property value depending on the circumstances.

Many buyers, however, choose to finance purchases through other assets as part of their broader investment strategy.

Future Changes in Barbados Real Estate Law

Ayo Barnard-Rollins:
There have been discussions about introducing digital systems for property conveyancing and potentially expanding the registered land system. If implemented, these changes would make the process faster and more transparent.

Closing Thoughts

Sean Stewart:
Thank you all for sharing your insights. This has been extremely helpful for anyone interested in buying property in Barbados.

If viewers have further questions, please feel free to let me know and we may cover them in future episodes.