Purchasing Property in Roatan

Purchasing property in Roatan is much the same as most other places. Brokers and agents who are licensed to sell Real Estate in Honduras belong to the Roatan Realtors Association and the NAR (National Association of Realtors) and operate under the same Code of Ethics and Standards of Practice. Roatan also has a Multiple Listing Service so that everyone can show any property listed on the MLS.

There are some considerations to keep in mind if you’re looking to purchase acreage or multiple properties. Foreigners can own up to .72 of an acre as an individual. Larger or multiple parcels may also be purchased though you must form a Honduran Corporation. This can be done by a Honduran Attorney / Notary at a cost of about $2,000. Once you select a property that you would like to purchase the agent/ broker will write up an offer to purchase and present it to the seller or seller’s agent. When the buyer and seller come to an agreed purchase price the agreement is signed by both parties with the details of any contingencies and a closing date.

At this point the buyer will wire Earnest Money typically 10% of the purchase price to the brokers escrow account with the final balance due at closing generally within 60 days or a mutually agreed time frame. The buyer must also contract a Honduran attorney to represent his interest and to review all the documents to ensure the property has clear title. Your realtor will assist in this process to ensure all the required documents, Escritura Publica, Catastral Certificate, Current Survey and Property Tax Receipt are delivered to your attorney. The final balance including closing cost is the buyer’s responsibility unles sotherwise agreed upon must be wired to the brokers escrow account prior to the closing date. Once the buyer and seller or their respective representatives have signed the closing documents and received copies of the closing documents funds are paid out to the seller and attorney.

If you are not able to attend the closing in person your attorney can draw up a POA (Power of Attorney) in favor of someone you select, generally your broker or your attorney to
represent your interest in accepting the title of the property. It is recommended the POA be done while here in Honduras though it can be done remotely it is more complicated and time consuming. At the time of closing your attorney will draw up a Honduran Protocol transferring the property from the seller to the purchaser. Your attorney will submit the transfer of the
property document to the Registrar’s office which will record the sale and issue a new Escritura Publica (Title) in your name; this can take up to one year. Closing costs are
approximately 6 to 8% of the purchase price which include Municipal fees, Honduran Transfer taxes and attorney fees.

The Seller is responsible for paying the real estate commission and any Capital Gains associated with the sale of the property.