The feeling you get on a super clear cloudless day, when the water is that perfect shade of blue and you have nothing to do and all day to do it, is reason enough to live in Barbados. (Thanks Tarik Browne)

The gorgeous ocean!… and there are no sharks that I am aware of! (Thanks Julianne Gill)

Only in Barbados will it have rain and sunshine at the same moment, beaches that look like they are from a postcard, are you forced to realise the world doesn’t move a million miles a second when you are there and where strangers say hello to you. I’m a huge traveller and from Australia to California to Miami, none of them compare to visit, let alone live. There really is no better place to call home. (Thanks Jessy Marie)

St. Nicholas Abbey: St. Nicholas Abbey has been restored and now offers guided tours. Definitely explore the boiling house and rum distillery where St. Nicholas Abbey Rum is produced, hire a guide to learn the history of this grand plantation and sip on your rum punch while watching the home movie created by the previous plantation owner. The lunch at their Terrace Cafe is quite good and their St. Nicholas Abbey’s 12 year and 8 year old rum is even better!

Browse through our images…

What to expect…

Each open house is complemented by a garden party atmosphere with fresh juices, homemade rum punch, and snacks served on the lawns. In addition, books on Barbados and the Caribbean are available for purchase, select artists and craftspeople have their goods on sale, and there is also wine tasting and the sale of tropical plants.

How much does it cost?

For Barbados National Trust members — $20 BBD
For Non-Members — $30 BBD (Adults)
For BARP members — $25 BBD
For children from 5 to 12 years are half price (Children under 5 years are free)

This extends to members of reciprocating Trusts and Societies, including National Trusts of Scotland, England, Wales, Northern Ireland, Australia and New Zealand, and certain heritage societies of the USA and Canada.

What are the admission fees used for?

The open house programme raises funds to support heritage preservation efforts.

Here’s February 2012′s Open House schedule…

DATE: 1st February, 2012

VENUE: Holders House, St. James

Once the plantation house of the vast Black Rock Estate, now, Holders is famous for the Holders Season which is an elegant annual festival of music and theatre in the natural amphitheatre of its garden.

Holders House is a historic, traditional plantation house that is beautifully furnished in a combination of antique and modern styles, which reflects the personality and flair of a creative and dynamic family.

DATE: 8th February, 2012 (and 9th March, 2012)

VENUE: Colleton House, St. Peter

Colleton House was established in the mid 17th century and is an exempla of Barbados’ rich and tangled history. Most recently it was the home of an extraordinary geologist whose art collection spans the diverse cultures he encountered.

This is a rare opportunity to see it, and to reflect on the impact of two remarkable men who owned Colleton House. *Venue organised by Realtors.

DATE: 15th February, 2012

VENUE: Manager’s House, Jordan’s Plantation, St. George

Jordan’s Manager’s House was probably built as the plantation’s sugar curing house in the 17th century, however now it is a roomy, unusual, and welcoming home furnished with antiques, wonderful clocks, and a sense of humour. The grounds contain magnificent trees, a kitchen garden, and structures from a bygone era.

DATE: 22nd February, 2012

VENUE: Pandanus, St. James

Is it the landscaping or its position on the lip of a verdant chasm that gives this 21st century “Caribbean colonial” such a dramatic setting?

Inside, all is comfort, tranquillity and taste, with generous proportions and design details to savour. It’s the holiday home of Lord David Evans. *Venue organised by Realtors.

DATE: 29th February, 2012

VENUE: Arawidi, Apes Hill, St. James

Apes Hill Club has been developed as a prestigious lifestyle community in beautiful natural surroundings. Located within this beautiful development, Moonshine Ridge’s stunning show home, ‘Arawidi’, takes Bajan architecture to a new level whilst offering spectacular views of the island’s beauty and Caribbean sea.

This spacious, luxury house is also of the highest specification. The drive alone is half the pleasure!

For more information on directions to each of these open house events, please click here…

Barbados has some of the best waves year round that peel along each coast and as a result offer a vast number of surf spots all over the island. Barbados has beach breaks with sandy floors, point breaks with hollow, clean lefts, long left-hand reef breaks that are great for beginners or long-boarders and epic right-hand reef breaks where you can sometimes achieve stand-up barrels. Barbados sits near the bottom and just off to the right of the Caribbean Island chain, with the open Atlantic Ocean on the East coast and the Caribbean Sea on the West coast.

When is the prime time for waves?

The ideal time for surfing in Barbados is from November to April, when cold-weather fronts moving along the eastern seaboard of the US produce ocean swells which spread over a thousand miles and results in waves. This is also a busy time for visitors so the line up and some surf spots can some times be quite packed.

For the locals, hurricane season which is from June to November is also a prime time for waves and is when deviant tropical depressions can stir the water to produce some awesome waves on the South and East coast of the island. Lucky for us, Soup Bowl tends to have some sort of wave year round, give or take a couple weeks a year where ‘the Bowl’ resembles the calm West coast waters.

Local talent making it big…

Barbados has already produced top-class surfers who rank high on the International stage and continue to do so with the likes of Chelsea Roet, Chelsea Tuach, Bruce Mackie, Josh Burke, Che Allan and Dane Mackie, to name a few.

Who teaches surfing here?

There are a number of surf schools on the island but these are my recommendations:

Boosy’s Surf School: The instructor, Christian Boos, provides his students with an informative introduction to surfing that is safe, professional and fun! You’re guaranteed to stand up on a wave on the first lesson!

Surf Barbados: Surf Barbados has the experience and knowledge to bring to you the best Barbados has to offer with accommodation, surf lessons, surfboard rentals, surf tours and even car rentals for surfers!

What the pros have to say about waves in Barbados

I’ve been going for over 20 years, and I’d put Soup Bowl as one of the top three waves in the world. It’s got a really good curve and allows all sorts of maneuvers and airs. The only problem is that there are sea urchins all over the bottom — just don’t fall and you’re fine.

Kelly Slater

When Soup Bowl turns on, it’s one of the best breaks in the world.

Torrey Meister

Everyone is so nice here.I’ve never surfed a place with nicer locals. In Hawaii, a lot of people will flat out tell you to leave if you’re not local.

T. J. Barron

How does the line-up in Barbados compare to Hawaii?

Sometimes it may feel as though every surfer on this little island gets in the water at the same time, but having said that, no break is as congested as those in Hawaii (and may it always remain that way!).

Water temperature

The truly amazing thing about Barbados is we have warm waters year round. Although the waters do cool quite a few degrees from November to April as a result of the cold front coming in from the States, you will often hear locals say how ‘cold’ the water is. Of course, surfer’s from anywhere else in the world other than the Caribbean would beg to differ!

Check out some local surfers at various surf spots around the island…

Do you have a Barbados event to add? Let us know in the comments section below.

Barbados Polo Season

DATES: January through May

VENUE: The polo clubs at Apes Hill, Holders and Lion Castle

View the Barbados Polo Club’s schedule to find out more info on individual events throughout the season.

The Mount Gay Rum Round Barbados Sailing Race

DATES: 21st January

VENUE: Start off at The Barbados Cruising Club, Pebbles Beach at approx. 07:00 hours

The aim of the race is simple, even if the course is a little more challenging: One day, one race, to record the fastest time around the island of Barbados.
Records may be set in a number of classes the following of which have been selected and may be increased according to entries. These classes include: Classics, Monohull One Design,  Monohull Open, Overall length over 30’ and under: 40’; 60’; 80; 100’; 130’; Unlimited and Multihull Open, Overall length over 25’ and under: 40’; 60’; 80’; 100’; 130’; Unlimited. There is also a post race party at The Crusing Club at 4:00 PM.

For information on this event click here…

Holetown Festival

DATES: 12th February to 19th February

VENUE: Generally along the Holetown strip on the coast road

This Barbados festival is a week full of festivities which starts off at the Holetown Monument and includes a variety of events such as concerts, live music, street parades, beauty pageants, craft fairs, historical exhibitions, sporting competitions and food and drink events.The Holetown festival marks the arrival of the first settlers to Holetown on 17th February 1627. It’s the perfect way to learn more about Barbadian culture with a load of fun activities along the way.

Admission is free.

Agrofest ‘Achieving healthy lifestyles through agriculture’

DATES: 24th February to 26th February

VENUE: Beckles Road, Bridgetown

Agrofest is a three day event that brings exhibitors from the following areas: health and wellness & relaxation area, Craft Village, Shoppers Bazaar, Games of Chance, educational & business, horticultural, petting zoo, kids snacks & toys, bird show, children entertainment, food court, daily entertainment and agriculture.

Admission is free and for more info call +1 246 436 6683 or email Agrofest…

Oistins Fish Festival

DATES: 7th April to 9th April

VENUE: Oistins, Christ Church

The Oistins Fish Festival is a day of festivities for those that work in the local fishing industry that attracts thousands of visitors and locals. This Barbados festival includes events such as the net throwing competition, The Royal Barbados Police Force Band and 10K road race, live calypso and reggae music, craft fairs, family games and stalls selling Caribbean dishes. Other popular events include the Fish Boning Competition, the Dolphin Skinning Competition, Climbing the Greasy Pole and boat races.

Admission is free and for more info call +1 246 428 6738.

1. what and when to insure;
2. how much to insure for;
3. what an insurer will pay out under a policy;
4. condominium insurance options; and
5. a lender’s rights under a policy of insurance.

For practical and detailed advice on insuring property you should consult a qualified and competent property insurance agent or broker.

1. What and when to insure

When determining what to insure, a real estate investor should bear in mind that in Barbados you cannot insure land. You can only take out a property insurance policy to cover a building, its fixtures and fittings and/or its contents.

As the risk passes to a purchaser from the date the purchaser enters the agreement for sale, a prudent purchaser should not wait until the sale has been concluded to insure the property. A purchaser should take the simple precaution of insuring the property against loss from the date he enters into the agreement for sale.

The Property Act makes provision for a purchaser to have the benefit of any insurance money payable to the vendor after the date of contract in respect of any damage to or destruction of the property, provided:

• there is no contrary stipulation in the contract between the parties; and
• the purchaser pays a proportionate part of the premium from the date of contract.

Despite this provision, it is still advisable for a purchaser take out a separate insurance policy, as the Property Act does not require the vendor to maintain the insurance or inform the purchaser that it has lapsed. Further, the policy might be voidable at the option of the insurance company or the sum insured may be insufficient to afford the purchaser adequate cover.

The insurance of buildings being constructed is usually arranged under a Contract Works Policy (sometimes called a Contractors’ All Risks Policy). The interest of the main contractor, the owner and others may be insured by one policy or there may be separate insurances held by the various parties including sub-contractors.

2. How much to insure for

Prudent investors want to know that their interest in property is fully protected and therefore should seek to insure property for its full insurable value. Most lenders taking a mortgage over the property will require that the property be insured for a sum not less than the amount they have lent. However, even where a lender only requires the property to be insured for the sum lent, the property owner should still seek to insure the property for its full insurable value to avoid underinsuring the property and the effect of averaging discussed below.

Property owners should have regular valuations of the property done as the value of the property may change from year to year. This will help the owner determine the true value of the property and avoid over or under insuring the property. This is particularly relevant where the owner has mortgaged the property and has covenanted to keep the property insured for its full replacement value at all times. If the owner fails to keep the property insured for it full replacement value he will be in breach of the mortgage and the lender may be able to call in the loan.

3. What an insurer will pay out under a policy

What an insurer will pay out under a policy depends on the type of policy and the terms and conditions of the policy. Most property insurance policies are indemnity policies and an insurer is only required to pay for the loss actually suffered by the policy owner up to the amount specified in the policy. A property owner cannot recover more than the specified amount insured on the property. Neither can an owner claim consequential loss like loss of rent, loss of occupancy, loss of business profits, wages of employees or workmen rendered idle unless the policy stipulates otherwise. Further, where a property owner has more than one policy of insurance over the same property covering the same risk, that owner cannot recover more than the actual loss he suffered. Where that owner elects to recover under one policy, that insurer can claim a contribution from the other insurers.

The insurer’s liability in respect of a property insurance claim is measured by the depreciation in the market value of the property; and in any event it will not exceed either:

• the amount insured; or
• the insurable interest of the property owner.

The liability of the insurer in respect of damaged property is not necessarily the same as the cost of reinstating the property, even where the insurer has an option to reinstate. The proper measure of what an insurer will pay out is the difference between the value of the undamaged property before the event which caused the damage and the value of the damaged property after the event which led to the damage. The undamaged value before this event is based on the market value immediately before the event which led to the damage. The property owner is not entitled to take the cost of reconstruction as conclusive evidence of the value of the property at the time of the event that caused the damage. However, the cost of reconstruction may be used as evidence of the undamaged market value immediately before the event which led to the damage. If the cost of reconstruction is used to value the property before damage, such cost will be subject to abatement in respect of:

• any sum paid for reconstruction work which is more than its value;
• any decrease in market value of the property since the time of purchase; or
• any wear and tear or damage other than that insured against which may have depreciated the value of the property.

Often older properties are not as valuable on the market as new properties. When older properties are destroyed the insured will have to construct a new property. In such a case he will only be entitled to claim the value of the older property.

Conversely, where the property is insured for less than its full insurable value and a property owner suffers partial loss an insurer may rely on the principle of averaging. According to this principle, the property owner will only recover that proportion of the loss which the sum insured bears to the value of the property. The property owner is deemed to be his own insurer with respect to the balance. For example, if a house worth $300,000.00 is only insured for $200,000.00, in accordance with the principle of averaging, the property owner will be entitled to only two thirds of any partial loss.

Generally, owners should also note that some policies of insurance provide for certain deductibles to be taken from the proceeds of insurance before it is paid out. These deductibles will further reduce the sum an insured receives under the policy.

As mentioned above, property insurance policies are renewable from year to year. Each renewable term of insurance is a distinct risk. The insurer undertakes to make good all loss or damage up to the specified amount during each current year of the insurance. So for example, if the property is damaged or destroyed by a fire and payment is made under the policy, the insurer is only liable for the balance of the sum insured for any subsequent loss during the same year of insurance. When the policy is renewed for another year, the insurer again becomes liable for the loss or damage up to the specified amount.

Property owners should note that some insurance policies contain a reinstatement clause. This clause gives the insurer an option either to pay moneys out under the policy for the loss or damage to the property or to restore the damaged property. If the insurer chooses to restore the property, the insurer must provide adequate notice to the property owner of its intention to do this and such notice is to be in accordance with the provisions of the policy document. Where an insurer elects to pay moneys out under the policy it cannot afterwards change its mind and say it will reinstate.

4. Condominium Insurance Options

The Condominium Act requires the body corporate which runs the condominium complex to insure and keep insured the condominium building in a sum not less than its replacement value against fire, hurricane and sea wave. This insurance covers the cost of repairs or replacement of the building should it be damaged or destroyed. It does not usually cover internal damage to a unit or the unit owner’s contents, fixtures or fittings. The Condominium Act imposes a duty on the body corporate to repair or rebuild the building if damaged or destroyed where the damage sustained:

• renders less than 75% of the units in the building unfit for occupation;
• renders more than 75% of the units unfit for occupation and 90% of the unit owners have within 60 days of the event causing the damage resolved that the building should be reconstructed.

Where the body corporate is under a duty to repair or rebuild, the Condominium Act requires that the proceeds of insurance be used to repair or reconstruct the building. Where the body corporate is not under a duty to repair, the unit owners will be entitled to a proportionate shared of the proceeds.

Additionally, the Condominium Act makes provision for a unit owner who has mortgaged his unit to a lender to take out an insurance policy in a sum equal to the amount secured by the mortgage. Subject to the terms of the policy, in the event of damage to the unit the insurer will pay to the lender (once its interest is noted on the policy):

• the value of the policy;
• the amount of the loss; or
• the amount that would discharge the mortgage

whichever is the least. Once the insurer has paid out under this policy and the payout has fully satisfied the amount secured, the Condominium Act permits the insurer to take an assignment of the mortgage. The Condominium Act also permits that if the payout does not fully satisfy the amount secured, the insurer can take a second mortgage over the property to secure the sum paid out.

Where the condominium building is uninsured or underinsured, the Condominium Act permits the unit owner to effect a policy in respect of any damage to his unit. The sum of insurance should be equal to the replacement value of the unit less the sum representing the amount which his unit is insured under any policy of insurance on the building.

In relation to the additional policies mentioned above, the Condominium Act states that where an owner takes out:

• insurance over his unit where the property is mortgaged; or
• insurance over his unit where the building is uninsured or insured for less than the insurable value;

these policies shall not be taken in contribution to the body corporate’s policy in respect of the building but can be taken in contribution with each other where they overlap.

As most insurance policies taken out by a condominium body corporate do not cover contents, fixtures and fittings of the unit, an owner can also take out an insurance policy over these items. It should be noted that this policy would cover internal damage to the unit.

5. Lender’s Rights

Lenders taking a charge over buildings normally require that the buildings be insured and that their interest be noted on the policy. Where a lender’s interest is noted on a policy of insurance that lender is entitled to receipt of the insurance proceeds in the event of damage or destruction to the premises.

Property owners should note that some mortgages give lenders the option of applying insurance moneys in repairing or reconstructing the property. The decision as to how the moneys are applied is not left up to the owner.

In order to protect their interest under the policy, lenders require yearly evidence that the policy has been renewed and that all premiums are paid up. Failure to provide this evidence can lead to a breach of the mortgage and can entitle a lender to call in its loan. Lenders also normally reserve the right to pay for renewals of the policy and add such sums paid to the mortgage debt.

Conclusion

With the advice of a competent attorney and insurance agent or broker, a property owner can choose the right insurance policy to protect his or her investment. In choosing his or her policy, a property owner should seek to insure his building, its fittings and fixtures and/or its contents for their full insurable value to ensure that should it be damaged or destroyed he receives the full amount possible under his policy.

Clarke Gittens Farmer is a commercial law firm, providing legal services for both domestic and international corporate and private clients. The firm has a reputation for high quality work in property, banking, corporate, commercial and business law areas. The firm is the Barbados member of Lex Mundi, the world’s leading association of independent law firms.

The information provided in this article is not comprehensive and is not intended to constitute professional legal advice.

© Clarke Gittens Farmer

All rights reserved

Flindt offers a cooked breakfast, bistro lunch, celebration cakes, chocolate and packaged goodies, savoury items and pastries!

Only 6 more days until Christmas! Let Flindt help you with your Christmas desserts!

Location: 1st Street, Holetown, St James

Opening Hours:

Monday to Friday — From 7:00 am until 6:00 pm

Saturday — From 7:00 am until 4:00 pm

Sunday — From 7:00 am until 12:00 pm

Tel: +1 246 436 2626

Fax: +1 246 432 2634

Email: orders@flindtbarbados.com

Website: www.flindtbarbados.com

Follow Flindtbarbados on Facebook…

See flyer below…

The agreement for sale regulates the relationship between the vendor and the purchaser, their obligations towards each other and their rights over the property. It governs, among other things, the nature and extent of the property being sold, the purchase price, the deadline for the completion of the sale of the property and the matters that must be attended to before the sale can be completed.

This article outlines some precautionary measures to be taken to protect each party’s interest and avoid some common traps that can lead to great emotional and financial distress in the future.

Informal contracts

While formal contracts prepared by an attorney-at-law are the usual means by which people agree to purchase real property, a valid and enforceable agreement for sale can inadvertently arise in other ways, such as by correspondence between the parties, or the payment of a deposit and the issue by a vendor or his agent of a signed receipt for it. This commonly occurs where one party is anxious to secure a commitment to the purchase from the other.

While the informal contract may temporarily provide a party with peace of mind, it can also be very problematic later on. Informal contracts often arise before the parties’ attorneys have checked the property’s title, before the parties have fully negotiated the terms of the sale or even before the purchaser has obtained finance for the purchase. Once the informal contract is in existence, the parties are bound by its terms and may be forced to proceed with the purchase or sale on terms unsatisfactory to them or risk loss of their deposit or being sued for damages.

To avoid this, each item of correspondence sent before the agreement is signed should say that it is “subject to contract”. An attorney-at-law experienced in real estate transactions should draft or vet any correspondence between the parties or their agents. No money should change hands until the attorney advises it is safe to do so.

Reservation Agreements and fees

An agreement for sale should be distinguished from a reservation agreement, by which the vendor agrees not to enter into negotiations with other prospective purchasers for a particular period.

When signing the reservation agreement (which should be expressed to be “subject to contract”), the purchaser usually pays a reservation fee to the vendor or his realtor. Before paying over any fee, the purchaser should consult his attorney who will advise him on the implications of paying a reservation fee before the agreement for sale.

The purchaser should also have his attorney review the reservation agreement to determine if the fee will be refunded should the purchaser decide not to purchase the property or, if the purchaser agrees to buy the property, whether the fee will be applied towards the purchase price.

Financing problems

Before entering into an agreement for sale, a purchaser should determine whether he has the means to finance the purchase. He should ask his attorney for an estimate of the total legal fees and Government expenses for the proposed purchase so that he has an idea of the cost of the transaction. If a purchaser is seeking finance from a lender, he should get an offer letter signed by the lender confirming that it has agreed to finance the purchase.

Deposits

A purchaser usually pays a 10% deposit towards the purchase price when signing the agreement for sale. The deposit is intended to both show that the purchaser is serious about the purchase and motivate him to complete it, since his deposit can be forfeited by the vendor if the purchaser does not complete the purchase on time.

The purchaser should consider whether the deposit may be paid directly to the vendor, to an agent of the vendor or to someone acting as stakeholder who will be the agent of both the vendor and the purchaser.

If the deposit is paid to someone as the vendor’s agent, the vendor can demand that the agent pay the deposit to him or otherwise according to his instructions at any time, and he can use the deposit before the completion of the sale. The same is true if the deposit is paid directly to the vendor. If the agreement falls through due to the vendor’s default, the vendor or his agent should return the deposit to the purchaser. However, if this does not happen, the purchaser must sue the vendor and not the vendor’s agent to recover it. This may cause problems in recovering the deposit if the vendor is insolvent or cannot be found. This is a particularly great risk if the vendor is a company formed for the sole purpose of carrying out a land development and the company is insolvent, as there will be no money available to refund the deposit, and the assets of the development company’s shareholders cannot be accessed for this purpose.

The more prudent course for a purchaser is to pay the deposit to a stakeholder (an auctioneer or a party expressed in the agreement for sale to hold as stakeholder). In Barbados, the common practice is for the vendor’s attorney to hold the deposit as stakeholder. Generally, a stakeholder must hold the deposit on behalf of both the vendor and the purchaser until the sale is completed, which is when he can pay it to the vendor. If the agreement falls through due to the vendor’s default, the stakeholder should return the deposit to the purchaser. If it falls through because of the purchaser’s default, the stakeholder should pay the deposit to the vendor. If the stakeholder improperly deals with the deposit, he can be sued by the injured party.

Each party should also consider whether he wants the right to interest on the deposit. Unless otherwise stipulated in the agreement for sale, if the deposit holder is the vendor’s agent, the agent must account to the vendor for interest. However, if the deposit holder is a stakeholder, he is entitled to keep the interest for himself unless the agreement stipulates otherwise.

Plans & boundary certificates

It is recommended that before agreeing to sell property, the vendor get a licensed land surveyor to issue a boundary certificate for the property. This will reveal whether there are any encroachments affecting the property. It may also show if the property appears to be in breach of any Town Planning regulations and if there are any paths over the property that may suggest that third parties have a right to use the property. The certificate will also reveal if the current plan of the property is still accurate and if a new plan of the property is needed. Armed with this information, the vendor’s attorney can then draft the agreement to properly address any issues raised by the certificate.

If this is not done, the purchaser’s surveyor or the purchaser’s lender’s surveyor may discover problems with the property after the agreement is signed and there may then be further negotiations, delay and uncertainty regarding the steps to be taken to rectify the problems and who should bear those expenses. If the agreement did not specifically deal with those problems, the vendor will usually have to bear these expenses if the problems are serious enough to prevent his being able to give the purchaser a marketable title to the property.

The purchaser should consider the age of the plan being offered by the vendor before signing the agreement for sale. If the plan is very old, the purchaser’s lender may not accept it, and unless the agreement for sale provides for a new plan, the purchaser will then have to bear the cost of obtaining a new plan to satisfy his lender.

Line marks

Agreements for sale should stipulate that the line marks of the property be pointed out to the purchaser by a licensed land surveyor at the vendor’s expense before the sale is completed. It is in the best interests of the purchaser that a land surveyor, who is trained to recognise boundary issues, point out the line marks so that there will be no confusion as to the boundaries of the property. When private persons do this, the result is often cases of mistaken boundary marks or marks that have been moved, which can cost the purchaser thousands of dollars when he later builds using the wrong boundary references.

Inspection

Generally, the vendor is not obliged to disclose to the purchaser defects affecting the physical quality of the property. The purchaser must have the property thoroughly inspected by all necessary professionals (at minimum, a land surveyor, and if there is a building on the land, an electrician, a civil engineer and a plumber) before the agreement for sale is signed, so that he can discover whether there are any problems affecting the property such as encroachments, or structural, electrical or plumbing problems. In this way, the purchaser can determine whether he wants to purchase the property in its current condition before he is committed, or whether he wants to negotiate a lower price, or pull out of the purchase entirely.

The purchaser should also inspect the property himself to ensure that he is satisfied with the property’s appearance and condition.

Electrical connection

Where a building is being sold, the purchaser should find out from the vendor whether the electricity supply to the property has been disconnected, and if so, the agreement for sale should stipulate the deadline for re-connection and who will be responsible. If this is not done, the completion of the sale may be delayed while the vendor attends to the re-connection or the purchaser may himself have to attend to the re-connection.

Getting the electricity supply re-connected after it has been disconnected for more than six months can be both costly and lengthy. A licensed electrician must apply to have the property inspected by the Government Electrical Engineering Department (GEED) and an inspection fee must be paid. When GEED is satisfied that the supply can be re-connected (and GEED may require that the entire building be re-wired first if it thinks fit), the Chief Electrical Officer will issue an Installation Certificate of Approval. This certificate, the details of the meter number and the requisite re-connection fee must be submitted to the Barbados Light & Power Company Ltd., which, upon request, will re-connect the supply to the property.

Even if the supply has not been disconnected before the agreement for sale is concluded, the purchaser may still encounter problems if the supply is subsequently disconnected. To avoid such problems, the agreement for sale should require that, if the supply is disconnected after the agreement is signed, the vendor must have the supply re-connected at his expense before completion.

Restrictive covenants & conditions affecting use of the property

There may be existing restrictions that affect how the property can be used or new restrictions that the vendor wants to impose. These may consist of restrictive covenants mentioned in the title deeds to the property or conditions attached to Town and Country Development Planning office permissions. The restrictions should be referenced in the agreement for sale and the purchaser should be provided with a full list of the restrictions before the agreement is signed so that he knows early on whether his plans for the property are legally feasible or financially viable. The procedures for modifying or discharging these restrictions can be lengthy and costly. Breach of the restrictions can result in lawsuits from neighbours or enforcement notices from the Chief Town Planner, so checking the restrictions early is critical.

If the property has been marketed as being sold with permission to carry out a specific development, which the purchaser plans to carry out after completing the purchase, the purchaser should ensure that the permission is still valid.

Insurance

On signing an agreement for sale, the purchaser becomes liable for any risk or damage to the property, unless the loss or damage was caused by the vendor’s fault or neglect, and must still proceed to complete the purchase.

To protect his interest in the property, a purchaser should insure the property himself immediately before signing the agreement for sale. Alternatively, the purchaser may be entitled to the proceeds of the vendor’s insurance policy (unless the agreement or the policy states otherwise) if he arranges with the vendor to pay the insurance premium from the date of the agreement for sale. However, this option may not always be available or desirable. Generally, there is no obligation on a vendor to insure. Moreover, even if the vendor has a policy in effect, the purchaser may find that the amount and terms of the policy are unsatisfactory to him or that the vendor may cancel the policy unless asked not to.

Possession before completion

While the purchaser gains an interest and certain rights over the property upon signing the agreement for sale, the vendor is entitled to remain in possession of the property until the sale is completed, and must maintain the property and treat it as a prudent owner would. However, from time to time, the purchaser is anxious to move in and start making the property his own. The agreement for sale can be varied to allow the purchaser to occupy the property before completion, or the parties may settle a separate tenancy or licence agreement to facilitate pre-completion occupation.

However, before the vendor of residential property enters into this type of arrangement, he should bear in mind that when the purchaser is already living in the property, he may have less incentive to complete in a timely manner. If the sale falls through and the purchaser does not readily leave the property, the vendor will likely have to go to Court to evict the purchaser.

The purchaser should also be cautious about entering into possession before completion. If he made improvements to the property and the sale falls through due to the vendor’s fault, he may not be able to recover the money he spent. However, the vendor may be able to recover compensation from the purchaser to make the property habitable if the purchaser defaults and leaves the property with incomplete alterations. The purchaser should also note that, unless the agreement stipulates otherwise, by entering into possession and making structural alterations or doing other acts of ownership, he may be deemed to have accepted the vendor’s title and consequently be barred from raising objections to the title.

Parties should consult with their attorneys and ensure that the agreement for sale clearly sets out who is responsible for what costs while the purchaser is in possession prior to completion and which costs can be recovered from the other party if the sale is not completed.

Delay in completion

Probably one of the most frustrating aspects of the sale process for the parties is delay resulting in the sale being completed after the completion date stipulated in the contract. Unfortunately, agreements for sale in Barbados tend to favour the vendor in this regard. The usual clause in the agreement for sale requires that the sale be completed on or before a particular date and if that date passes due to the purchaser’s default, the vendor is entitled to interest (usually at the rate of 10% per annum) on the balance of the purchase price, or the vendor can serve a notice on the purchaser to complete within a particular time period (usually 28 days). If the purchaser fails to complete within that time, the vendor can forfeit the deposit and proceed to re-sell the property to another.

While this does not mean that the purchaser is without redress since, if the delay is due to the vendor’s default, the purchaser can always go to Court to force the vendor to complete or to recover damages, this will necessarily involve additional costs and delay. Therefore, to attempt to be compensated without necessarily having to go to Court, the purchaser should discuss with his attorney the feasibility of having the agreement specify that the purchaser be entitled to interest or some other sum of money from the vendor in the event of the vendor’s delay in completing the sale.

Conclusion

These are just a few of the most common problems a vendor or purchaser may encounter on a sale of real estate in Barbados. In all circumstances before signing any document or paying or accepting any sum of money from the other party, each party should consult his attorney.

The vendor should disclose as much information as possible about the property to his attorney, including the receipt of any compulsory acquisition notices, any rights that third parties enjoy over the property and any matter affecting the use or value of the property. The purchaser should let his attorney know his plans for using the property and how he plans to finance the purchase. In this way, both attorneys will be able to arrive at an agreement which is both reasonable and beneficial to both parties, and which will not be the source of disputes later on.

Clarke Gittens Farmer is a commercial law firm, providing legal services for both domestic and international corporate and private clients. The firm has a reputation for high quality work in property, banking, corporate, commercial and business law areas. The firm is the Barbados member of Lex Mundi, the world’s leading association of independent law firms.

The information provided in this article is not comprehensive and is not intended to constitute professional legal advice.

© Clarke Gittens Farmer

All rights reserved

Missed it? Don’t worry, contact the agent using the form in this link to arrange a viewing of this new St George development.

Bougainvillea Estate comprises of 57 residential plots of land for sale and is situated on a gentle sloping hillside at Fairview in the parish of St. George.

Land areas range from 4,500 sq.ft. to 8,000 sq.ft.

Prices range from $60,000 USD to $125,000 USD.

View the full Bougainvillea Estate land listing here…

Priva

• Time: 10:00 pm until 6:00 am
• Location: 1st Street, Holetown
• Tickets: $350 BBD per person ($300 BBD per person at 1:00 am)
• What you get:
  • Special guest DJ’s
  • Open bar on house spirits, wine & beer
• VIP Tables: $500 BBD per person
• What you get:
• Bottle service of unlimited premium spirits, wine & beer
• Minimum of 6 people
• VIP Lounge: $500 BBD per person
• What you get:
• Bottle service of unlimited premium spirits, wine & beer
• Minimum of 20 people
• Website: http://www.privabarbados.com
• Email: sophia@privabarbados.com
• Call: 825-2164 or BBM: 22A8B85A

Harbour Lights (HL)

• Time: 9:00 pm until…
• Location: Black Bess Ridge, St. Peter
• Tickets: Call HL for prices
• What you get:
  • Premium Drinks
  • Bubbly bar (Moet & Chandon, Veuve Cliquot champagne on sale)
  • Retro Rewind 70s & 80s Music with fully staffed premium bar & separate DJ
  • Kes The Band (from Trinidad dropping pop, rock, reggae & their mega hits)
• Private booths are available (Call HL for more info)
• SPECIAL: Dinner at Mullins Restaurant plus HL entry: $495 BBD per person
• Subject to availability
• What you get:
• Special menu prepares by Ryan DaSilva
• VIP Parking & entrance to HL New Year’s party
• 5 minutes drive to party location
• Call Brian Gill: 436-7225

Barbados Cruising Club: Sparkle by the Sea

• Time: 8:00 pm until late…
• Location: Barbados Cruising Club, Aquatic Gap, St. Michael
• Tickets:
• $125 BBD per person for advanced tickets
• $150 BBD per person at the door
• $100 BBD for members in advance
• What you get:
• House drinks until 2:00 am
• Sky bar, dance bar & champagne beach bar
• Cash champagne bar by Stansfeld Scott
• DJ Trixta & DJ Emiro
• Face painting, a bonfire on the beach& more..
• Website: http://www.barbadoscruisingclub.org
• Call: 426 4434

2nd Street

• The regular bars will be open for business

2nd Level “Going Through The Roof” at Limegrove Rooftop

• Time: 10:00 pm
• Location: Limegrove Rooftop, Holetown, St. James
• Age limit: 21 plus
• Tickets: $350 BBD per person
• What you get:
• Premium bar
• Party favours, pyrotechnics & giveaways
• Sushi, Sliders & more from 2:30 am
• 3 DJ’s
• VIP booths: $500 BBD per person
• What you get:
• Tables with bottle service
• Minimum of 6 people
• Ultra premium bar stock
• Party favours, pyrotechnics & giveaways
• Sushi, Sliders & more from 2:30 am
• 3 DJ’s
• Complimentary parking for all ticket holders
• Ticket box offices: The Mews, Elbow Room, Sitar, Nishi and Limegrove events on 3rd floor
• Join their Facebook page

Barbados Hilton

• New Year’s Eve Dinner
• Location: The Grille Restaurant
• Price: $295 BBD per person (incl 17.5% VAT & 10% service charge)
• Click here to view the a la carte menu
• New Year’s Eve Cocktail party
• Location: Charles Fort
• Price: $250 BBD per person (incl 17.5% VAT & 10% service charge)
• Click here to view the food stations & hors d’ Oeuvres menu
• New years Eve Dinner Buffet
• Location: Lighthouse Terrace Restaurant
• Price: $250 BBD per person (incl 17.5% VAT & 10% service charge)
• Click here to view the buffet menu

Bliss

TBC: waiting on details

Beach House

TBC: waiting on details

Alleyne Real Estate, RBC Royal Bank of Canada and RBTT invite you to the launch of 57 new residential land lots for sale within Bougainvillea Estate!

Are you longing to buy your dream house lot and get away from the hustle and bustle? But, afraid of losing the convenience?

Have the best of both worlds by purchasing your house lot at Bougainvillea Estate, located just a 15 minute drive from the Warrens area.

Bougainvillea Estate is situated on a gentle sloping hillside at Fairview and comprises of 57 lots; many of which offer country views and sea views.

Planning permission has been received and construction of the development roads are underway and scheduled to be completed by March 2012.

Come to a free on site information session for this new St. George development…

When?

Saturday, 10th December 2011 from 9:30 am until 12:00 pm.

What size are the lots?

Land lots range from 4,500 square feet to 8,000 square feet.

What is the price range?

Lots are priced from $60,000 USD to $125,000 USD.

Is there financing?

Financing is available from RBC Royal Bank of Canada and RBTT.

Where is Bougainvillea Estate?

Please contact Paul at Alleyne Real Estate for directions and any additional details:

t: 246 233 0240
e: sales@jalbarbados.com

Click the link to view a flyer for the Bougainvillea Estate launch…

Here’s the full price and availability list for Bougainvillea Estate lots…

View the site plan for this new development…

So we’re excited to announce the launch of Webshop.bb and we’d like to introduce you to our Web Shop services. We use a Holistic Platform™ whereby the platform acts as our overall product which allows our services to exist under one roof. Web Shop services include rock solid back-ups, support, email management, social network updating, blog uploading (SEO included), monthly newsletters and PPC marketing. We build your website for FREE and help you to build and manage your website using an array of marketing services.

Have a look at our portfolio and get your site built today!

Have a look at our packages and let us know what you really want to achieve so we can help you decide which services are best for your business!

5 tips for rental property investors

Here’s a list of the top 5 tips that we think an investor interested in the rental property market should consider:

1. Research all property investment options to weigh which is best for you. For example, you may prefer a long term rental home, commercial building or a holiday rental.
2. Choose your advisor carefully. Research which professional you would like to gain advice from. Speak to a neutral body to gain recommendations on which company is best suited in the property investment area and who will put your interests first rather than their bank accounts.
3. Location. Consider the area where you are buying. Certain areas are better suited for certain types of rental revenue.
4. Financing. Be sure to put pen to paper and go through your finances. Speak to a financial advisor and ensure you have cash flow necessary for the off peak season or short vacancy spell that may occur in between long term renters. If you are taking out a mortgage, this step is critical to ensure you are covered.
5. Maintenance. Be sure to formulate a team of professionals who you can rely on to maintain your property; i.e a plumber, an electrician, gardener, housekeeper and handy man to name a few. There are many smaller guys who do a great job so ask around and complete your due diligence before confirming a team. If you prefer to have one point of contact, you could always look into hiring a property manager.

The Google system is not perfect, and that’s how blatant offenses like this often slip through the net. It will be interesting to note how long this site manages to keep ranking for “real estate barbados”. I’ve checked it from several locations and screen grabbed the page here for posterity below. Let me know if your seeing similar strange results in the comments section below.

Another thing worth mentioning is that divefree.net is registered to a company called Axses. I think axses.net produce quite a few local websites. Be careful of working with website shops who employ spammy SEO tactics. If you get caught by Google, this can seriously damage your rankings.

If you’re a website business owner relying on SEO, you should also look into other marketing strategies and channels. SEO is very unreliable as you are subject to the whims of Google algorithm.

How different some things are now! Have a read and leave your feedback in the comment section below this article…

Barbados is a small Island in the Eastern Caribbean of 166 square miles in area (21 m x 14 m). The Island has a population of 270,000 of which 104,000 reside in the capital Bridgetown. In 1966, Barbados was granted independence from the U.K. and since then has been a Member of the Commonwealth, with the Queen represented by the Governor General.

Barbados enjoys a stable, democratically elected Government with an infrastructure recognized as one of the best in the Region and, the legal and Banking Institutions have been well developed to serve in domestic and expanding international business communities including a thriving Offshore Financial Sector.

Barbados traditionally has strong business and social links with the U.K. and Canada along with the USA and CARICOM nations of the Region. The domestic, business and tourist sector, are well served by an international Airport, currently undergoing a USD$100M upgrading in its facilities.

The economy of Barbados is recognized as being sound, with the traditional Sugar Industry being replaced in its importance by the expanding Tourism Industry, Light manufacturing and the Offshore Financial Sector. The currency of Barbados is the Barbados Dollar and is directly linked to the USD at a rate of 2:1.

In recent years, the Government has actively encouraged overseas investment by incentives in Hotels and Real Estate and consequently the Island has seen a boom in the Construction industry as developers have been quick to recognize that the Island offers all the economic conditions to deliver the returns required to attract investment in this sector, along with the obvious benefits of an idyllic tropical climate with an excellent infrastructure and high quality restaurants, golf courses and a wide range of leisure activities.

The West Coast of Barbados in particular has seen perhaps the biggest areas of investment in recent years. The Sandy Lane Hotel and Golf Complex, Port St. Charles, Royal Westmoreland and Sugar Hill are examples, along with many magnificent homes have all been built in the last 10 years.
Statistics from the Central Bank of Barbados show that overall on the Island, property values have increased by 20%, however, on the West Coast during this period the price of property has increased by well over 100% where the property has beach frontage.

Currently there are several beachfront projects in progress on the West Coast, with several more due to commence construction in the next year or so to meet the demands that is currently being demonstrated.

Prospective purchases are being offered attractive rental returns to supplement the capital appreciation of the property, should they wish to maximize their return on the investment.

To the non-resident, there are no restrictions on purchasing property in Barbados nor punitive purchase taxes.

Mortgage facilities from International Banks on the Island are available for prospective purchasers of Real Estate.

As stated earlier, the Government of Barbados attaches great importance in the growth of the Tourist Industry in tenders with encouraging overseas business to invest in Barbados. It is anticipated that the hosting of the World Cup of Cricket in Barbados in 2007 will certainly focus the attention of the World Media in visiting Barbados in this period, and many construction projects are being developed to be ready for this event.

In conclusion, Barbados offers the prospective investor an idyllic tropical climate governed by a stable democracy that actively encourages overseas investment in Real Estate. The construction industry on the Island is already booming and the economic conditions in Barbados promise excellent returns to the Real Estate Investor in Barbados for future years.