Completing a St. Croix Real Estate Transaction in the Virgin Islands
Although many people moving to the Virgin Islands have purchased or sold properties in other areas, real estate transactions in the United States Virgin Islands can seem different if you are not familiar with the process.
Below we have listed several items that take place during the transaction that may be a bit different from what you have experienced in the past. We hope that you find this helpful, and if you have any questions, please do not hesitate to give us a call.
Who Pays for What?
While most everything in a real estate transaction is negotiable, here is a list of the fees associated with a real estate transaction and which party typically pays for each item.
Close all real estate transactions, and both parties have lawyers
Attorney fees to prepare closing documents including deed, tax clearance letter, and title review-Each side pays for his own attorney's fees.
Usually the seller pays all real estate sales commissions.
Earnest money deposits
Unlike in the United States where earnest money deposits may only be a few hundred dollars, in the Virgin Islands the typical earnest money deposit for property is approximately 10% of the purchase price and is credited to the purchase price at closing.
The buyer will pay for a title search-- approximate cost is $125.
Owner's title policy
The buyer pays for the title policy.
The buyer will traditionally pay for all recording fees.
The title company will require a survey, and typically the buyer pays for the property survey.
In the Virgin Islands, inspections do not come with home warranties. Home inspections are not required but recommended for home purchases. The buyer pays for the home inspection.
This is a tax placed on the contract price of the property and is traditionally paid by the seller.
The transfer tax is as follows:
2% for property valued up to $350,000
2.5% for property valued from $350,001 to $1,000,000
3% for property valued from $1,000,001 to $5,000,000
3.5% for property valued over $5,000,001
When making a major life decision such as purchasing Virgin Islands Real Estate, it is extremely important to have the best availabe information at hand as well as the best agent acting in your best interest. The team at Coldwell Banker Sr. Croix Realty can offer you just that with a personal approach to your respected needs in buying St. Croix Real Estate.