Comparing the Roatan purchasing process to buying in the US highlights various similarities and differences, underscoring the importance of knowledge. While the relaxed island lifestyle is attractive, being informed is crucial to prevent frustration and be prepared for what lies ahead:
What are the key differences in the process of purchasing a property in North America (Canada & the U.S) and Honduras?
1. Choosing a Realtor.
RRA (Roatan Realtors Association) are Brokerages and their agents that work under the same National Realtors Association (NAR) Code of Ethics as in the States and Canada. Here anyone can sell real estate with no education or license required, so be careful and choose a realtor that is part of RRA. RRA agents are also the only realtors on the island that can access the MLS.
2. Who can buy in Honduras, what can they buy, and can you live full time?
The same as in the states buyers own Fee Simple. You are granted the highest level of ownership of the land, building/s and every permanent structure, owned outright and sell outright without limitations (except if imposed by the developer or local zoning ordinances). This is not true in many foreign countries, such as MX.
You can purchase up to .74 acres of land with no residency or corporation requirements. You must be a resident or form a corporation with a Honduran citizen to purchase .75 acres or more.
Honduras allows permanent full time residency under several categories including retirement, investment and others. I cant speak to all other Countries, but each country has there own requirements and limitations and many are much more strict than Honduras. Don’t assume because you can purchase somewhere you will be allowed to stay automatically.
3. Commissions…who pays and why so much?
Similar to north America, seller pays, but 10% for properties under $1M and 8% for over $1M
We are also full service realtors working beyond the typical North America agent, including facilitations of duties a title company does and so much more…walking people through the entire process of relocation to a foreign country.
4. What are the major differences in property financing options available to buyers in the U.S. versus Honduras?
For citizens of North America, cash is really your only option. It may come as a surprise to folks, but US banks aren’t going to lend outside of the states. HN bank loans are available for HN citizens (and some banks are starting to offer loans to legal residents) , however at a much higher interest rate and the process long and drawn out even up to 6 mos.
In the states an agent typically requires a pre-qualification letter from a bank before a property search is even initiated, and definitely need to show proof of funds or pre-qualification letter when making an offer. Here that isn’t required, but before initiating a home search here verify what funds you have for a cash purchase. It may be coming from the sale of a N. America property, home equity line of credit, ect. Don’t loose your earnest money for a lack of being able to produce closing funds in a timely manner.
5. What to expect after buying your home in Roatan?
There are a few markets in North America that typically sell furnished homes, but in large, this is not the common. Know what’s included in the sale and plan accordingly. What to buy here, what to bring in a suitcase and what you may want to have shipped down.
Utilities…the process of changing a name on RECO is daunting. We offer this service at RE/MAX. But like the process of getting a tile, expect island time and RECO and Water bills are hand delivered. New electronic payment options are becoming common, but about 10 years behind N. America
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