Lawyer executes sale-purchase agreement
Agency: Lawyer
While not mandatory, it is common practice for a lawyer to advise the parties on the transfer process, in addition to drafting and executing the sale-purchase agreement. The law states a fee of 0.8% for both parties but in practice lawyers round it up to 1% and most of them charge 1% to each of the two parties.
Time and cost: 1 day, GYD 964,690.82 (2% property value (1% for seller+1% for buyer))
Obtain official valuation on the property
Agency: Chief Valuation Office
Parties call the Chief Valuer Office to make an appointment. The valuator comes either the same day or the following day to make an assessment and presents the parties with a document attesting to the amount. It is important to note that the valuation may be completed by the state valuation office or by a private valuator (in which case the cost would be higher). Although there is no official cost attached to the valuation by a state valuation officer, it will be necessary to pay the officer transportation fees – approximately 5,000 GYD.
Time and cost: 5 days, GYD 48,234.54 (0.1% of property value)
Obtain a Certificate of Compliance from the Inland Revenue Department
Agency: Internal Revenue Department of the Guyana Revenue Authority
A Certificate of Compliance is obtained at the Inland Revenue Department certifying that all taxes in relation to the parties have been paid, or that they pay any outstanding taxes at that time. In case any capital gains arise, a 20% tax on capital gains will be applied to the transaction.
- A copy of the transport/lease/title deed;
- An agreement of sale and a current valuation for the property;
- Where the property was acquired prior to 1.1.1991, the valuation as at 1.1.1991 as well as current valuation;
- A copy of the receipt of agent/commission fees or legal fees paid;
- A National Identification Card or valid Passport;
- A Power of Attorney, if acting on behalf of someone;
- Documentary evidence of capital improvement done after acquisition or 1.1.1991 value of asset and other expenses incurred in the transaction.
In addition to the documents listed above, the taxpayer must submit to the Guyana Revenue Authority (GRA) his/her Taxpayer Identification Number (TIN), his/her tax returns (including the return for the preceding year of income) and a completed application form provided by the GRA.
After the documents listed above are submitted to the GRA to the satisfaction of the Authority, the Certificate of Compliance can be issued.
Time and cost: 5 days, no charge
Obtain a Certificate of Rates and Taxes from the relevant local tax authority
Agency: Local Tax Authority – City council
A Certificate of Rates and Taxes is obtained from the relevant local tax authority certifying that all rates and taxes in relation to the property have been paid in full. The certificate is necessary in order to register.
Time and cost: 2 days, GYD 1,500
Lawyer lodges the transfer instrument with the Registrar of Lands
Agency: Registrar of Lands
The required documentation is lodged with the Registrar of Lands. Taxes and registration fees are calculated. Lodging the documents with the registry takes one day but the time the lawyer needs to prepare these documents brings it up to 3-4 days.
The documentation shall include:
- Transfer instrument signed by an attorney (obtained in Procedure 1)
- “Affidavit of the vendor” in which vendor confirms his ownership and that he sold the land for this amount. This is signed and sworn before the Commission of Oaths
- “Affidavit of the purchaser” in which purchaser confirms he bought the land for this amount. This is also signed and sworn before the Commission of Oaths
- Compliance document from the Inland Revenue Authority (obtained in Procedure 3)
- “Rates and Taxes Certificate”, which is the certificate of compliance with local taxes (obtained in Procedure 4)
- Valuation of the land (obtained in Procedure No. 2).
The amount to be paid as filing fees and stamp duty at the Deed’s Registry is 2.5% of the value or the purchase price of the property to be transferred. This amount is stipulated by statute so that the parties can pay immediately upon the filing of the relevant documents. It is a common practice for the staff at the Deed’s Registry to calculate the fees in your presence to verify the amount to be paid. There is no document required to pay the stamp duty and filing fees. The fees can be paid when the relevant documents are being filed since it is a fixed percentage.
Time and cost: 4 days, GYD 1,205,863.52 (2% property value (stamp duty) + 0.5% of property value (registration fee))
Search and typing of Certificate of Title
Agency: Registrar of Lands
After the documents are filed and filing fees paid, the matter goes through a general query stage where the staff of the Land Registry checks to ensure that the property is not encumbered, affidavits are in order etc.
Once the documents are in order the matter is then sent to be advertised in the Official Gazette for two (2) consecutive weeks and if there is no opposition raised it is then passed before the Registrar of Deeds or the Deputy Registrar of Deeds.
The final deed can be uplifted at the Deed’s Registry approximately one (1) week after it is passed.
Time and cost: 30 days, already paid in Procedure 5
Seller must inform the City Council of the change of ownership
Agency: City Council
According to Section 211 of the Municipal and District Council Act, Chapter 28:01, the new owner must inform the City Council of the change of ownership and submit a copy of the deed within three months after the deed is registered.
Time and cost: 1 day, no charge
