Notary conducts due diligence at the Tax Authority
Agency: Tax Authority (Direction Générale des impôts- Service de la Conservation Foncière)
The notary should perform due diligence before obtaining authorization to conduct a property survey by requesting a certificate of the current legal status of the property (un certificat foncier) from the Tax Authority (DGI). The certificate will include all useful information regarding the property and its history since its registration at the DGI. The notary will be able to know whether the seller is indeed the owner of the property and whether the property is encumbered with mortgages or liens.
Time and cost: 7 days, HTG 21
Obtain authorization to conduct a property survey
Agency: Court of First Instance (Tribunal Civil de la Jurisdiction)
For conducting the property survey required in Procedure 2, it is necessary to obtain an authorization from the Court of First Instance (Tribunal Civil de la Jurisdiction) where the property is located, and the authorization of the “Commissaire du government”. For obtaining the approval, it is necessary to present a complete file that will include the bill of sale of the property as well as the previous survey. Legal basis: Art 22 Decree of February 26, 1975 about the land survey.
Time and cost: 60 days, no charge
Survey of property
Agency: Land surveyor (arpenteur-géomètre)
A survey of the property is required every 10 years, but in practice due to land insecurity, the notaries request a survey that dates no more than 3 years. A public surveyor does the survey in question for a specific commune. Because of the issues related to possession and ownership of real estate in Haiti, most buyers choose to have a survey of the property they are purchasing. All persons whose property shares a common border with the property will be invited to witness the survey.
Time and cost: 26 days, HTG 15,000
The cost of the survey of the property depends on the area:
- HTG 10,000.00: 0 to 500 m2
- HTG 15,000.00: 500 to 1000 m2
- HTG 25,000.00: 1/2 tile
- HTG 50,000.00: 1 tile
Notary public prepares the sale agreement
Agency: Notary
The titles are deposited with the notary public, who will prepare the bill of sale.
By law, notary fees are set to 1%. However, the ASNOP (Notary Association of Port-au-Prince) charges typically 2% of sale price.
The notary collects the fees and taxes and directly pays the different State Agencies.
The seller pays the added value tax (VAT), but it is held by the notary public until the notary decides to transfer the amount to the “Direction Générale des Impôts” (DGI). In no event shall the notary remain in his possession the VAT for more than thirty ( 30) days after the operation (Art 105 Decree of 29 September 2005 amending that of 29 September 1986 relating to income tax).
VAT is according to the following categories:
- For the sale of property by a limited liability corporation (Societe Anonyme), the rate is 15% of the sale price
- For the sale of land without building or house, the rate is 10%, after applying a discount of 25 % on sale price.
- For the sale of any property were construction was built after the land was bought the rate is 2.5% of the sale price.
- For the sale of land from an allotment the rate is 4 %.
- For the sale of any property including land and building were improvements or transformations have been made, the rate is 10% after applying a discount of 50 % on the sale price.
- For the sale of building or house built on state land when sailing according to the laws, the rates are 2.5% of the sale price.
Time and cost: 18 days, HTG 57,009.39 (Notary fees: 2% of the property value)
Obtain avis de cotisation and pay for registration
Agency: Commercial bank
In order to submit the sale agreement for registration, an “avis de cotisation” is prepared by the DGI, calculating and writing manually on the side of the sale Act the amount to be paid. The sale act should be handwritten, but the DGI accepts copies written with a PC with the “handwritten” style (for transfers between individuals or firms).
The avis de cotisation is typed with a typewriter on an official form (3 copies). The notary keeps the top of the form, and the bottom is left to the DGI. The fees are the following:
- Montant principal: Droit fixe: HTG 2 ; droit d’enregistrement: 3% of sale price; droit de transcription: 1% of sale price; droit d’ecriture: HTG 6 per each group of 25 lines (or fraction)
- Droit de certificat: HTG 2.5
- Taxe suplementaire: 1% of the amount paid in droit d’enregistrement and droit de transcription + 1 gourde
- Droit special ad-valorem: 0.2% of the fees and taxes paid to the Tax Authority (DGI)
- Droit proportionnel du timbre: 0.2% of the property value + HTG 1
Once the avis is prepared, the notary pays the amount at the BRH (Banque de la Republique d’Haiti) in the DGI, and the bank signs the Avis de cotisation.
Time and cost: 1 day, HTG 121,100.46
- Fixed fee (droit fixe) of HTG 2;
- 3% of property value (enregistrement);
- 1% of property value (transcription);
- certificate fee (droit de certificat) HTG 2.5;
- deed fee (droit d’ecriture) HTG 6;
- supplementary tax: HTG 1 + 1% of the cost of enregistrement and transcription (Taxe supplementaire);
- 0.2% of the fees and taxes paid to the Tax Authority (DGI) (droit special ad-valorem);
- 0.2% of the property value + HTG 1 (droit proportionnel du timbre).
The sale agreement is recorded and transcribed at the Tax Authority (DGI)
Agency: Tax Authority (Direction Générale des impôts- Service de la Conservation Foncière)
Transfer tax is set in article 142 of the « loi du 28 septembre 1977 sur l’enregistrement et la conservation fonciere ». The notary has received the funds for the procedure before and realizes the follow-up. A one-month frame is established by law for the notary to transfer said funds collected on behalf of the state to the Direction Generale des Impots.
With the avis de cotisation signed by the bank, the notary can submit the dossier to be recorded at the records office of the Direction Generale des Impots. The registrar will write with a pen on the Acte de vente: the Number of the avis de cotisation and the date of payment. The notary keeps the original of the avis de cotisation.
The transfer is then registered by hand in a book (“Repertoire d’entrée”). The sale act is later sent to the Bureau de Transcription, where employees copy by hand the sale act into books. Once the sale act has been copied, it is returned to the notary.
Local branches of the DGI in the country (“bureaux deconcentres”) send the information to the central office for registration.
Time and cost: 225 days, fee: 3% + 1% of the property value, already paid in procedure 4
