Property Transfer Guide: Steps to Buying and Selling in Guyana

Property transactions in Guyana involve unique procedures that differ from those in many other countries. Whether you're buying or selling property, understanding this process is essential to ensure a smooth and legally sound transfer.

The Guyanese Property System: An Overview

Guyana maintains two primary systems of land title registration:

1. The Transport System: This older system is still used for most properties, especially in Georgetown and other established areas. Under this system, property transfers require a legal process called "passing transport."
2. The Land Registry Act System: This more modern system is used mainly for newer developments and involves Certificates of Title rather than Transports.

Understanding which system applies to the property you're buying or selling is the first step in navigating the transfer process.

Before You Begin: Due Diligence

Before initiating a property transfer, both buyers and sellers should conduct thorough due diligence:

For Buyers:

• Verify Ownership: Confirm the seller is the legal owner with the right to sell
• Title Search: Conduct a search at the Deeds Registry to verify the title is clear
• Check Encumbrances: Identify any mortgages, liens, or restrictions on the property
• Property Inspection: Assess the physical condition of the property
• Survey Verification: Ensure boundary markers match the official survey plan
• Zoning and Land Use: Verify permitted uses for the property
• Tax Status: Confirm all property taxes are current

For Sellers:

• Gather Documentation: Locate your transport/title, survey plan, and tax receipts
• Resolve Encumbrances: Clear any liens or other claims against the property
• Property Valuation: Obtain a current market valuation
• Tax Compliance: Ensure property taxes and rates are paid up to date

The Property Transfer Process: Transport System

If the property falls under the Transport System, these are the typical steps involved:

1. Agreement of Sale: The buyer and seller sign a written agreement specifying the terms of the sale, including price, deposit amount, and completion timeline. This is typically prepared by an attorney.
2. Deposit Payment: The buyer pays a deposit (usually 10% of the purchase price) to secure the property.
3. Title Verification: The buyer's attorney conducts a thorough search at the Deeds Registry to verify the seller's ownership and identify any encumbrances.
4. Preparation of Transport: The seller's attorney prepares the transport document, which includes:
   • Description of the property based on its survey plan
   • Details of the seller and buyer
   • Purchase price
   • Any conditions or restrictions
5. Advertisement: The intention to transfer the property must be advertised in:
   • The Official Gazette for three consecutive weeks
   • A daily newspaper (traditionally Saturday's edition) for three consecutive weeks
   This public notification period allows any person with a valid claim against the property to come forward before the transfer.
6. Objection Period: After the final advertisement, there is a 10-day period during which objections to the transport can be filed.
7. Passing of Transport: If no valid objections are received, the buyer and seller (or their attorneys with Power of Attorney) must appear before a judge of the Supreme Court of Guyana on the scheduled date to execute the transfer.
8. Payment of Balance: The buyer pays the remaining balance of the purchase price.
9. Fees and Taxes: Various fees must be paid:
   • Stamp duty (typically 4-5% of the purchase price)
   • Capital gains tax (if applicable)
   • Legal fees
   • Registration fees
10. Registration: The transport is registered with the Deeds Registry, completing the transfer of ownership.

The Property Transfer Process: Land Registry System

For properties under the Land Registry Act system, the process is somewhat simplified:

1. Agreement of Sale: Similar to the Transport System, a written agreement is signed.
2. Deposit Payment: The buyer pays the agreed deposit.
3. Title Verification: The buyer's attorney verifies the Certificate of Title at the Land Registry.
4. Preparation of Transfer Document: A transfer form is prepared rather than a transport document.
5. Execution of Transfer: Both parties sign the transfer document in the presence of witnesses.
6. Payment of Balance: The buyer pays the remainder of the purchase price.
7. Fees and Taxes: Similar fees and taxes are paid as in the Transport System.
8. Registration: The transfer is registered at the Land Registry, and a new Certificate of Title is issued to the buyer.

The key difference is that the Land Registry System does not require advertisement or court appearances, making it generally faster and more streamlined.

Special Considerations

Purchasing Mortgaged Property

If the property has an existing mortgage:

• The mortgage must be discharged before the transport can be passed
• Buyers should work with the seller's bank to coordinate the mortgage payoff and release
• Sometimes arrangements can be made for simultaneous transactions, where the buyer's payment directly services the seller's mortgage

Foreign Buyers

Non-Guyanese citizens can purchase property in Guyana, but there are additional considerations:

• Foreign buyers may need approval from the Lands Commission
• Special permits may be required for purchasing certain types of properties
• Foreign currency transactions may need approval from the Bank of Guyana
• Additional documentation, such as proof of identity and source of funds, is typically required

Purchasing Unregistered Land

Some properties, particularly in rural areas, may not have formal title documents. In such cases:

• The process of "first registration" must be completed before a transfer can occur
• This may involve proving possession for a statutory period (typically 12 years)
• The process requires surveying, documentation of historical ownership, and potentially court proceedings
• First registration can be lengthy and complex, requiring specialized legal assistance

Common Pitfalls and How to Avoid Them

• Inadequate Due Diligence: Always conduct thorough title searches and property inspections before proceeding.
• Relying on Verbal Agreements: Ensure all agreements are in writing and properly executed.
• Boundary Disputes: Verify survey plans and boundary markers before purchase.
• Hidden Liens: Conduct comprehensive searches for mortgages, judgments, and other encumbrances.
• Incomplete Documentation: Ensure all required documents are in order before scheduling transfer proceedings.
• Tax Complications: Understand all tax implications and ensure proper payment of stamp duty and other taxes.
• Proceeding Without Legal Representation: The complexity of Guyanese property transfers makes professional legal assistance highly advisable.

Costs Involved in Property Transfers

Budget for these typical expenses in a Guyanese property transaction:

• Legal Fees: Typically 1.5-2% of the purchase price for each party's attorney
• Stamp Duty: 4-5% of the property value
• Registration Fees: Vary based on property value
• Advertisement Costs: For publication in the Official Gazette and newspapers
• Capital Gains Tax: Applicable to the seller if the property has appreciated in value
• Survey Costs: If a new survey is required
• Valuation Fees: For property appraisals

Conclusion

Property transfers in Guyana involve unique procedures that require careful navigation. While the process may seem complex, understanding each step and working with experienced professionals can help ensure a smooth transaction.

Whether buying or selling, it's advisable to work with a qualified attorney who specializes in real estate transactions and understands the nuances of Guyana's property laws. With proper guidance and preparation, you can successfully complete your property transfer and protect your investment.