Jos Deuling,  Sunday, 17 March 2013

 

If you are planning to buy a house in Suriname, it is important to be aware of the rules. Can I get a mortgage? What is the role of the broker and notary? What documents do I need? Questions that need to be answered before you start looking for a home.

I confine myself in this article to buying an existing home. I'm not talking about building your own house.

I have grouped the information into two sections: 1. 'Prior to the purchase' and 2. 'The Buying Process'.

1. Prior to the purchase

What really matters when financing a home? What is the role of the notary? Do I need an agent?

The mortgage

If you want to get a mortgage in Suriname, you need a fixed income. In the application, you need an employer declaration and a copy of your pay slip. The home serves as collateral for the mortgage lender.

The mortgage rate in Suriname is pretty high. Banks ask between 12% and 14%. Individuals may give a mortgage in Suriname. Perhaps you can close a better deal with a private person.

For many Surinamese people, a regular mortgage is too expensive. The Surinamese government tries to meet people with the so-called subsidized mortgage.

Foreigners who want to buy a holiday home in Suriname better get a mortgage in their home country.

Suriname has no mortgage interest deduction.

A full mortgage is not possible. You must finance at least 30% of the purchase price yourself. The maximum mortgage is 70% of the purchase price.

The maximum duration of a regular mortgage is between 15 to 20 years. For a subsidized mortgage 25 years.

The notary registers the mortgage deed in the mortgage office. The cost of a mortgage deed amount to around 5.5% of the loan amount.

When applying for a mortgage you need the following documents:

1. A valid ID
2. An employer's statement
3. Salary slip and bank statement of the payment of the salary
4. Extract from the register of residents
5. Declaration on nationality

Role of the notary?

A notary provides the following services:

1. Research on the seller and on possible mortgages and seizures on the property.
2. Check the title deed for any obligations. Title deed obligations are transferred to the next owner. There may be a clause e.g. that the property may only serve as corporate housing.
3. Research on easements. For example, free view, right of way, etc.
4. Verification of the presence of all required documents.
5. All stakeholders (owner or owners) must sign the deed of sale. If it’s a property from an inheritance, then all heirs must sign the deed of sale. The notary will monitor this process.
6. Advice on the financing of the house.

It is wise to involve early on a notary. This can save you a lot of trouble. The notary fee is a minimum of 1% and a maximum at around 2% -3%.

You must check the work of the notary properly. A notary may also make a mistake.

The real estate agent

In Surinam, there are recognized agents and agents without an officially recognized status. Real estate agent is not a protected profession. Anyone can call oneself agent. If you can prove that you have extensive knowledge in the brokerage field, then you can be sworn as a broker. This is done through a procedure before the court.

Perhaps it’s wise to get a certified estate agent. You can also do business with a company like Suritrust. It's is a 100% subsidiary of De Surinaamsche Bank. It offers also real estate services. A real estate agent should be well aware of the local real estate market. He can assess the best price you have to pay for a home.

Valuations

To be entirely sure, you can have a valuation carried out in advance. In Suriname, there are various accredited appraisers. The appraiser looks at the structural condition of the house. The situation on the housing market is weighed in, and the appraiser also looks at possible legal implications and restrictions.

If you apply for a mortgage, than the valuation report must not be older than 2 years.

Flooding?

You must certify in advance whether the street or region will not be flooded by rainfall. Check this, if possible, during the rainy season.

Can foreigners own property?

As a foreigner, you may own a property in Surinam. However, there are restrictions for the so called ‘grondhuur’, the hire of land. For this, you have to be a resident and have the Surinamese nationality.

2. The Buying Process.

What about the buying process?

The formal sale process is set in motion by the notary and lasts 2 to 3 weeks.

The buying process revolves around the following three documents: the purchase agreement, the deed of transfer and mortgage.

Purchase Agreement

In the purchase agreement, both buyer and seller put in writing the appointments that have been agreed. There are also contingent conditions included. If the buyer can’t get mortgage, he may rescind the purchase agreement free of charge.

Often buyer and seller establish a preliminary purchase agreement. In a preliminary purchase agreement, the buyer has several days to to nullify the transaction without cost.

At the moment the purchase is final, the notary will draw up the deed of transfer. In case of a mortgage, the notary will also while make the mortgage deed.

Deed of transfer

The deed of transfer must be signed by both parties. After signing, the buyer owns the house. The notary will register the deed of transfer in the public register of the mortgage office.

Mortgage

If you finance your home through a mortgage, then you immediately have to sign the mortgage after signing the deed of transfer. The mortgage is an official notarial deed. It is registered in the public register in the mortgage office.

If you are living abroad, then you do not have to be present during the transfer. The notary will prepare the paperwork, and you can authorize someone to sign on your behalf. If you don’t have have any friends or family in Suriname, you can arrange a representative via the notary.

Above is the summary of all the information I've found on the Internet. If there are errors in this article then please mail me on info@affidata.com.