Real Estate in St Lucia ownership

Le Paradis real estate will include luxurious one, two and three bedroom condominiums for whole ownership.

• One bedroom condominium (approximately 1,370 sq.ft including external balconies) from $600,000 to $650,000
• Two bedroom, 2 bath with lock-off capabilities (approximately 1,980 sq.ft. including external balconies) is $905,000
• Three bedroom, 3 bath with lock-off capabilities (approximately 2,900 sq.ft. including external balconies) is $1,270,000

The Elite Property Collection Residence Club offers a 2 bedroom condominium with 1/4 share ownership with all the benefits of whole ownership for only $288,000.00. Membership in the Private Residence Club allows condominium usage 3 months of the year in all seasons.

Ownership FAQs

What is the deposit schedule?

The deposit schedule is as follows:

• US$10,000 refundable deposit holds the property for 14 days
• 30% of purchase price within 14 days of the site visit, less the Reservation Fee (5% of this sum will be held in Escrow)
• 20% of the purchase price due upon completion of foundation work
• 25% of the purchase price due upon commencement of roof work
• 25% of the purchase price due at closing and transfer of title

What are the financial and tax incentives available?

The developer has obtained the following financial and tax incentives for the benefit of purchasers:

• Income tax and withholding tax exemption on the income earned from the rental of condominium units for condominium owners;
• Alien landowner’s license fee waiver for the initial purchaser of condominium units;
• Stamp duty, income tax and vendor’s tax exemption on the sale of the condominium units (first conveyance only); and
• Pre-negotiated rates for local legal service.
• Property Tax: Awaiting approval letter for Property tax waiver as at 31 August 2007.

What is an Alien Landowner’s License and how do I obtain it?

St. Lucia law regulates the holding of land by aliens and alien companies in St. Lucia. Individuals who are not St. Lucia nationals are required to apply and maintain an Alien Landowner’s License. The panel of lawyers will assist with the application process and property ownership planning questions. Of course, buyers may use any counsel of their choice. The process usually takes about four months and should be started shortly after execution of the sale and purchase agreement and payment of the 30% deposit.

What financial assistance is available, both for the staged payments and upon closing of the sale of the unit?

DCG Properties Ltd. has arranged for financing of the purchase with reputable local lenders. Interested buyers should ask the sales consultant for details.

Can I sell the property after I make my first payment?

Yes, the property can be sold subsequent to the first payment on the unit, subject to the terms and conditions set forth in the sale and purchase agreement. These terms provide that unit owner may not advertise, market, list for sale or otherwise promote the unit for sale prior to closing on the sale of the unit. Also, unit owner may not sell or assign the purchase agreement prior to closing on the sale of the unit without the consent of the developer, which consent will not be unreasonably withheld.

Is a buyer required to enter into a rental program agreement at Le Paradis?

The decision whether or not to participate in a rental program is voluntary and entirely up to the discretion of the individual owner. Owners are not required to place their unit in any rental program, use the rental services of the developer or anyone selected by the developer, or rent their unit directly or with the assistance of a local agent.

What are the options available for rental of my unit?

Ownership may include the opportunity to place your home in a rental arrangement. The unit owner has 3 ways to rent the unit:

• A unit owner may rent the unit directly to third parties, without the assistance of a local agent or the hotel rental program;
• A unit owner may rent the unit with the assistance of a local rental agent, and the rental program manager can be of assistance in contacting local rental agents by providing a list of local real estate brokers who assist in rental of properties; and
• A unit owner may include the unit in the rental program affiliated with the developer and managed by the branded hotel manager, further details of which can be provided by the rental program manager.

What is the FF&E/OS&E Reserve and what is it used for?

The furniture, fixtures and equipment and operating supplies and equipment in the unit must be maintained in a manner and standard consistent with a first-class resort operation. Each unit owner will be responsible for the cost of repair and replacement of the FF&E and OS&E in the unit. The hotel operator will collect from the owner an annual amount of 5%of the Gross Unit Rental and use this reserve to perform such repairs and replacements when the hotel operator determines that such repairs or replacements are required. Of course, the unit owner remains responsible for the cost of any required repairs or replacements that exceeds the available reserves, subject to prior notice to the unit owner. At the time of sale by the owner any reserve held will be returned to the owner and the new owner will be responsible for creating his own reserve, by the same method.

Will a unit owner own any part of the resort beyond an interest in an individual condo unit?

Each unit owner’s interest will be limited to the ownership of their individual unit and an on-exclusive proportional percentage of the condominium common and limited common elements. The unit owners will not have any ownership interest in or receive any revenue from the hotel, the hotel amenities, the spa, the golf course or any other part of the resort.

How will a unit owner be assured access to the resort amenities?

Each owner, through its membership in the condominium association, will be entitled to use the resort amenities as a result of a recorded shared facilities covenant. In exchange for the right to use the resort amenities, each unit owner will be required to pay a shared facilities assessment determined by the size of the owner’s unit, such amounts to be used by the hotel operator to repair, replace, maintain and operate the resort amenities.

What is the amount of the shared facilities assessment?

The shared facilities assessment will be in an amount consistent with other first class resorts in the Caribbean. We currently contemplate an assessment of approximately $0.88 per square foot, per month, although the final assessment amount will be determined in the near future as part of the condominium budget process and set forth in the condominium and shared facility documentation. Other real estate releases will pay fees through the master association.

What other expenses will be incurred in connection with ownership of the unit?

The unit owner will be responsible for Property Tax, if it is levied. This is based on the unfurnished rental value of the property. The following would be the estimated charges which are as follows US $500 per annum for a one-bedroom; US$ 900 per annum for a two bedroom, US$ 1350 per annum for a three-bedroom. These figures are approximate and we also believe that they may not be charged, since the hotel is already paying room taxes. We are also trying to get an answer on the waiver of this tax. In addition they will have to pay insurances which is estimated at US$4,000 for a one-bedroom; US$5,000 for a two bedroom and US$6,000 for a three bed apartment. There should not be any further charges unless other special services are requested from the hotel.

Will unit owners become members of the Le Paradis Golf Club?

Resort Golf Membership will be issued to the master association for the benefit of all purchasers of residential properties and for all other residential releases a golf membership plan is available for review and participation.

Who can obtain the benefit of each owner’s golf membership?

The member’s spouse or adult cohabitant of the member’s household and their unmarried children under the age of 25 living at home, attending school on a fulltime basis or serving in the military receive the benefit of the member’s membership.

Can guests of each owner use the golf membership?

Members are entitled to guest privileges in accordance with club rules, subject to payment of the applicable guest fees and the rights of the club board to limit guest privileges. Each resort member is entitled to an average of four to eight passes annually based on the applicable real estate purchase and for the member or accompanied guests to play the golf course without payment of any green fees or guest fees.

Are golf memberships transferable?

Golf memberships are transferable to subsequent purchasers of condominium units and other real estate releases and are contingent upon the sale and closing of the respective residence.

Is there an established annual dues payable?

Dues are payable upon the completion and issuance of a certificate of occupancy for the condominium unit and for home sites when the road, services and utilities are in. Of course, these amounts are estimates only and provided for your convenience.

Is there an established golf membership fee?

The membership fee is currently being waived by the developer.

What is the smoking policy for the condominium?

If the unit is participating in the hotel rental program, then it is Non-Smoking. If the unit is not participating in the hotel rental program, the owner may smoke at his/her discretion.

What are the advantages to using a St Lucia Company or an IBC formation in the acquisition of the unit?

Once the sale and purchase agreement is executed and the 30% deposit has been paid, buyers are encouraged to discuss with the local attorney of their choice the advantages of either purchasing through a local company, or forming an IBC to hold title to the unit. Theses structures contains numerous advantages, including the ability to transfer the unit in a manner that protects the underlying income and property tax benefits for the subsequent purchaser as well as reducing the transfer costs as no recording, stamp, vendor or deed taxes will be incurred. The closing costs associated with IBC formation or setting up a local company are described on the cost schedule attached to the panel of lawyers list. Of course, formation of an IBC is voluntary, and buyers should consult with their attorney and investment advisor.

What is the Queen’s Chain Lease?

Portions of the resort are situated on land that is leased by developer from the Queen of England. The Queen's Chain Lease has a term of ninety-nine (99) years, commenced on November 15, 2004, and terminates on November 15, 2103.

What are the implications of the termination of the Queen’s Chain Lease?

A new lease is executed closer to the termination of the Old Lease and is completed by the developer.