Note; The owners take no responsability for the accuracy of this guide, it is purely a guide and you should take proper legal advice when buying a property in Honduras including Utila and Roatan.

1. After you find a property you like, your real estate agent will create a simple sales agreement and after review, sign and initial it.

2. You have seven working days to get the 10% earnest money deposit wired to your real estate agent’s escrow account once the contract is approved by both you and the seller.  NOTE: When you sign the contract and promise to wire the money, then the owner signs it, the property comes off the market.  After you wire the earnest money, please be aware that if all contingencies and terms of the contract are met by the owner and you back out, you lose your earnest money deposit.  So make sure you want the property.

3. If you are purchasing title insurance, when you wire the earnest money to the escrow account, you also wire the title insurance application fee to First American Title or Stewart Title at the same time.  That is a non-refundable deposit.  If you later build a home or buildings on the property, you can increase the coverage. Your real estate agent can help you fill out the form to begin that and then within a day or so First American or Stewart tells you how much the fee will be exactly.

4. Within the first 10 days after you sign the sales agreement, you or your legal representative will receive both a survey and title.  The attorney begins his work at that time in checking the documents.

5. If you need to or choose to put the property in a corporation, you will need to provide the attorney with the name of the corporation you want (or corporation set in this case), and who the administrator or administrators will be.  Even though there are two corps, you only need one name, since one will have the suffix "holding".  If there is more than one administrator, then you need to decide if both administrators need to act (sign) together to make major changes like new administrators or sell the property or if either can act independently of the other.  If only one person is going to be at the closing, make it so either can act independently.

If there is any chance it could close late for title insurance reasons or any other reason, which is not uncommon, then many buyers will appoint a limited power of attorney to someone such as the real estate agent to accept benefits for the corporation (like land) and put assets in the corporation but not occur any liabilities (like selling land or entering into any agreements).  You have to tell the attorney if you want to do that.  The attorneys will provide you with closing costs, which are all paid at closing.

6. During the time you are waiting for the closing, your real estate agent assists the attorneys in getting the certificacion catastral (satellite registered plot), the survey, the paid tax receipts, etc. to make the closing and title insurance work.

7. At least a week before closing, you need to wire the final funds, including the attorney fees.  Real estate agents and attorneys are both present for the closing. This is assuming the attorney got the title insurance search and documents done and that the land has 100% good title with no unanswered questions.  If there are any issues on the seller's side, they must be resolved to the attorney's and your satisfaction or there is no closing and all funds are returned or the closing is delayed.  Issues are rare.

8. You show up, sign the documents, the seller signs them and the real estate gets the OK from the attorney that you now own the property.  Then the seller gets his proceeds and the attorney is paid as well.  You also get copies of all documents before you leave.

9. Within four months or so you will receive the registered title from the municipal and the registered corporate documents and shares.  Within a few months after that, if you pester the attorney, you will receive the title insurance certificate from First American.  At that point you are all done.  Keep your copies of everything in a safe place and especially guard your corporation shares (originals) since he or she who holds those in their hands is the owner of the corps and all assets.

10. Don't forget to pay your taxes once a year or even pay them a few years in advance.  That will be done at the Oak Ridge or Coxen Hole municipal office.  Keep all tax payment receipts, since the municipal loses them before you are even out the door.   Ask the attorney once a year about any corporate updates you might have to do. Usually there are none.

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