In October 2007, the Government of Belize enacted a new Timeshare Act. This imposes strict considerations and reporting requirements for developers.
Applicable to:
- Timeshares
- Unit properties for selling
- Leasing or exchange
- Participatory arrangements
- Accommodation “pools”
- Intermittent occupancy schemes
- Membership vacation clubs
- Fractional interests
All Timeshare projects must now be registered within 30 days of commencement before any unit can be sold. Licenses will then be issued. Buyers are encouraged to request this proof otherwise risk the root of their title being invalid. This is itself an application process and we have the requisite expertise to successfully present and obtain said registration. Department of the Environment approval is among permits, required. Licenses are renewable annually and subject to specific terms and conditions.
There are now mandatory requirements, rights and obligations (on part of both Vendor and Purchaser) that must be contained in any Timeshare Sale Agreement. Buyers are encouraged to seek legal advice or become aware of the consequences of omissions thereto.
ESCROW AGENTS
A Developer must work in conjunction with a firm of Belize attorneys (or accountants) who are the only authorized persons to engage in such activity. This is subject to an Escrow Agreement setting out very specific requirements and relationships. This person’s name, address and escrow details must be made known by the developer to the Government in the application process.
Monthly Financial Statements must be prepared showing inter alia, Occupancy Tax receipts.
“HOMESTEAD” CONSIDERATIONS
These are available under the new legislation. Kindly contact us for further legal explanation/details.
INSURANCE
A Developer must provide public liability insurance, and coverage for usual perils specifically Hurricanes and Floods in a minimum coverage of $500,000 BZD. This is additionally to replacement coverage amounts depending upon the project size.
PROSPECTUS
Kindly contact us as to what must be included in this mandatory document.
OCCUPANCY TAX (and Tax Exemptions)
Every owner shall pay the Government tax at the rate of 6% of the value. This is paid to the Escrow Agent who in turn pays over to Government. GST, Stamp Duty or any other Tax or levy is exempted for payment by the Purchaser.
SALES AGREEMENTS
These are now mandated by Law to contain over and above the normal clauses found in standard sale agreements. Kindly contact us for samples.
CANCELLATION RIGHTS
This is a unique aspect of the Act. A Purchaser shall have the right to a full refund and cancellation of the Sale Agreement within 3 days of execution. Please contact us for procedures, details and when applicable.
Belize Timeshare and Escrow Ltd. can help you meet these requirements.
Contact us for assistance...
35 New Road | Belize City, Belize | Central America
Tel: 501-223-0088 |
501-223-0858 | Fax: 501-223-6403
info@timeshareandescrow.com