Understanding Provisional Titles: The Belizean Perspective

In Belize, a provisional title is a type of land ownership where individuals can obtain a title to a property even if they cannot produce the necessary documents to prove ownership. This type of title is granted to those who can demonstrate long undisturbed possession of the land for 12 years or more. It is important to note that in the case of a provisional title, a note must be made on the register stating the period of provisional occupation and the conditions to which the title is subject. This type of land ownership is different from other forms such as fee-simple title, leasehold title, and strata title, which all have varying levels of ownership rights and restrictions.

When are provisional titles granted?

In Belize, there are two types of registrable titles: absolute titles and provisional titles. Provisional titles are granted when documents are not produced and long undisturbed possession cannot be proved. In this case, a note must be made on the register stating the period in which provisional occupation commenced and the conditions to which the title is subject.

Absolute titles are granted when copies of documents showing proof of ownership are submitted, or when persons are able to prove long undisturbed possession of their lands and do not possess deeds. Possession must go back 12 years or more.

In Belize, when you buy land that has a title, the original or certified copies of land documents registered with the Lands Department are issued as proof of ownership. The land title will have either the owner's name or a corporate entity. In Belize, for a land transaction to take place, proof of ownership is required.

There are two types of land in Belize: Undeclared Land and Declared Land. Transactions done for Undeclared Land in Belize must be recorded at the Titles Registry, while transactions done for Declared Lands must be registered at the Land Registry. Both registry offices are located in Belmopan, in the Cayo District.

What are the types of registrable titles?

There are two types of registrable titles in Belize: absolute titles and provisional titles.

For absolute titles, copies of documents showing proof of ownership are submitted, or individuals can prove long undisturbed possession of their lands (12 years or more) even if they do not possess deeds.

Provisional titles are granted if documents are not produced and if long undisturbed possession cannot be proved. In this case, a note must be made on the register stating the period in which provisional occupation commenced and the condition to which the title is subject.

In addition to the two types of registrable titles, there are several other types of land titles in Belize. A fee-simple title is the strongest form of property ownership in Belize, where one owns the land outright with no restrictions on its use. This is the most common type of title for land in Belize and the type of title that foreign buyers are most likely to receive.

A leasehold title gives the holder the right to use and occupy the land for a specific period, typically 25 to 99 years. After the lease expires, the land reverts to the owner. Leasehold titles are less common but can be a good option for buyers on a budget or who only need the land for a short period.

A Minister's Fiat Grant is a type of leasehold title granted by the government of Belize, typically for agricultural or industrial purposes and with favourable terms such as low rent and long lease periods.

A strata title is used for condominium units and other multi-unit properties. It gives ownership of an individual unit and a share of the common areas of the property.

Undeclared land is land that has not been surveyed or registered with the government. It is often cheaper to purchase but riskier as there is no guarantee that the seller actually owns the land.

Declared land, on the other hand, is land that has been surveyed and registered with the government. It is the most common type of land for sale in Belize and the type that buyers are most likely to purchase.

What is the process of checking a land title?

Checking a land title in Belize is a crucial step in the process of purchasing land or property to ensure that the transaction is secure and legal. Here is a step-by-step guide on how to verify land ownership and conduct a land title search:

• Hire a Real Estate Agent: Engage the services of a licensed Belizean real estate agent who specialises in checking land titles. They will be familiar with the land title system in Belize and can guide you through the process.
• Make a Formal Offer: The real estate agent will make a formal offer of purchase to the landowner on your behalf. This offer will include the legal name of the property, as given by the Department of Lands and Survey Office. It is standard practice to request permission to access the records of the land in question as part of the due diligence process.
• Request Land Records: Visit the Department of Land and Survey (also known as the Lands Department) and request records for the specific parcel of land. This department operates under the Ministry of Natural Resources and maintains land registration information. They can provide details on the registered owner(s), any restrictions on land use, and the existence of any liens or encumbrances on the property.
• Verify Information: It is highly recommended to hire a Belizean attorney or legal professional to verify the accuracy and completeness of the land title information obtained from the Department of Land and Survey. They can also confirm whether the land falls under the Registered Land Act System, one of the three land registration systems in Belize that all land titles are being transitioned to.
• Proceed with Caution: If there are discrepancies in the land title information or if the land title doesn't match up, exercise caution. In the past, Belize had three different systems of registering land, which may create loopholes or technicalities that could potentially lead to scams or fraudulent transactions.
• Obtain a Land Title: To ensure a secure transaction, it is worth taking the time to obtain a Land Title through the Registered Lands Act System. This land title will supersede any other land titles that may exist or appear in the future.
• Finalise the Transaction: Once all the necessary checks have been completed and verified by your real estate agent and attorney, you can proceed with the proposed sale after paying any associated fees.

It is important to note that land in Belize can be classified into two main categories: Declared Land and Undeclared Land. Declared Land refers to properties that already have a title issued, making transactions easier. Undeclared Land, on the other hand, requires a lengthier process involving registration at the Titles Registry. Most real estate transactions in Belize involve Declared Land with a real and absolute title.

What is the difference between declared and undeclared land?

In Belize, there are two types of land: declared and undeclared.

Declared Land

Declared land is land that has been surveyed and registered with the government. This is the most common type of land for sale in Belize and is the type of land that buyers are most likely to purchase. The Land Registry Department records the details of all land transactions within Belize, indicating and defining the boundaries of each individually owned parcel of land. The Land Registry guarantees title to registered estates and interests in land, recording the ownership rights of freehold properties and leasehold properties where the lease has been granted for a term exceeding seven years.

Undeclared Land

Undeclared land is land that has not yet been surveyed or registered with the government. This type of land is often less expensive to purchase but is also riskier, as there is no guarantee that the seller actually owns the land. Undeclared land does not have a land title issued and is not registered with the local council and official authorities. Construction on these blocks cannot start until the land is registered and all necessary building approvals are obtained.

Benefits and Considerations for Each Type of Land

Registered land is ready to be built upon, whereas unregistered blocks are not. Buyers of registered land can benefit from quicker purchase and construction timelines, as the land has already gone through the registration process. However, there are fewer registered blocks on the market, so buyer competition is higher, and there may be restrictions on building and renovation plans due to council specifications.

On the other hand, unregistered land offers the advantage of potentially significant land value increases due to further suburban developments and area expansions. It is also more readily available, meaning less buyer competition. However, expected land registration dates and timeframes could impact construction schedules, and council zoning restrictions may limit certain construction works.

Both types of land offer benefits and considerations for buyers. Registered land suits those wanting to move in sooner, while unregistered land provides more flexibility in terms of time and money.

What is the role of a real estate agent in the land title process?

Real estate agents are licensed professionals who work with clients to help them buy, sell, or rent properties. They act as a go-between for buyers and sellers, performing administrative, research, and marketing tasks.

In the land title process, a real estate agent's role varies depending on whether they represent the buyer or the seller.

Agents representing the seller (also known as listing agents):

• Advise clients on how to price the property and prepare it for sale.
• Provide tips on last-minute improvements to boost the selling price or encourage faster offers.
• Market the property through listing services, their professional network, and advertisements.
• Photograph the property and list its top-selling points.
• Stage the property to make it appealing to potential buyers.
• Schedule and supervise property viewings and open house events.
• Draft and prepare documents such as offers, contracts, and closing statements.
• Communicate and coordinate with appraisers, escrow companies, lenders, and home inspectors.

Agents representing the buyer (also known as selling agents):

• Search for available properties that match the buyer's price range and wish list.
• Look at past sales data for comparable properties to help buyers create realistic bids.
• Coordinate and oversee open houses and property viewings.
• Arrange meetings with prospective buyers to understand their requirements.
• Negotiate property repair requests and offers on behalf of the buyer.
• Draft and review documents and contracts.
• Guide the buyer through the closing process, including paperwork and inspections.

Real estate agents play a crucial role in facilitating the land title process by connecting buyers and sellers, providing market insights, handling administrative tasks, and representing their client's interests throughout the transaction.

Provisional Titles in Belize:

In Belize, there are two types of land categories: Undeclared Land and Declared Land. Provisional titles are granted for Undeclared Land when documents proving ownership are not available, and long undisturbed possession (over 12 years) cannot be proved. In such cases, a note is made on the register stating the period of provisional occupation and the conditions to which the title is subject. Obtaining a clear title is crucial, and a Belize real estate lawyer can ensure this by researching the title and issuing a title opinion.

Frequently asked questions