Most houses in Grenada are bought the traditional way: one lot, one deed, one owner responsible for everything inside the boundary. Developments are different. A villa in a gated community on the south coast, an apartment in a block near Grand Anse or a unit in a resort can each come with a quite different legal structure, and the brochure rarely explains which one.
The structure determines what you actually own, who maintains the roads, pool and roof, what rules you live under and how easily you can sell, rent or mortgage the property. Before comparing views and finishes, find out which of three broad models a development uses, and read the documents that come with it.
The three structures you are likely to meet
Freehold lot in a subdivision. You buy a surveyed lot outright, with your own deed. The developer keeps or transfers the roads and common areas, and your deed contains covenants about building standards, use and contributions to shared costs. This is the closest to an ordinary house purchase.
Condominium unit. You own your unit, such as an apartment or attached villa, plus a share of the common property, and you become a member of the body that manages the building or estate. Grenada has legislation providing for condominiums, but whether a particular development has been formally registered under it is a fact to verify, not to assume.
Long lease. You buy a lease of a unit or villa for a long term, sometimes 99 years or more, from a freeholder who keeps the land. You pay ground rent and service charges, and the lease governs what you can do. Some resort developments use this model, sometimes combined with rental-pool arrangements.
Shares in a company. Occasionally a property is owned by a company and you buy shares that carry the right to occupy a unit. This can work, but it brings company law and governance questions on top of property law and needs especially careful advice.
What to read before signing
For a freehold lot, the key document after the title itself is the set of restrictive covenants, sometimes called the scheme or estate rules. Read them line by line: minimum house size, approved materials, roof colours, whether you must build within a set period, whether short-term letting is allowed, how road and security costs are shared and what happens if you fall behind on payments.
For a condominium, you need the declaration or equivalent founding document, the by-laws, the budget and recent accounts of the managing body, minutes of recent meetings and the plan showing which parts are your unit and which are common property. The minutes often reveal more than the brochure: arguments about roof leaks, a large repair levy under discussion or a dispute with the developer.
For a lease, read the full lease, not a summary. Note the length remaining, the ground rent and how it can increase, the service charge mechanism, any restrictions on assignment or subletting, and the freeholder's obligations. A lease that requires the freeholder's consent to every sale can make resale slow.
Questions to put to the developer or seller
Ask for written answers, and have your attorney-at-law check them against the documents:
- Has the overall development received approval from the Planning and Development Authority, and do the plans approved match what is being built?
- Is the land the development stands on held freehold by the developer, free of mortgages, or will a bank's charge need releasing for each unit sold?
- Have the individual lots or units been surveyed and approved, so that each buyer can receive a separate deed or registered lease?
- Who owns the roads, water storage, sewage treatment and other shared infrastructure now, and who will own them once the developer leaves?
- How are service charges calculated, what do they cover, and what is the record of increases over the past few years?
- What insurance does the managing body hold for the buildings and common areas, including windstorm cover, and what must owners insure themselves?
- Are there rules on holiday letting, pets, alterations or noise that would affect how you intend to use the property?
Off-plan purchases
Many development sales happen before the unit is built. Off-plan buying can secure a lower price, but it changes the risk. You are paying for something that does not yet exist, often in staged payments tied to construction milestones, and your protection depends heavily on the contract.
Good off-plan agreements specify the unit, the plans and specifications, a completion date with consequences for delay, how staged payments are held, and what happens if the developer cannot finish. Ideally, deposits sit with an independent attorney or in an escrow arrangement rather than going straight into construction. Ask whether the developer's bank has a charge over the site and whether it has agreed to release individual units on payment.
Hurricane season is a real factor in construction timetables. Storms, shipping delays for imported materials and labour shortages after a hurricane can push completion back by months. Contracts should deal with such delays sensibly rather than leaving the buyer with no remedy at all.
Visit the site during construction if you can, or ask an independent engineer or quantity surveyor to inspect on your behalf before releasing major stage payments. Photographs from the developer are not a substitute for an inspection by someone who works for you.
If you are a non-national, the Alien Landholding Licence position for an off-plan unit needs checking early: when the licence is applied for, by whom, and whether the developer has an arrangement in place for its buyers.
Common problems with development titles
No separate deed yet. Buyers sometimes pay in full and move in before their unit has been surveyed and conveyed. Years later the developer is gone, the parent title is still in its name and the buyer cannot sell or mortgage. Do not complete without a deed or lease ready for registration.
Unclear common areas. If the pool, beach access or road is not formally vested in the managing body or granted to owners by easement, a later owner of that land could restrict use.
Service charge shortfalls. Small developments with few owners can struggle to fund roof repairs or post-storm clean-up. Check the reserve fund and ask whether special levies have been charged recently.
Developer control. Some schemes let the developer control the management company long after most units are sold. Find out when control passes to owners.
Rental-pool commitments. Resort units tied to a rental programme may restrict your own use and lock you into fees. Read those terms as closely as the title itself.
Resale, mortgages and holding costs
The structure you buy into affects your exit as much as your purchase. Freehold lots in established subdivisions with clear covenants are generally the simplest to resell and to mortgage, because buyers and banks recognise the model. Condominium units in well-run buildings with healthy accounts also sell well. Leases with a long unexpired term and reasonable terms are acceptable to many buyers, but leases with consent requirements or escalating ground rents can narrow the market.
Banks in Grenada lend on all three structures in principle, but each will want to review the title documents and may have its own requirements, for example a minimum unexpired lease term. Ask your intended lender early rather than discovering a problem after signing.
Remember the running costs: service charges or estate fees, property tax assessed by the Inland Revenue Division, insurance and, in a lease, ground rent. Ask for actual figures for the past two or three years and treat any quoted amount as subject to confirmation.
Frequently asked questions
Does Grenada have condominium law?
Yes, Grenada has legislation that allows buildings and estates to be divided into units with shared common property. Not every development described as a condo uses it, though. Ask your attorney to confirm how the specific development is legally structured and registered.
Is a 99-year lease as good as freehold?
For many owners a long lease works perfectly well, especially for a holiday home. But you do not own the land, you pay ground rent and you live under the lease terms. Resale value can fall as the remaining term shortens, and some banks limit lending on shorter leases.
Who maintains roads in a private gated community?
Usually the owners, through a management company or owners' association funded by service charges, according to the covenants in each deed. Public roads outside the estate are a government responsibility. Check the documents to see exactly who is obliged to do what.
Can a foreigner buy a condominium unit without an Alien Landholding Licence?
A non-national generally needs a licence to acquire an interest in land in Grenada, and that can include units and leases in developments, though there are exemptions in some cases, including certain approved projects. Ask your attorney to confirm whether a licence or exemption applies to the specific property.
What happens if the developer goes bankrupt before completion?
Your position depends on the contract, whether your payments were protected in escrow and whether a bank holds a charge over the site. Buyers without protection may become unsecured creditors. This is why independent legal advice before paying off-plan instalments matters so much.
