TURKS & CAICOS Law and Practice Contributed by: Christopher Smith, Dentons Turks and Caicos
• review any leases, if the property is subject to leases; • raise any relevant enquiries with the seller (ie, about the state and condition of the property, any disputes, compliance with laws, overriding inter - ests and services); • consider whether any additional enquiries should be raised with public or other bodies (depending on the nature of the transaction); and • consider recommending a physical inspection or survey of the property by the purchaser and a professional. During the COVID-19 pandemic, with international borders being closed, clients were purchasing prop - erty on the basis of remote viewings. Now that travel has opened up again, most clients are able to visit Turks and Caicos to view properties in person and instruct any inspections and surveys as necessary. 2.5 Typical Representations and Warranties Typically, a property sale and purchase agreement will contain a basic set of warranties as to good title and the absence of knowledge of any claims or disputes, but generally the position is that purchasers must sat - isfy themselves as to the state and condition of the property, and its suitability for the intended purpose, and that the necessary consents for development or existing structures are available and/or in hand. Common purchaser remedies for misrepresentation or breach of warranty include an action for damages, misrepresentation and/or rescission of the agreement, and a refund of any deposit paid. Time limits or liabil - ity caps in respect of representations and warranties given by a seller in a contract are not typically seen. Representation and warranty insurance is not avail - able in the domestic market. 2.6 Important Areas of Law for Investors Any investor should consider the primary sources of law, including the Registered Land Act, the Planning Act and the Stamp Duty Act. Other laws may apply, depending on the nature of the transaction and how it is structured. While actual title to land must be held by an individual or a Turks and Caicos limited liability company, there
are generally no restrictions on foreign ownership of real estate in the Islands. The shares in a Turks and Caicos limited liability company may be held by, for example, a US LLC or a trustee for the benefit of a foreign-established trust. 2.7 Soil Pollution or Environmental Contamination Given the nature of the Islands, soil pollution and environmental contamination are not currently com - monly encountered issues. Although uncommon, environmental liabilities can be dealt with contractu - ally between the parties by way of warranty and rep - resentation. The Planning Act gives powers to the Planning Depart - ment to serve stop/enforcement notices where it con - siders that the amenity of an area is adversely affected by reason of, inter alia, the condition of any structure or the condition of the land. Notice can be served on the owner or occupier of the land or building, or the person responsible for causing the condition of the land or building. There is currently no material environmental legisla - tion, and sale contracts are therefore typically silent in this regard. The National Parks Act establishes whether land forms part of a national park or is a site of historical interest. If so, the Act sets out certain limitations on the development of such land. On application for planning permission, the director of planning may require an environmental impact report/ survey to be carried out. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law There is a zoning plan for the Islands that is main - tained and can be referred to in order to ascertain the applicable zoning. Any development of land requires a grant of planning permission. Development includes not only the undertaking of physical development but also change in the use of any building or other land, or the subdivision of land.
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