ST KITTS & NEVIS Law and Practice Contributed by: Dahlia Joseph Rowe and Daisy Joseph Andall, Joseph Rowe, Attorneys-at-Law
rowing funds to acquire or develop real estate is a mortgage over the property. The mortgage can be legal or equitable. If an equitable mort - gage is created, a caveat is usually placed on the property to forbid any further dealings with the property. In addition, the company may pledge its shares to the lending institution and use a corporate or personal guarantor as additional security. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders Foreign lenders are required to apply for and obtain an alien land holding licence to hold secu - rity over real estate in St Kitts and Nevis. The application process is fairly simple and is largely procedural. Other than the requirement to obtain an alien land holding licence, there are no restric - tions on granting security over real estate to for - eign lenders. Similarly, there are no restrictions on repayments being made to a foreign lender under a security document or loan agreement. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security A stamp duty of 1% of the sum secured is gen - erally payable on the registration of a mortgage. However, the rate is 2% of the sum secured for mortgages taken over land in the South East Peninsula that is designated as a Special Devel - opment Area under the Stamps Act. The main cost of enforcement of the security would be legal fees as a court process is usu - ally involved. 3.5 Legal Requirements Before an Entity Can Give Valid Security There are generally no legal rules or requirements that must be complied with before an entity can give valid security, other than the provision of
the usual corporate authorities from the board of directors authorising the proposed transaction. 3.6 Formalities When a Borrower Is in Default The Title by Registration Act sets out a detailed procedure to be followed by a mortgagee when a borrower is in default. • Service of a formal notice to pay off, in the prescribed form, on the registered proprietor, requiring payment within 60 days of the date of service. • If the registered proprietor fails to pay, the lending institution may seize the land by the bailiff appearing on the premises with an order to seize and shall serve the registered proprietor with an act of seizure in the pre - scribed form. There is provision for substi - tuted service in circumstances where the whereabouts of the registered proprietor are unknown. • The lender presents a caveat of seizure in the prescribed form to the registrar, which the registrar shall note on the title. The caveat of seizure prohibits any dealings with the land seized until the caveat is removed or with - drawn. • If no payment or satisfactory arrangements for payment is/are made within 30 days from the date of seizure, the lender applies to the court to settle the articles of sale, estimate an upset price, fix the day of the sale and the mode of publication of the sale. The applica - tion is served on the registered proprietor, who may attend the hearing and make repre - sentations accordingly. The lender would usually obtain a valuation to support its application to estimate the upset price. Further, the sale must be satisfactorily advertised and proof of advertisement must be
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