ST KITTS & NEVIS Law and Practice Contributed by: Dahlia Joseph Rowe and Daisy Joseph Andall, Joseph Rowe, Attorneys-at-Law
4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The legislative and governmental controls that typically apply to strategic planning and zoning in St Kitts and Nevis are set out in the following legislation: • the Planning Act; • the Nevis Physical Planning and Development Control Ordinance (the “Planning Ordinance”); • the Nevis Zoning Plan Ordinance; and • the Condominium Act, which governs the development of condominiums. 4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction The Planning Act and Planning Ordinance broad - ly govern the design, appearance and method of construction of new buildings or refurbishment of an existing building. In addition to requiring that plans be registered with, and approved by, the Department of Physical Planning (DPP), the DPP also makes regular physical inspection of the construction site to ensure that construction is proceeding according to the approved plans. Residential and commercial buildings are sub - ject to height restrictions based on the zone in which they are located. Hotels and other build - ings on the coast are required to be erected at a minimum specified distance from the high-water mark. 4.3 Regulatory Authorities The authority that is responsible for regulating the development and designated use of indi - vidual parcels of real estate is principally the Department of Physical Planning. If the regula -
submitted to the court. If there are no bidders, the auction is postponed. If the auction is not successful, the borrowing entity can apply to the court to reduce the upset price of the property, based on the further appraisal of a valuer. 3.7 Subordinating Existing Debt to Newly Created Debt It is possible for existing secured debt to become subordinated to newly created debt; however, this will depend on the lending institution. It is generally done by an agreement, subject to the lending institution’s conditions, which typically include that the collateral on the existing debt is valued high enough to secure the newly cre - ated debt. Life insurance policies, large enough to accommodate both debts, are also a usual requirement for individuals. 3.8 Lenders’ Liability Under Environmental Laws Generally, a lending institution that merely holds a security over real estate would not be liable for breaches of environmental laws. 3.9 Effects of a Borrower Becoming Insolvent No registered security interests created by the borrower in favour of a lender are made void if the borrower becomes insolvent. 3.10 Taxes on Loans There is a 1% stamp duty on the sum secured payable on the registration of a mortgage over real estate in St Kitts and Nevis. The stamp duty is usually for the account of the borrower and the lender would ordinarily include the stamp duty with the payments to be made by the borrower (eg, lender’s commission and/or administrative fee, legal fees) as a prerequisite to disbursing the loan.
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