TURKS & CAICOS Law and Practice Contributed by: Oliver Chapman and Chris Smith, Griffiths & Partners Attorneys
tion and warranty insurance is not available in the domestic market. 2.6 Important Areas of Law for Investors Any investor should consider the primary sourc - es of law, including the Registered Land Ordi - nance, the Planning Ordinance and the Stamp Duty Ordinance. Other laws may apply, depend - ing 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. 2.7 Soil Pollution or Environmental Contamination Given the nature of the Islands, soil pollution and environmental contamination are not cur - rently commonly encountered issues. Although uncommon, environmental liabilities can be dealt with contractually between the parties by way of warranty and representation. The Planning Ordinance gives powers to the Planning Department to serve stop/enforcement notices where it considers 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 leg - islation, and sale contracts are therefore typically silent in this regard. The National Parks Ordinance establishes whether land forms part of a national park or is a site of historical interest. If so, the ordinance
sets out certain limitations on the development of such land. On application for planning permission, the director of planning may require an environmen - tal 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 maintained and can be referred to in order to ascertain the applicable zoning. Any develop - ment of land requires a grant of planning permis - sion. Development includes not only the under - taking of physical development but also change in the use of any building or other land, or the subdivision of land. Development Agreements It is common for larger developments to seek and enter into development agreements with the Crown and government to assist with a devel - opment project. The level of concessions and assistance afforded in such agreements will be determined by reference to general development guidelines, and an assessment of the benefits of a development to the Islands. The first port of call for parties wishing to secure development concessions or assistance would be the Islands’ investment agency, Invest TCI. 2.9 Condemnation, Expropriation or Compulsory Purchase The government may compulsorily acquire any land, but this is not common. Compensation is typically payable at the property’s market value. 2.10 Taxes Applicable to a Transaction Stamp duty is payable on:
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