What is a public auction, generally?
It is an event where members of the public can attend to bid for the purchase of property. The winner is the person who has bid the highest purchase price.
What is court controlled public auction in St Kitts and Nevis?
It is a public auction held at the High Court, either in Basseterre, St Kitts or in Charlestown, Nevis, whereby the Registrar of the High Court (or a clerk or Bailiff assigned) conducts the receiving of bids for the purchase of property (i.e. land and buildings). The bidding starts at the “upset price” of the property after the rules of the sale are read to all persons present. The Registrar or the assigned person will call out the last bid and ask if anyone else wishes to bid at least EC$500 more than the previous bid, until no further bids are received. Persons indicate they wish to bid by putting up their hands and announcing their bid.
What is an upset price?
It is the starting bid for a public auction. A property can only be purchased if there are at least two bids made by two separate persons attending the public auction.
What do I need to bring to a public auction in St Kitts and Nevis?
If you have the money in a bank account, your cheque book. If you don’t, then a draft or manager’s cheque from the bank who will be giving you the loan to purchase the property. The court also accepts cash, but be careful carrying around too much.
The successful bidder must pay at least one quarter (25%) of his or her winning bid before leaving the place of the auction in order to be considered the successful purchaser of the property. The remaining 75% must be paid within one month, or by written request to the Registrar, it can be extended to two months.
When can I enter the property after I win at the public auction?
After you pay at least one quarter (25%) of your winning bid, by law, you are entitled to immediate possession of the property for which you bid. However, if there are tenants in the property or the owner still lives in the property, you must inform them of your status as purchaser of the property and demand that they leave the property. If they refuse, you should contact a lawyer.
How soon can I get legal title to the property?
There is no set rule in this regard, however a fair estimate is within 3 to 6 months after you pay the remaining 75% of the purchase price of the property.
What taxes or fees do I have to pay after I win at the public auction?
You are responsible for paying all outstanding property tax due to the Government in relation to the property. In order to transfer legal title to the property to you, you will have to engage a lawyer to prepare the relevant documents and pay to the Government 6% of your winning bid as Stamp Duty (if the winning bid is more than the property’s value assigned by the Government for property tax purposes), 0.05% of your winning bid as the Title By Assurance Fund Fee and EC$7.20 as a Processing Fee.
E.g. if your winning bid was EC$200,000 then you would have to pay a total of EC$200,000 + EC$12,000 + EC$100 + EC$7.20 = EC$212,107.20 plus legal costs.
If your winning bid is less than the property’s value assigned by the Government for property tax purposes, then the Stamp Duty and Title By Assurance Fund Fee are calculated based on the Government’s valuation of the property.
What happens if I cannot find the money to pay the remaining 75%?
Your deposit will remain deposited with the Government and will be used to pay the costs of any further court controlled public auctions. The remaining balance after the property is sold at auction, if any, will be paid back to you.
Can I bid for someone else?
Yes, however you must disclose after you have won the auction the name(s) of the person(s) or company for whom you were bidding and who intend(s) to own the property.
Can I bid with someone else?
Yes, more than one person can own property in St Kitts and Nevis, therefore more than one person can bid at an auction. You must disclose after you have won the auction the name(s) of the other person(s) who intend to own the property.
Can I bid if I am not a citizen of St Kitts and Nevis?
Yes, however as a non-citizen you can only formally own land in St Kitts and Nevis if you have an Alien Landholding Licence to do so. You can apply to obtain an Alien Landholding Licence after the auction and payment of the minimum 25% deposit.
Where are the public auctions held in St Kitts and Nevis?
In St Kitts, public auctions are usually held upstairs in the High Court, Sir Lee L. Moore Judicial and Legal Services Complex, East Independence Square Street, Basseterre, St Kitts. You just have to report to the police officer downstairs at the entrance door that you are attending a public auction.
In Nevis, public auctions are usually held in the High Court, Corner of Prince William Street & Main Street, Charlestown, Nevis. Just walk in the main doors and inform any staff present that you are attending a public auction.