In real estate transactions in Harbour Island, both buyers and sellers should be aware of the Harbour Island closing costs associated with a standard property sale. These expenses can vary depending on the sale structure whether it's a “gross sale” or a “net sale” and whether the property is developed or undeveloped.

For the Seller:

• Real estate agent’s commission:
  • 6% of the gross sale price for developed property
  • 10% for undeveloped land
• Half (½) of the Value Added Tax (VAT) on the sale price, calculated on a sliding scale from 2.5% to 10% depending on property value

• Legal fees, typically 2.5% of the property value

For the Buyer:

• The other half of the VAT
• Buyer’s legal fees, usually 2.5%
• Recording fees for the conveyance and other legal documents
• Permit fees under the International Persons Landholding Act, if applicable

In the case of a "net sale," the buyer may be responsible for covering all Harbour Island closing costs, including those typically paid by the seller.

These expenses form a significant part of real estate transactions in Harbour Island, and both parties should factor them in when negotiating price and contract terms. Working with a knowledgeable local attorney and real estate agent is strongly recommended to navigate the complexities of these transactions.