Sunday, July 21, 2024

Island Alert

In this space we issue warnings to island purchasers on different subjects.

Island ownership

The island ownership can be freehold or leasehold. Purchasers should know that leasehold islands are equivalent to the right of use, the purchaser will not own the island, but only have the right to use the island for a certain period of time and under certain conditions. Expropriation insurance is impossible. We advise the purchaser to look at the purchase price of that leasehold, so that the purchaser does not end up paying the price of a freehold island for a leasehold island. This is very often the case and some market players try to take advantage of the purchaser’s lack of knowledge.

Furthermore, the purchaser should be warned whether as a foreigner in a country he is allowed to purchase land at all. In many cases like, Indonesia, the Philippines, Thailand, Burma, just to name a few, foreigners are not allowed to purchase any land, especially islands. Some people in the market place try to convince innocent purchasers to form trust companies, partnerships, and other nominee scenarios. We only can warn against considering such structures. The foreign purchaser will always be at the mercy of those trusteeships and of course laws have been violated with all legal consequences.
We would like to draw your attention to our Checklist for Island Buyers