A lot in a new subdivision looks like the simplest kind of land purchase: a numbered parcel on a plan, a road, perhaps water and power promised, and a developer eager to sell. In reality, buying in a new subdivision combines the usual risks of land purchase with a set of extra ones that depend entirely on whether the developer has done, and will do, what the approval requires.
Problems that buyers in Grenada have faced include lots sold before approval, roads never finished, utilities that never reached the lot, boundaries that moved when the final survey was done and covenants that nobody enforced. Most of these could have been avoided by asking the right questions before paying a deposit.
This checklist sets out what to confirm, in roughly the order it matters. Use it with your own attorney and surveyor; the developer's professionals act for the developer, not for you.
Approvals and plans
Start with the legal foundation of the lot. Without these, nothing else matters:
- Planning approval. Ask for a copy of the subdivision approval from the Planning and Development Authority, including all conditions, and check that it covers the phase in which your lot sits.
- Approved final plan. Confirm that the final subdivision plan has been approved by the Lands and Surveys Division and that your lot appears on it with the same number, dimensions and area as in the sale agreement.
- Title to the whole parcel. Have your attorney check that the developer owns the land being subdivided, and whether any mortgage over it will be released for your lot on completion.
- Survey marks on the ground. Ask a licensed surveyor of your choosing to confirm that the corner marks of your lot are in place and match the approved plan.
Roads, drainage and utilities
Road completion. Is the road to your lot built to the approved standard, or only roughly cut? If not finished, what are the timelines, and is there a bond, guarantee or other security that ensures completion?
Road ownership and maintenance. Will the road be taken over by government, or will it remain private? If private, who owns it, who maintains it and how is that funded?
Drainage. Are side drains and culverts in place, and where does water from the road and lots above your lot go? Walk the site after heavy rain if you can.
Water at the lot. Is there a NAWASA main along the road in front of your lot, with adequate pressure? Ask NAWASA directly if in doubt.
Power at the lot. Are GRENLEC lines and poles in place near your lot, or only at the entrance? Who pays for any extension to your boundary?
Telecoms. Is fibre or fixed-line service available, or planned? Internet quality matters for most buyers now.
Covenants and the owners' association
Most planned subdivisions in Grenada come with restrictive covenants: rules about what can be built, how high, how far from boundaries, what materials, whether commercial activity or further subdivision is allowed, and sometimes landscaping, fencing and animals. Read them in full before committing. Some buyers welcome strict covenants because they protect views and character; others find them too restrictive for their plans.
Ask who enforces the covenants. In some developments, an owners' association or management company does so and collects fees for road maintenance, security, lighting and common areas. In others, enforcement depends on individual owners taking action, which rarely happens in practice.
If there is an association, ask for its constitution, current fee levels, recent accounts and any planned special charges. Check whether the developer still controls it and when control passes to owners. Unpaid fees can become a charge on a lot, so make sure the seller is up to date.
The sale agreement and your money
The agreement for sale is where your protection lives. Have your own attorney review it and look for:
- A clear description of the lot by number, area and reference to the approved plan.
- Conditions making the sale subject to approval, final plan acceptance and, for foreign buyers, the Alien Landholding Licence, with deposits refundable if conditions are not met.
- Deposits held by an attorney or in escrow rather than paid directly to the developer for general use.
- Specific, dated obligations for the developer to complete roads, drainage and utilities, with remedies if they are not met.
- Rights of way over subdivision roads and drains granted in the deed.
- Who pays which taxes, fees and registration costs on transfer.
- What happens if the developer sells the remaining lots to another company or becomes insolvent.
Red flags to take seriously
Be cautious if the developer cannot or will not provide the planning approval and approved final plan, asks for large deposits paid directly to a company account, describes lots as "approved" but has only a draft layout, or presses for a quick decision with talk of other buyers waiting.
Other warnings include roads that stop short of most lots, utility poles only at the entrance, unfinished phases left untouched for years and owners who complain of unfulfilled promises. Talk to people who already own lots and have built; they will tell you how the developer behaves after the sale.
Check the developer's track record. How many subdivisions have they completed? Are earlier phases fully serviced and roads taken over? A good track record is the best predictor of whether promises will be kept.
Finally, compare the lot price with village lots nearby that have similar access and services. A planned subdivision can justify a premium for finished roads, covenants and certainty, but if the infrastructure is unfinished and the covenants unenforced, the premium buys very little. Ask your own valuer for an opinion rather than relying on the developer's comparisons.
When buying off-plan land makes sense
Buying a lot before infrastructure is finished can secure a better price, and some well-run developments sell lots in phases on that basis. The risk is acceptable when the subdivision is approved, the final plan is accepted, deposits are protected, the developer has a strong track record and there are binding commitments, preferably backed by security, to finish the work.
The risk is not acceptable when approval is pending, plans are draft, deposits are unprotected and obligations are vague. In that situation, the discount for buying early is rarely enough to compensate for the chance of a lot that cannot be built on for years, or at all.
If in doubt, wait. Lots in a good subdivision will still be available once the road and services are complete, perhaps at a higher price, but with far more certainty.
After completion
Once the deed is registered, keep copies of the approval, approved plan, deed, covenants and association documents together. You will need them for building approval, for a mortgage and for any later sale.
Before building, check the covenants again against your house design and confirm setbacks and building lines with the Physical Planning Unit. Keep up with association fees and attend meetings; decisions about roads, security and covenant enforcement directly affect your lot's value.
If you are not building straight away, arrange for the lot to be kept cleared and the corner marks protected. Bush grows quickly, marks get knocked out by machinery working on neighbouring lots, and covenants or association rules often require vacant lots to be maintained.
Finally, keep an eye on the developer's remaining obligations. If roads, drains or utilities promised for your phase are not completed on time, raise it promptly, in writing, and involve your attorney if needed. Delays become harder to fix the longer they are tolerated.
Frequently asked questions
How can a buyer check that a Grenada subdivision is approved?
Ask the developer for the planning approval from the Planning and Development Authority and the approved final plan from the Lands and Surveys Division, and have your attorney verify them. The Physical Planning Unit can confirm the status of an application if needed.
Is it safe to buy a lot before the road is built?
It can be if the subdivision is approved, deposits are protected, the developer has a good track record and there are binding, preferably secured, commitments to complete the road. Without those safeguards, buying before infrastructure is finished carries significant risk.
Who should hold the deposit on a subdivision lot?
Ideally an attorney or escrow arrangement, not the developer directly. The agreement should say when the deposit is released and when it is refundable, for example if approval or the Alien Landholding Licence is not obtained.
What are restrictive covenants in a subdivision?
They are rules attached to each lot governing what can be built and how land can be used, such as height limits, setbacks, materials and bans on commercial activity or further subdivision. They are binding on owners, so read them carefully before buying.
What happens if the developer never finishes the services?
Buyers may have remedies under the sale agreement, any bond or guarantee and planning conditions. In practice, enforcement can be slow and costly, which is why securing clear obligations and protected deposits before paying is so important. Speak to your attorney early.
Do owners in a subdivision pay fees?
Many planned developments have owners' associations that charge fees for road maintenance, security, lighting or common areas. Ask for fee levels, recent accounts and the association constitution before buying, and confirm that the seller has no arrears.
