Vetting a Grenada CBI Developer: A Document-by-Document Check

The government vets developers before approving their projects, but its checks answer a different question from yours. The agency asks whether a project is suitable for the programme. An investor needs to know whether this particular developer will finish the building, run it competently, honour its contracts and still exist when the five-year holding period ends. Those are commercial questions that only your own investigation can answer.

The checklist below works through the papers a careful buyer should see, in roughly the order they matter. It is written for applicants on Grenada's real estate route and assumes you will have an independent Grenadian attorney, not one acting for the developer or the sales agent. Requirements for project approval change, so confirm the current position with the Investment Migration Agency.

1. Who owns the developer, and who stands behind it

Corporate records. Ask for the certificate of incorporation of the project company, its register of directors and shareholders, and the ownership chain up to the people who control it. Many projects use a single-purpose Grenadian company owned by an overseas parent.

Track record. Ask which projects the same people have completed before, in Grenada or elsewhere, and whether earlier programme investors were paid what they were promised.

Financial strength. Request recent financial statements for the project company and, where relevant, the parent. A project company with no assets beyond the land and buyer deposits is far riskier than one backed by a solvent group.

Disputes. Your attorney can search for litigation involving the company in Grenada. Ask the developer directly about disputes with contractors, lenders or past buyers.

2. Land, title and approvals

Title to the land. Your attorney should search the title at the Deeds and Land Registry to confirm who owns the land, whether it is mortgaged and whether there are easements or claims.

Planning permission. Ask for the planning approvals from the Physical Planning Unit and any environmental conditions. A project without full permissions can be halted.

Programme approval. Ask for written confirmation, through your licensed agent, that the project is currently approved for the programme and that the unit type you are buying is covered.

Lender charges. If a bank has a charge over the project, find out how buyers' interests rank against the lender if the developer defaults.

Unit identification. For a specific unit, the agreement and any strata or condominium plan should identify it precisely, with floor area and boundaries. For shares, ask how the register of members is kept and by whom.

3. The purchase agreement and escrow

The purchase agreement is the document that protects you, so read it line by line with your attorney. It should describe exactly what you are buying: a specific unit, a fraction or a number of shares, with the price, the payment schedule, the completion date and the remedies if the developer is late.

The most important clause concerns money held before approval. Purchase funds should go into escrow with an independent escrow agent, such as a law firm or bank, and be released only when your application receives approval in principle. If the application is refused, the agreement should return your money, minus any clearly stated deductions. Check who the escrow agent is and confirm the account details independently.

Also look for a long-stop date: a point after which you can withdraw if the unit has not been completed or transferred. Without it, an off-plan purchase can leave you locked in indefinitely while construction stalls.

4. Construction and completion

For off-plan or partly built projects, construction risk is the largest risk you take. Ask for, and check:

• The construction contract and the name of the main contractor, with its record on comparable projects.
• A schedule showing completed and remaining stages, and evidence of progress, such as recent independent quantity surveyor or engineer reports.
• How construction is being financed: buyer funds, bank lending, the developer's own capital or a mixture.
• Whether buyer funds released from escrow are tied to construction milestones verified by an independent professional.
• The building standards used, particularly for wind loads and storm surge, given Grenada's position on the southern edge of the hurricane belt.
• What happened on the developer's earlier projects when schedules slipped.
• Whether you can visit the site, or send someone to inspect it, before committing.

5. The hotel operator and management agreement

Who runs the hotel. A recognised operator or brand with a signed management agreement is a strong sign. A brand that is merely "in discussion" is not.

The rental pool agreement. This sets how income is calculated, which costs are deducted before distribution, when payments are made and how accounts are reported to owners.

Owner charges. Ask for a breakdown of maintenance, insurance, management and reserve fund contributions, and how they have changed over time in comparable projects.

Personal use rights. Check how free nights are booked, whether they apply in peak season and whether they lapse if unused.

Term and termination. Find out how long the operator is committed, and what happens to owners if the operator leaves or the brand is dropped.

6. Insurance, hurricanes and reserves

Grenada lies in the hurricane belt, and recent history is a reminder of what that means. Hurricane Ivan in 2004 damaged most buildings on the main island, and Hurricane Beryl in July 2024 caused severe damage on Carriacou and Petite Martinique. Any long-term property investment needs to be judged with that risk in view.

Ask what insurance the project carries for property damage and business interruption, the level of cover, the deductible and the insurer's rating. Ask whether a reserve fund is maintained for major repairs, and how owners would be asked to contribute if damage exceeded insurance. A unit that earns nothing for a year while a hotel is rebuilt still incurs some costs.

Insurance in the region has become more expensive since recent storm seasons. Projected owner charges based on older premiums may understate future costs.

7. Before you sign: a final run-through

Once the papers have been reviewed, close out the remaining points in writing:

1. Have your independent attorney give a written summary of the risks found and how the agreement deals with them.
2. Confirm that no side agreement, rebate or discount reduces the real investment below the programme minimum; such arrangements endanger citizenship.
3. Get any buy-back or resale promise as a formal clause, naming the obligated entity and the price.
4. Check that the payment instructions come from the escrow agent and verify them by an independent route.
5. Keep copies of every document reviewed, with dates, as part of your permanent citizenship file.
6. Ask your agent to confirm in writing that the purchase, as structured, satisfies the programme's current conditions for your chosen form of ownership.
7. Agree with your attorney how you will monitor construction, owner accounts and the holding period after signing, since vetting does not stop when the money moves.

Red flags that should end the conversation

Some findings are serious enough that the sensible course is to walk away rather than negotiate. Treat any of the following as a reason to stop:

• An offer to refund part of the price, pay a cash incentive or credit a discount that brings your real investment below the programme minimum.
• Pressure to pay deposits directly to the developer or a sales company rather than to an independent escrow agent.
• Reluctance to disclose who owns the developer or to provide financial statements.
• A project marketed as approved where your licensed agent cannot confirm current approval in writing.
• A guaranteed rental return or buy-back with no identified entity able to pay it.
• Refusal to allow your own attorney to review the agreement, or insistence on using the developer's lawyer.

Frequently asked questions