Banks cleared to finance condominiums as Gov’t resolves implementation issues

The Government has moved to address uncertainty surrounding condominium developments, with Attorney General Anil Nandlall assuring developers, banks, and prospective homeowners that no legal obstacles are preventing the financing, registration, or purchase of condominium units under Guyana’s modern condominium legislation.

Speaking on his weekly Issues in the News programme, Nandlall disclosed that he recently convened a high-level meeting involving the Guyana Association of Bankers, commercial bank executives, officials from the Deeds and Commercial Registry Authority, the Registrar of Commerce and representatives from the Ministry of Housing to address concerns that have emerged since the passage of the Condominium Act in 2022.

According to the Attorney General, the legislation replaced an outdated colonial-era framework and introduced a modern legal regime designed to facilitate condominium ownership similar to systems operating in North America and other Caribbean jurisdictions.

“The law permits everything that persons would like to see happen,” Nandlall said, dismissing suggestions that the legislation itself was preventing condominium transactions from moving forward.

He explained that the Act allows developers to establish condominium schemes, obtain financing for construction projects, and sell individual units from a master title. It also enables purchasers to secure mortgages using condominium units as collateral.

The Attorney General acknowledged that because condominium ownership is relatively new to Guyana, stakeholders have encountered challenges in interpreting and implementing certain aspects of the law.

Developers and prospective buyers had reportedly raised concerns with the government after experiencing difficulties during the registration and financing process. Similar concerns had also been raised by commercial banks.

Nandlall said the meeting helped resolve those issues and confirmed that financial institutions remain willing to support both condominium developers and buyers.

“The banks have no problem in financing the developer and the banks have no problem in financing the potential purchaser of a unit,” he stated.

He further clarified that the Deeds Registry is fully capable of processing condominium registrations, titles, and mortgage transactions associated with condominium developments.

To further support implementation, the government has commissioned the consultant who drafted the legislation to continue working with stakeholders, while a detailed manual is being prepared to guide lawyers, developers, bankers and registry staff through the legal processes involved.
Additional training is also planned for registry personnel.