Real Estate
The Real Estate Group of Lennox Paton advises on all aspects of residential and commercial real estate transactions. We have particular expertise in resort and commercial property acquisition and financing, time-share, fractional and condo-hotel structures, title insurance, subdivision planning and development, condominium development and foreign direct investment/incentive legislation. We offer advisory services in the negotiation of Heads of Agreement with the Government of The Bahamas and incentives under the Hotels Encouragement Act.
Purchase of Real Estate by Non-Bahamians
The purchase of real estate in The Bahamas by non-Bahamians is governed by the International Persons Landholding Act. Depending on the size and intended use of the property, non-Bahamians must either register their purchase with the Bahamas Investments Board ("the Board") upon completion of the transaction or obtain a permit from the Board prior to their purchase. Registration is required for the purchase of a condominium or residential property under Five (5) acres. Otherwise, a permit is required for the purchase of commercial property or property exceeding Five (5) acres. Additionally, it is the practice of the Board to require a permit for any second or subsequent purchase of property by a non-Bahamian, regardless of its size or use. An exception is made for Permanent Residents, who are only required to register their purchases.
We can assist with negotiating the terms of sale, settling the Agreement for Sale, filing any applications with the Board, reviewing the documentary title and closing the transaction.
Closings are generally less formal than in other jurisdictions - you are not likely to find all of the parties sitting across from one another with their attorneys and bankers on the closing date. It is more common for the Vendor's Attorney to forward the title deeds to the Purchaser's Attorney in escrow pending final payment. Once the Purchaser tenders final payment, the transaction is complete.
Typical Fees for a Real Estate Transaction in The Bahamas
Real estate transactions in The Bahamas generally require coordination with several government departments, particularly for non-Bahamians. The various fees associated with a real estate transaction are listed below:
| 1. Stamp Duty | |
| a. Property value < $20,000 | 2% |
| b. Property value > $20,000 to $50,000 | 4% |
| c. Property value > $50,000 to $100,000 | 6% |
| d. Property value > $100,000 to $250,000 | 8% |
| e. Property value > $250,000 | 10% |
| Note: Stamp duty is based on the value of the property including chattels (furniture, fixtures, etc.). The transfer of shares in a company that owns real estate attracts the same amount of stamp duty. | |
| 2. Real Estate Agent Fees | |
| a. Undeveloped land | 10% |
| b. Developed land | 6% |
| 3. Attorneys Fees | |
| Where the value of the property exceeds $100,000, generally, it is industry practice to charge a fixed fee based on a percentage of the purchase price to represent a Vendor or Purchaser. | |
| 4. Real Property Taxes | |
| a. Owner-occupied property. | |
| i. First $250,000.00 | exempt |
| ii. $250,001 - $500,000 | 0.75% |
| iii. Over $500,000.00 | 1% |
| b. Non-Bahamian owned undeveloped land. | |
| i. First $3,000.00 | $30.00 |
| ii. $3,001-$100,000.00 | 1% |
| iii. Over $100,000.00 | 1.5% |
| Note: Bahamians are exempt from real property taxes on undeveloped land. | |
| c. Commercial and other property. | |
| i. First $500,000.00 | 1% |
| ii. Over $500,000.00 | 2% |
| Note: Property used for rental purposes is not considered "owner-occupied". | |