Property Transactions
The Bahamas Investor
July 2007
Reprinted from the 2006 edition of the Bahamas Handbook
In New Providence, real estate agents charge a 10% commission on the sale of undeveloped property. The commission for developed, whether residential or commercial, is 6%. Agents charge a 10% commission for Out Island property, whether land, home or commercial properties. The government stamp duty on property conveyances or realty transfers is graded as follows:
Up to & including/Stamp duty
$0-$20,000 2%
$20,000.01 - $50,000 4%
$50,000.01 - $100,000 6%
$100,000.01 - $250,000 8%
Over $250,000 10%
In property sales, the vendor and purchaser each pay half the stamp duty unless otherwise agreed. The lawyer who prepares the conveyance typically charges a fee of 2-1/2% of the sale price.
Generally, payment of commission, stamp duty and legal fees falls upon the seller. Sometimes property owners list a net sales figure, in which case the agent adds those charges to the price quoted to prospective buyers. Stamp duty on mortgages is payable at a rate of 1% on the amount borrowed.
International Persons Landholding Act, 1993
The International Persons Landholding Act made it easier for non-Bahamians and companies under their control to own property.
1.
A non-Bahamian or permanent resident who purchases or acquires an interest in condominium or property to be used by him as a single family dwelling, or for construction of such a dwelling, must apply to the secretary to the Investments Board to register the purchase. Application for Registration Form I must be filed with the Ministry of Financial Services & Investments, along with proof of ownership and payment of stamp duty and real property tax, and a bankers draft/postal money order for $25 made payable to the Public Treasury.
A non-Bahamian or permanent resident who purchases or acquires an interest in condominium or property to be used by him as a single family dwelling, or for construction of such a dwelling, must apply to the secretary to the Investments Board to register the purchase. Application for Registration Form I must be filed with the Ministry of Financial Services & Investments, along with proof of ownership and payment of stamp duty and real property tax, and a bankers draft/postal money order for $25 made payable to the Public Treasury.2.Upon receipt of the above, the acquisition is registered and a certificate of registration issued.
Upon receipt of the above, the acquisition is registered and a certificate of registration issued.3.A permit to acquire property is required if the property is undeveloped land and the purchaser would become the owner of five or more contiguous acres. A permit is also required if the non-Bahamian intends to acquire land or an interest therein by way of freehold or leasehold, when the acquisition is not in accordance with (1).
A permit to acquire property is required if the property is undeveloped land and the purchaser would become the owner of five or more contiguous acres. A permit is also required if the non-Bahamian intends to acquire land or an interest therein by way of freehold or leasehold, when the acquisition is not in accordance with (1).4.Non- Bahamians who own homes in The Bahamas may apply to the director of immigration for an annual home owner’ residence card. This entitles the owner, spouse and dependent children to enter and remain in The Bahamas for the duration of the validity of the card. This is intended to facilitate entry, but does not confer resident status.
Non- Bahamians who own homes in The Bahamas may apply to the director of immigration for an annual home owner’ residence card. This entitles the owner, spouse and dependent children to enter and remain in The Bahamas for the duration of the validity of the card. This is intended to facilitate entry, but does not confer resident status.All applications for permits, along with fees made payable to the Public Treasury, should be submitted to the Ministry of Financial Services & Investments for consideration by the Investment Board.
The schedule of fees for a certificate of registration and permit are:
Fee Schedule
Application for registration $25
Application for permit $25
Upon issue of certificate of registration or issue of permit where:
1.The property value* is $50,000 and under - $50
The property value* is $50,000 and under - $502.The property value is more than $50,000 but less than $101,000 - $75
The property value is more than $50,000 but less than $101,000 - $753.The property value is $101,000 and over - $100
The property value is $101,000 and over - $100 Annual home owner’s residence card - $500
PARADISE SANDS ELEUTHERA
Copyright 2008 Paradise Sands Eleuthera
