Current Real Estate Legislation:
The International Persons Landholding Act 1993 encourages non-Bahamians to purchase a second home in the Bahamas. If a non-Bahamian acquires a single family dwelling or vacant land to be used in the construction of such a dwelling then he no longer need obtain a permit from the Government (Investments Board) prior to purchase. He need only register the acquisition subsequently with The Investments Board.

Note that the non-Bahamian will require an application for, and approved permit, if (1) the property is undeveloped land of five acres in size or larger (2) the property is not a private residence, or is not intended for development as such.

The Act offers further incentives including the provision that a non-Bahamians no longer pay a double rate of stamp duty.

Furthermore, a non-Bahamian owning a home in the Bahamas is now able to obtain an annual home owner resident card (with application and a fee). This card authorizes the entry of the holder and his immediate family provided there are no restrictions under the Immigration Act.

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Schedule of Fees:
Application for registration - $25.00
Application for permit - $25.00

Certificate of Registration
(A) the value of the property is $50,000 or less - $50.00
(B) the value of the property is over $50,000 but under $101,000 - $75.00
(C) the value of the property is $101,000 and over - $100.00

Home owner resident card - $500.00

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Stamp Tax:
Stamp tax is payable on all conveyances, assignments or transfers of all real property:

Up to and including $20,000 - 2%
From $20,000.01 to $50,000 - 4%
From $50,000.01 to $100,00 - 6%
From $100,000.01 to $250,000 - 8%
$250,000.01 and over - 10%

It is customary for the tax to be shared equally between buyer and seller unless otherwise agreed upon.

Real Property Tax:
Owner Occupied Property

First $100,000 - tax exempt
Next $400,000 - 1% of market value*
Excess over $500,000 - 1.5% of market value*

Other Property including Unimproved Property

First $500,000 - 1% of market value*
Excess over $500,000 - 2% of market value*

*market value is defined as the amount the property would realize if sold in the open market without any encumbrances or restrictions.

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Real Estate Commission*

Vacant lot, acreage: 10%
Improved property: 6%

*calculated on the gross sales prices

Real Estate Sales Listings:

There several different types of real estate sales listing agreements in the Bahamas:

Open Listings - The property owner signs a listing agreement with any number of Realtors, the Realtor that sells the property is entitled to the commission. The owner may also sell the property her/himself and if so, is not obligated to pay any commission to any of the open listing agencies.

Exclusive Listing - The property owner signs an exclusive listing of the property to one real estate company, there will be a time period defined in the agreement, this entitles the listing agent to the commission regardless of who sells the property. With an exclusive listing the Realtor is now able to co-brokerage the property with other Realtors at an agreed commission split.

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The Bahamas Real Estate Association:
The Bahamas Real Estate Association (BREA) is the only association in The Bahamas which unites Real Estate Brokers and their Associates for the purpose of; exerting a combined positive and effective influence on matters affecting their profession; promoting and maintaining the highest standard of conduct in the transaction of the Real Estate profession as expressed in the code of ethics adopted by the Association and to enforce this code among its members.

Effective January 1, 1996 all persons practicing real estate in The Bahamas are required by law to hold either a Brokers or Salesman’s license and membership within BREA.

If you are considering the services of a Realtor it is in your best interest to ensure that they hold a valid license. BREA offers its membership on going education and training, up to date market information and most importantly a network of Brokers and Associates who work closely with each other and respect a strict code of ethics.

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The Purchase Process:
Once the terms and conditions of a purchase have been agreed upon between the buyer and the seller your Broker will draw up a Sales Agreement (a written contract) which includes a description of the property and a closing date. At this time a 10% deposit is usually obtained and a title search done.

On the closing date a conveyance is executed and the balance of monies paid including stamp duty, property tax, outstanding bills and the sales commissions. The legal fees incurred during this process usually range from 1.5%-2.5%.

All persons having closed a real property purchase should ensure that their deeds and title are recorded in the Registry of Records in Nassau at a minimal registration fee.

Non-Bahamians should also register their investment with the Central Bank of The Bahamas – Exchange Control to insure that upon resale they will be able to remit the net proceeds of the sale outside of the Bahamas in the currency of the original

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Contacts:
Bahamas Investment Authority
Office of The Prime Minsiter
Cecil-Wallace Witfield Centre
Cable Beach
P.O. Box CB 10980
Nassau, Bahamas
TEL: (242) 327-5970-4
FAX: (242) 327-5907
www.bahamas.com/investment

Register General Department
Rodney Bain Building
P.O. Box N-532
Nassau, Bahamas
TEL: (242)322-3316-8
FAX: (242) 322-5553

Bahamas Real Estate Association
Shirley Street
P.O. Box N-8860
Nassau, Bahamas
TEL: (242) 325-4942
FAX: (242) 322-4649

Bahamas Financial Services Board
Windermere House East Bay St
P.O. Box SS-5539
Nassau, Bahamas
TEL: (242) 393-8777
FAX: (242) 393-9021
Email: bfsb@bahamas.net.bs

Central Bank of The Bahamas
Fredrick Street
P.O. Box N-4868
Nassau, Bahamas
TEL: (242) 322-2193
Email: centralbankbah@batelnet.bs

Computitle Ltd – Title
Parliament Street
P.O. Box N-4645
Nassau, Bahamas
TEL (242) 322-7366