Grand Hyatt Baha Mar
Buyers Guide

The Process

Once a sale price is agreed upon and the terms and conditions are acceptable to both parties, a sales agreement is prepared and signed by both parties and a 10% deposit is paid by the Purchaser and held by the Vendor's attorney or Real Estate Company. The Vendor's attorney will forward the Purchaser's attorney all relevant title documents allowing a title search of the property and any application for permits needed to be made. Once a satisfactory title search has been completed, a conveyance is prepared by the Vendor's attorney and executed by the Vendor. If there are any covenants on the property, the Purchaser also signs the conveyance. The balance of the sale price is then paid and disbursements paid. In this transaction, both parties are required to have legal representation by a Bahamian Attorney. Dual representation is not uncommon and usually results in lower legal fees. Each party is responsible for their own legal fees, which are assumed at a maximum of 2.5% per side, and half of the Government stamp duty, unless otherwise agreed.

Stamp Tax Schedule
Up to and including $20,000.00 = 4%
From $20,000.01 to 50,000.00 = 6%
From $50,000.01 to $100,000.00 = 8%
From $100,000.01 and over = 10%

Real Property Tax - Owner Occupied
First $250,000 tax exempt
In Excess of $250K but less than $500K = 0.75%
In Excess of $500K but less than $5M =1%
In Excess of $5M = 0.25%

Real Property Tax – Unimproved property other than unimproved property exempt by virtue of Section 39 of the Real Property Tax Act
:
Up to $7K = $100
In Excess of $7K = 1.5%

Real Property Tax - All Other Property
First $500K =1%
In Excess of $500K = 2%

(All values are based on the market value of the property)

Real Estate commissions are set by The Bahamas Real Estate Association (BREA) and are as 6% on developed property, 10% on vacant land and 10% for Out Island property, whether land, home or commercial properties. As of January 1st 1996, any person practicing Real Estate in The Bahamas must hold an active Broker's or Salesman's license and membership with BREA. BREA offers regular educational courses to its members and strives to maintain a high standard of excellence from its members. Visit their website for more on how the association operates at: www.bahamasrealestateassociation.com

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