Nassau, Bahamas— It doesn’t matter if this is your first home purchase or fourth, closing day can be stressful and possess a lot of unknowns- particularly if you are a foreigner purchasing property in the Bahamas.

But that doesn’t have to be the case, according to Bahamas Real Estate expert Rachel Pinder, principle broker of Island Living Real Estate, a Bahamas realty agency.

“Having some basic information at-hand as you go into closing can mean the difference between feeling like a bundle of nerves or feeling at-ease because you know exactly what to expect,” Pinder, Bahamas Property expert, said.

There are several tasks that must be completed prior to closing. Among those items is a title search, according to the First Time Home Buyer Center Web site. A mortgage lender requires this to ensure that there is a clean title.

In the Bahamas, title search fees can cost between $250 and $500, according to an article written by Mario L. McCartney.

Title insurance also must be purchased to provide added assurance that the title is clean. A lender’s policy protects the mortgage lender should a flaw be detected, while an owner’s policy protects the person purchasing the property.

In many areas, a termite certificate is required to prove that the home has been inspected for termites and is free of termite infestation and damage. Pinder also recommends that buyers have a home inspection done to avoid any other problems that may not be visible.

The mortgage lender will require that the home buyer has homeowner’s insurance to cover damage or loss caused by fire, some weather-related disasters and theft, according to the FTHBC Web site.

“It also is important to note that buyers who require financing must have life insurance in place for closing,” Pinder, Bahamas Homes for Sale expert, said.

Closing

Closing day involves a lot of signatures and explanations of what is being signed. When purchasing Bahamas properties, the real estate transaction usually involves a purchaser and a seller, each of their attorneys and a real estate broker, Pinder said.

Prior to closing, the seller has accepted the buyer’s offer and the buyer has made a deposit on the property.

At that point, the broker or a real estate attorney drafts a sales agreement, which is executed by the buyer and the seller. The fee for drafting a sales agreement through an attorney can cost $150 to $500, McCartney said in his article.

Once the agreement is executed, a copy of the conveyance is held in escrow until the sale is completed.

The home seller is paid on closing day and the buyer sends the conveyance to the government registry to be recorded.

Buying a home typically involves a down payment of 5 to 10 percent. Stamp duty fees also will be due at closing. These are paid to the Bahamas government when property ownership is transferred. The amount of stamp duty charged depends upon the cost of the property. It is common for the seller and the buyer to each pay half of this fee.

Stamp duty fees vary according to value, as follows:

Land value Stamp duty

• Up to $20,000: 2 percent

• $20,000 – $50,000: 4 percent

• $50,000 – $100,000: 6 percent

• $100,000 – $250,000: 8 percent

• $250,000 or more: 10 percent

Stamp duty fees also are charged for other deeds, such as affidavits, McCartney said. Recording fees average about $4.50 per page and make up a minimal portion of the overall closing costs.

Legal fees can cost: 1.25 to 2.5 percent of the purchase price, and real estate commissions typically are between 7 and 10 percent, Pinder, Bahamas Rental Property expert, said.

The Bahamas also has fees that apply to buyers who aren’t Bahamian citizens, McCartney said. Foreigners typically must apply to the Bahamas Investment Board to obtain approval to purchase Bahamas real estate for sale.

For non-citizens, there is a requirement to complete an application to the Ministry of Finance, which costs between $125 and $250. This mandatory application must be approved and should be recorded in the registry of records with other deeds and documents involved in the subject transaction.

Home buyers who aren’t citizens also must purchase an Annual Homeowners’ Residence Card, McCartney said. That cost is estimated at between $550 and $750 annually.

“Knowing all of this information going into closing means the home buyer is prepared and likely won’t face any surprises,” Pinder, one of the best Bahamas Realtors, said.

Learn More

If you would like more information on purchasing Bahamas real estate and the closing costs that are involved, or you would like to learn more about the services offered by Island Living Real Estate, please visit their Web site: http://www.islandlivingrealestate.com/.

About Island Living Real Estate

Rachel Pinder is the Bahamas Investment Property expert of Island Living Real Estate. Along with her team of brokers, Hazel Wicky, Brenda Knowles and Anthony Wells, the company has more than 25 years of experience in real estate sales and development throughout the Bahamas.

Island Living has Realtors available to assist buyers and sellers with all their real estate needs.

Island Living’s main office is located in one of Nassau’s oldest historic buildings on Bay Street, named “Red Roofs.” Red Roofs was built in 1896 and has been home to various families, a Gourmet Deli and now Island Living.

Island Living Real Estate- bringing the life of the islands to your front door!

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