Questions regarding Bahamian law

I have noticed through tracking the types of search engine queries that have led to views of my blog, that there have been some very specific searches relating to various areas of Bahamian law.  I invite you to send me a message on this site or to my e-mail if you have specific questions that are not dealt with in any of my posts.  The posts are designed to be as general as possible and only to answer basic questions.  In a lot of cases, specific questions will require specific information about your situation, which is why I welcome personal queries.  I am happy to assist in any way that I can.

You may feel free to contact me by clicking here.

Registration of Foreign Companies in The Bahamas

The Companies Act 1992 which came into force on the 1st August, 1992 contains provisions for the registration of foreign Companies in The Bahamas.

A foreign Company, for purposes of registration under the Act, includes any body formed outside The Bahamas whether it is an incorporated body or an unincorporated one.

If a foreign Company wishes to begin or carry on any business or undertaking in The Bahamas after the 1st August, 1992 then it must register under the Act. (This requirement is waived however in the case of foreign Companies who have carried on an undertaking in The Bahamas prior to that date.)

Examples under the Act of what will amount to an ‘undertaking’ include the keeping of a place of business; the holding of a licence (or being required to do so) for specific business; the holding of a licence (or being required to do so) for selling its own securities. If a foreign Company has a local telephone listing in The Bahamas an undertaking is presumed.

Procedure for Registration

1. The foreign Company must file:

(a) a Statement containing information as in the attached Form I;

(b) if the Statement at (a) is in a language other than English, a translation thereof into English certified as a true copy. This Certificate should be given by a Notary Public or a translator before a Notary Public;

(c) a Declaration by a Director as in the attached Form II;

(d) a Declaration by an Attorney as in the attached Form III. We are available to assist in this connection; and

(e) a copy of the Charter and Bye-laws or other constitutional documents of the foreign Company certified as a true copy. This Certificate should be given by the proper officer of the Registry or Agency where the foreign Company is registered [in The Bahamas this would be the Register General]. If possible the document should be further legalised by Apostille in those jurisdictions where the Apostille is available.

If the copy of the Charter and Bye-laws are not in English a certified translation will be required. 

2. There is a registration fee in the amount of $50.00.

3. The Registrar General shall issue a Certificate of Registration and publish a notice in the Gazette.

Effect of Registration

The foreign Company upon registration may carry on its undertaking in The Bahamas in accordance with its Certificate and with the general provisions of the Act.

Miscellaneous

1.   The foreign Company must maintain a registered office in The Bahamas the address of which must be notified to the Registrar General.

2.   The name and the place of business of the foreign Company must be exhibited outside the registered office and outside all its other places of business in The Bahamas.

3.   The name must also be given on all commercial and other instruments of the foreign Company.

4.   If the proposed undertaking of the foreign Company is to be carried on with a view to obtaining a turnover or the receipt of money from that business within The Bahamas then the foreign Company will be obliged to obtain an annual licence under the Business Licence Act. The foreign Company can however apply to The Bahamas Exchange Control for their designation as “non-resident” in which circumstance fees payable in respect of its business licence will be a flat $100.00 per annum (and not as otherwise, a fee based on the turnover). If you require further detail on this, let us know.

(FORM I)

[ NAME OF COMPANY]

STATEMENT GIVEN IN PURSUANCE OF SECTION 182(1)

OF THE COMPANIES ACT, 1992

(a) THE NAME OF THE COMPANY IS [name ]

(b) THE COMPANY WAS INCORPORATED IN [country or state ]

(c) THE COMPANY WAS INCORPORATED ON

(d) THE COMPANY WAS INCORPORATED AND ORGANIZED UNDER THE LAWS OF ON 19 , BY

(e) THE CORPORATE INSTRUMENTS OR CONSTITUTIONAL DOCUMENTS OF THE COMPANY ARE ITS [state whether Charter, Byelaws, Memorandum of Association, Articles of Association or whatever as the case may be]

(f) THE DURATION ACCORDING TO ITS CORPORATE INSTRUMENTS OF THE COMPANY IS [state Perpetual or other period as the case may be]

(g) THE LIABILITY OF THE SHAREHOLDERS IS LIMITED TO THE EXTENT OF [state: the payment of share capital or however else liability may be limited as the case may be]

(h) THE PROPOSED UNDERTAKING OF THE COMPANY IN THE BAHAMAS IS to [ insert purpose]

(i)   THE COMPANY INTENDS TO COMMENCE ITS UNDERTAKING IN THE BAHAMAS [state date, period after registration, period after being licensed, etc. as the case may be.]

(j)   THE AUTHORISED OR STATED CAPITAL OF THE COMPANY IS [state authorised or nominal capital amount] DIVIDED INTO [state number] SHARES [state par value, if any]. THE NUMBER OF SHARES THAT HAVE BEEN SUBSCRIBED FOR ARE [state number]. THE NUMBER OF SHARES THAT ARE FULLY PAID UP ARE [state number]

(k) THE PRINCIPAL ADDRESS OF THE COMPANY OUTSIDE THE BAHAMAS IS [state address of registered office]

(l)   THE PRINCIPAL ADDRESS OF THE COMPANY IN THE BAHAMAS IS           , Nassau, Bahamas

(m) DETAILS OF THE DIRECTORS OF THE COMPANY ARE THE FOLLOWING:-

 

NAME ADDRESS OCCUPATION

                                                                                                                                          (FORM II)

[Country]

[City]

DECLARATION MADE PURSUANT TO SECTION 182(2)

OF THE COMPANIES ACT 1992

_____________________________________________

I, the undersigned Director of [name of Company] hereby declare for and on behalf of the said Company that the particulars relating to it and which are set out in the attached Statement are correct and true.

IN WITNESS WHEREOF I have hereunto set my hand this        day of  2005 .

_______________________________________

[Name of declarant]

DIRECTOR, [Name of Company]

(FORM III)

COMMONWEALTH OF THE BAHAMAS

New Providence

DECLARATION MADE PURSUANT TO SECTION

182(2) OF THE COMPANIES ACT 1992

_________________________________________

I, the undersigned, a Counsel and Attorney-at-Law of  #4 Cable Beach Court , West Bay Street, Cable Beach, New Providence, Bahamas and an associate of Anthony Thompson & Company Counsel and Attorneys-at-Law hereby declare that [ name of company] has complied with the requirements of section 182 of the Companies Act 1992 in order to register as a foreign Company and have issued to it a Certificate of Registration.

 

_____________________________

[Attorney’s name]

Before me, at Nassau, New Providence this       day of 2012

_____________________________

NOTARY PUBLIC

This post is intended for your information only and nothing contained in this post is intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian corporate attorney or Bahamian corporate services provider.  You can contact a Bahamian corporate attorney or a Bahamian corporate services provider by clicking here.

Problems at work in The Bahamas (unfair dismissal | Employment law | Labour Law)

Get advice early

Employment law can be complicated, and few people have a clear idea of all their rights at work. If you think your employer has treated you unfairly, it is important to get legal advice at the earliest opportunity. In some circumstances there are particular steps you must follow to sort problems out with your employer before you can take a complaint to an employment tribunal, as well as specific deadlines for making such complaints. Generally, the longer you leave a problem, the harder it is to solve.

An attorney can:

• explain your options;
• tell you if you have a legal case against your employer;
• help you decide whether your case is worth taking further; and
• explain what you should do next.

Finding an attorney

If you need to find a Bahamian employment lawyer, you can click here and e-mail your query.

If you are a trade union member, you may be able to get legal advice from a union official or an attorney appointed by the union.

Starting the process

Once you have found an attorney, you should explain your situation briefly over the phone and set a date for a meeting.

Make sure that you mention the dates of the events you are concerned about. If you plan to take someone with you to the meeting, mention this and ask if there are any documents you need to bring.

What your attorney will need to know

At the meeting your attorney is likely to ask you:

• how long you have worked for your employer;
• how much you earn;
• the details of your problem at work;
• what events have led you to your current situation;
• whether you have any relevant documents;
• whether there are any documents which you do not have that might be relevant to the case; and
• what, if anything, you have already done to sort the matter out.

Exploring the alternatives

Once you have explained your circumstances in detail, your attorney can explain your options. If your attorney believes you have a case and you want to take it further, you need to decide how you are going to do this.

If you have not already done so, you may need to try to sort the problem out with your employer direct before taking any other action. Your attorney can help you set out your case and, if appropriate, try to negotiate a settlement for you. If you are happy to carry out negotiations directly with your employer, your attorney can offer useful advice on how best to go about doing this.

If you cannot solve the problem with your employer direct, an employment tribunal may be your best option. If so, your Bahamian employment lawyer can help by preparing your case or representing you at court or the tribunal.

Following your employer's procedures

It is important to try to sort out your problem with your employer direct first, either informally or using their formal complaints/grievance procedure.

If you have started using your employer's complaints procedures or if your employer has started to take action against you (for example, about your behaviour, the quality of your work, your ability to do your job or your attendance) you should try to go to any meetings that are arranged and use any appeal procedures your employer has in place.

You should try to solve your problem with your employer direct because:

• matters can often be sorted out quite quickly this way; and
• employment tribunals can reduce your compensation if you haven't tried to sort out the matter with your employer before taking your case to them.

Compromise agreements

If you can reach an agreement with your employer without going to a tribunal, this can be recorded in a 'compromise agreement'. This is a legal document which confirms the terms of the settlement you have agreed, in exchange for which you give up your legal claim against your employer. You may be able to get your employer to make a contribution to your legal costs as part of the agreement.

Employment tribunals

An employment tribunal is chaired by a lawyer and made up of two independent 'wing' members with experience of employment relations. It is up to the tribunal to:

• weigh up the evidence;
• consider the law; and
• decide whether your claim against your employer is justified.

In doing this the tribunal may also consider:

• what policies or procedures your employer has for dealing with problems at work;
• your behaviour and your employer's behaviour throughout the time you were employed; and
• what steps you and your employer have already taken to solve the problem.

Decisions are made by majority vote and decisions are either announced straight away or follow in writing. If the tribunal decides in your favour, it has the power to award you compensation. Or if you are claiming for unfair dismissal, it can sometimes order your employer to give you your job back, though this is rare.  

Claiming unfair dismissal

Generally, you are only entitled to make a claim for unfair dismissal once you have been employed for a year or more, full or part-time. However, if you are dismissed for any of the reasons described below, your dismissal is 'automatically unfair'. This means that you are protected by law from the first day of your employment. These reasons include:

• trade union membership or duties;
• whistle-blowing (telling your employer or someone else about anything illegal or dangerous you know is happening at work);
• health and safety issues; and
• exercising a legal right, such as your right to a minimum wage, paid leave, leave for family reasons including pregnancy or maternity, a written statement of your terms and conditions of employment, or an itemised pay statement.

Discrimination

If you believe that you are being treated less favourably than other employees for any of the reasons set out below, you may have a discrimination claim. You are protected against discrimination based on any of the following.

• Your sex (including reasons related to being pregnant or being married)
• Your sexuality (sexual orientation)
• Your race (including your skin colour, nationality, and ethnic background)
• Your religion and beliefs
• Your disability
• Your age

You can make a claim to the tribunal if you have been less favourably treated at any stage of your employment. This includes how you were treated when you applied for the job and were interviewed, as well as during your employment or after your employment ends. Your attorney can tell you more about this.

Attorneys' charges

Charges can vary between attorneys. They depend on:

• the experience and knowledge of the attorney; and
• how complicated your case is.

If your attorney acts as a consultant in helping you to prepare your case but does not actually represent you, their charges are likely to be based on an hourly rate. However, if the case goes to a tribunal, other types of fee arrangement may be more suitable.




This post is for your information only and nothing contained in this post is intended to constitute a legal opinion.  If you require detailed advice you should contact a Bahamian Labour attorney.  You may contact a Bahamian labour attorney by clicking here.

Licensing of Banks and Trust Companies in The Bahamas

The Bahamas is one of the world’s largest international financial centres, with progressive legislation and a cohesive regulatory structure. With convenient air travel, a highly-skilled workforce, modern infrastructure, and a politically sound government, The Bahamas has become the jurisdiction of choice for banking and financial services.

 The jurisdiction’s commitment to maintaining a tax neutral platform, offering exemption from taxes on income, capital gains, profits, gifts, inheritance and estate, taxes, and common law and statutory recognition of confidentiality in customer relations contributes to its global success in banking and financial services. With an asset base in excess of $200 billion, The Bahamas’ banking centre is positioned among the top ten countries in the world, behind the United States, Switzerland, and the United Kingdom.

The international community has continued to affirm The Bahamas as a safe jurisdiction for the deposit of financial assets of both individuals and corporations.

Banks and trust companies in The Bahamas are supervised by The Central Bank of The Bahamas (“the Central Bank”), a responsive regulator which ensures the highest standards of operations and conduct in the financial services industry. The Bahamas has instituted Know-your-customer procedures and has passed a series of laws in relation to banks and in conformity with international concerns, including but not limited to legislation geared towards eradicating international financial crime e.g. the Financial Transactions Reporting Act, 2007 and the Proceeds of Crime Act, 2008.  The private sector also has in place regulations to govern banks and trust companies. The Association of International Banks and Trust Companies of The Bahamas also governs itself and its operations by its code of conduct, which deters the use of financial operations for criminal activities and maintains confidentiality in banking and financial affairs.

Bank or Trust Company Defined

The Banks and Trust Companies Regulation Act, 2000 defines “banking business” as “the business of accepting deposits of money which may be withdrawn or repaid on demand or after a fixed period or after notice and employing those deposits in whole or in part by lending or otherwise investing them for the account and at the risk of the person accepting them.”

“Trust business” is defined as “the business of acting as trustee, executor or administrator.”

Who May Own a Bank or Trust Company in The Bahamas

Individuals may participate in the ownership of banks, but only with a minimum 25% participation from a Central Bank approved financial institution. The Central Bank also favours granting licenses to the branches and subsidiaries of established, reputable banks and trust companies originating from jurisdictions with similar regulatory controls in place. Parallel-owned banks, i.e. where a bank in one jurisdiction has the same or similar ownership as a bank in another jurisdiction and where one is not a subsidiary of the other, are not eligible to apply for licensing.

License Classifications

There are four classes of licenses issued by the Central Bank:

 Public License: A public bank and/or trust company is one which is permitted to carry   on banking and/or trust business with members of the public.

 Restricted License: A restricted bank and/or trust company is one which is allowed to   carry on business for certain specified persons which are usually named in the license.

 Nominee Trust License: A nominee trust license restricts the services that may be offered by a licensee to the provision of nominee services only. Nominee services include the holding of securities and other assets in the licensee’s name and the provision of corporate directors and officers on behalf of its parent company’s clients.

 Non-Active License: A non-active bank or trust company is one which is either in voluntary liquidation and requires monitoring of its winding up or one that is an approved dormant licensee.

Procedures and Documentation

Any person or company wishing to carry on banking or trust business is required to make an application to the Governor of the Central Bank for the grant of a license. The Central Bank licenses all banks and trust companies operating in and from within The Bahamas.

In the case of a bank or trust company making application for a license to operate a subsidiary, branch or representative office or in the case of a corporate applicant which is not a bank or trust company, the following information is required:

 name of the corporate applicant (if not a bank or trust company);

 address of head or parent office of the corporate applicant including mailing address;

 for a subsidiary bank or trust company, the corporate name;

 address of the proposed office in The Bahamas;

 scope of activities proposed;

 an outline of planned business activities in The Bahamas;

 where the applicant is a body corporate:

-       History, activity, present structure and organization;

-       Annual reports (including audited consolidated financial statements) of the corporate applicant or parent for the three consecutive financial years immediately preceding the date of application;

-       Unaudited consolidated financial statements of the applicant or parent as at the end of the most recent quarter prior to submission of the application, certified by a director or senior officer.

In the case of individual applicants for a license to operate a bank or trust company, applications may be made as a group (so long as the group consists of more than five individuals), the following information is required:

 name of each individual making application;

 business and personal address of each individual applicant including mailing address;

  proposed corporate name of the bank or trust company;

  address of the proposed entity in The Bahamas;

 purpose of opening the bank or trust company;

 a description of planned business activities; and

 where the application is made by a group;

-       date of formation, history, present structure and organization of the group applicant, and details of all business activities of the group;

-       detailed comments regarding the position within the group, of any dominant member(s) of the group;

-    a current statement of assets and liabilities, certified by public accountant and prepared no earlier than three months prior to the date of application for each member of the group who is to acquire, own, hold or exercise voting control of share capital in excess of 10% of the share in a proposed licensee or

-    A concise net worth statement certified by a public accountant for each member of the group who is to acquire, own, hold or exercise voting control of share capital in a proposed licensee of 10% or less, and which statement indicates that the individual member’s net worth is at least five (5) times the value of the shares to which the individual member is subscribing.

Corporate and other applicants are also required to provide a host of other documentation to enable the Central Bank to assess the soundness of the applicant and the integrity of its members. The Central Bank has promulgated “General Information and Guidelines for License Applications” which sets out the procedures and documentation necessary for license applications (see specifically Part 2, page 7).  We will be happy to provide you with a copy of the guidelines if you are unable to obtain same from the Central Bank's website.

Timeframe

The typical timeframe for processing a license application is 2 months; however, the time frame is dependent upon the nature of the application.

This postis for your information only and nothing contained in this post is intended to constitute a legal opinion.  If you require any detailed advice you should contact a Bahamian commercial attorney.  You can contact a Bahamian commercial attorney by clicking here.

BAHAMAS - MERGER PROCEDURES - FOREIGN COMPANY SURVIVING

1.         Merger must be permitted by the laws of the country in which the foreign company is expected to survive.

2.         A resolution of the Board of Directors and a resolution of the Shareholders for the merger and a Plan of Merger must be prepared by the Bahamian company.

3.         A certified copy of the resolution of the Bahamian company approving the amalgamation has to be filed with the foreign registry.

4.         A Deed Poll Declaration by the foreign company appointing the Registrar General of the Bahamas as agent for the Bahamian company must be prepared and filed with the Registrar General in Nassau.

5.         A certified copy of the Certificate of Merger issued by the foreign registry must be filed with the Bahamian Registrar General.

MERGER WITH A BAHAMIAN COMPANY - BAHAMIAN COMPANY SURVIVOR

1.         The Directors of both companies shall approve a written Plan of Merger containing the details required by Section 74 (3) of the International Business Companies Act.

2.         The Shareholders of both companies must approve the Plan of Merger.

3.        Certified copies of the foreign company’s Memorandum and Articles of Association and Certificate of Incorporation, together with the Articles of Merger and Plan of Merger and the appropriate fees shall be filed with and paid to the Registrar General and a Certificate of Merger obtained. 

This post is for your information only and nothing in this post is intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian corporate attorney or a Bahamian corporate services provider.  You can contact a Bahamian corporate attorney or a Bahamian corporate services provider by clicking here.

Bahamas | Companies Limited by Guarantee

The InternationalBusiness Companies Act, 2000 (the “IBC Act”) provides for one of four types of companies to be incorporated. These are as follows:

 A company limited by shares;

 A company limited by guarantee;

 A company limited by shares and by guarantee; and

 A company with unlimited liability.

A Company Limited by Shares

This type of company is by far the most common type.  Shareholders of this type of company are essentially owners of the company and such a company obtains its capital from the issue of shares to its shareholders. The liability of the members or shareholders of this type of company is limited to the amount, if any, unpaid on the shares held by such shareholder. The IBC Act requires that for such a company, the Memorandum of Association contain a statement of, “the authorised capital of the company setting forth the aggregate of the par value, if any, that the company is authorised to issue and the amount if any, to be represented by shares without par value that the company is authorised to issue”. – Section 13(1)(f).

A Company Limited by Guarantee

A company limited by guarantee only is a company where the liability of its members is limited to an amount guaranteed by its members to contribute to the assets of the company in the event that it is wound up. The IBC Act requires that for such a company, the Memorandum of Association contain a statement that, “each member undertakes to contribute to the assets of the company, in the event of a winding up during the time that he is a member, or within one year afterwards, for payment of the debts and liabilities of the company contracted before the time at which he ceases to be a member, and of the costs, charges and expenses of winding up the company and for the adjustment of the rights of the contributories amongst themselves, such amounts as may be required, not exceeding an amount to be specified therein”. – Section 13(1)(g).

A Company Limited by Shares and by Guarantee

This is essentially a hybrid between the company limited by shares and a company limited by guarantee. The IBC Act

provides that for such a company, the Memorandum of Association has to include therein the statements contained in sections 13(1)(f) and 13(1)(g). – Section 13 (1)(h).

A Company with Unlimited Liability

With this type of company, its members have no limit on their liability, thus having unlimited liability. The IBC Act requires that for such a company, the Memorandum of Association contain a statement that the liability of the members is unlimited. – Section 13(1)(i).

This post will discuss companies limited by guarantee, including such companies limited by both guarantee and by shares, under the IBC Act, and some of the general uses of companies limited by guarantee.

Companies Limited by Guarantee

This type of company is considered to be the guarantee company in its “purest form”. As discussed above, the memorandum of association of such a company has to contain a clause stating that each member undertakes to contribute to the assets of the company, in the event of a winding up during the time that he is a member, or within one year afterwards, for payment of the debts and liabilities of the company contracted before the time at which he ceases to be a member, and of the costs, charges and expenses of winding up the company and for the adjustment of the rights of the contributories amongst themselves, such amounts as may be required, not exceeding an amount as specified in the memorandum. It is imperative that such amount be specified in the memorandum of association.

Also, the guarantee is only relevant on a winding up of the company and is relevant in respect of the debts and liabilities of the company contracted before the time at which a member ceases to be a member, and of the costs, charges and expenses of winding up the company and for the adjustment of the rights of the contributories amongst themselves.

A company limited by guarantee has to include the word “limited” as part of its name and as is the case with a company limited by shares, such company has separate legal personality.

The members of such a company do not contribute initially to the capital of the company and such a company would obtain working capital or funds from alterative means such as fees, charges, donations etc. It follows then that such a company is best suited for non-commercial purposes. Such companies are typically used for charities, other non-profit organizations, professional associations, homeowners associations etc.

Companies Limited by Guarantee and by Shares

This is a hybrid between the company limited by guarantee and the company limited by shares with characteristics of both being present. Such a company can have a share capital and raise capital from its members by the issue of shares and also provide for its members to guarantee to contribute on a winding up of the company. As stated above, in the case of such a company, the memorandum of association has to state the authorised capital of the company setting out the aggregate of par value or the amount if any, to be represented by shares without par value and a statement pertaining to the amount each member will contribute to the assets of the company on a winding up.

Members of such a company can be liable to an amount unpaid on their shares and to the guarantee which may become necessary on the winding up of the company or will only be liable to the guarantee in the event that they are not issued shares, which guarantee may become necessary on the winding up of the company.

Uses of Guarantee Companies

 Charities

One of the most common uses for a company limited by guarantee is a charity or non-profit organization that requires a corporate structure. This is useful as a charity in that it is company which provides the benefit of a separate legal entity but without the personal benefits due to members in the case of a company limited by shares, that is, with a company limited by guarantee there is no requirement for profits to be distributed to members but instead can be retained by the company.

 Quasi-trusts for Persons Unfamiliar with Trusts

 A company limited by guarantee can be an attractive vehicle for persons who would wish to create a trust but are not comfortable with a trust, for example individuals from civil law countries. Such persons can use a company limited by guarantee and structure it to operate like a trust. In such a case the company limited by guarantee could operate like a foundation.

 Tax considerations

Generally speaking, such a company is exempt from Bahamian Exchange Control Regulations and from the payment of stamp duty.  Additionally, such companies are also exempt from any corporation taxes, withholding taxes, capital gain taxes or any other tax on income or distributions payable.

 Reinvestment

A company limited by guarantee can be used in structures where the main objective is to reinvest any potential profits back into the company, without making distributions to shareholders, hence any potential profits or surplus can be reinvested into and by the company.

 Protectors or Enforcers for Trusts or Foundations

A company limited by guarantee can be formed to act as a Protector or Enforcer for a trust or foundation. This use is becoming increasingly popular as the death of a member need not occasion a probate application in The Bahamas.

The information in this post is for your information only and nothing contained in this post is intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian corporate attorney or a Bahamian corporate services provider.  You can contact a Bahamian corporate attorney or a Bahamian corporate services provider by clicking here.

Bahamas | Why do I need to use a Bahamian Real Estate Attorney?

A Bahamian real estate attorney is a legal professional that handles real estate transactions. A real estate attorney knows how to complete the documentation, ensure a clear title and manage the entire process of property acquisition. Properties can be either commercial or residential .

Real estate transactions can be very complex. If the past owners didn't posses proper permits for construction or mortgage liens, then they can be better managed by a real estate attorney. Real estate disputes have to be resolved with mediation, arbitration or litigation, which only can be done by a qualified and motivated real estate attorney.

You should contact your Bahamian real estate attorney if you are considering entering into a real estate transaction: be it a purchase of property or if you plan on entering into a residential lease or commercial lease.  A basic (and non-exhaustive) general list of the types of tasks that your Bahamian real estate attorney will handle are as follows.

If you’re buying a home, your lawyer should:

·         Help you understand the purchase contract, including how you will take title on the property.

·         Check that there are no covenants, easements, liens, etc. registered against the property that will impede your use of it.

·         Prepare and register all the legal documents.

·         Clarify the terms of the mortgage and work with your bank, if necessary, to modify them.

·         Scrutinize the adjustments, including taxes owing and utilities costs paid, prior to the transaction closing.

·         Attend the closing and review all the papers you will be required to sign.

·         Arrange title insurance protection to protect you from losses due to title defects.

·         Ensure you receive a valid registered ownership subject only to the liabilities you have accepted.

If you’re selling a home, your lawyer should:

·         Review the binder and review or prepare the purchase and sale agreement, including negotiating its terms.

·         Prepare the deed and power of attorney if necessary.

·         Deal with title issues as they arise and help correct them.

·         Attend the closing and review all the papers you will be required to sign.

·         Arrange for transfer of security deposits.

·         Arrange for insurance certificates if needed.

Remember that lawyers belong to a regulated profession with standards they must meet and insurance to cover damages if they make an error or omission. You don’t necessarily have the same standards or recourse dealing with other advisors. And this isn’t the time to do-it-yourself.  The potential cost of an error or omission can be great and the worst-case scenario is that you may wind up with defective title or, even worse, no title to the property that you have paid all your hard-earned money for.

If you require advice from a Bahamian property law specialist you may contact a Bahamian real estate lawyer by clicking here.