Investing in Condominiums

Condominiums, which are very popular forms of investments, are governed by the Law of Property and Conveyancing (Condominium) Act, Ch. 139. They are acquired as second or vacation homes usually by foreign investors.

The Act makes it possible to own the fee simple of a unit while certain areas like paths and laundries are owned in common. Moreover provision has to be made for the passage of water pipes, electrical and air conditioning conduits, and similar services, through the privately owned individual units. The common areas are managed by a Management Company which is operated by the unit owners. 

The unit owner holds an undivided share of the common property in proportion to the value of his unit, and the latter determines the extent of his voting rights in the Management Company.

The Act requires that there be drawings and plans (section 5), and the Company must have bye-laws (sections 14 and 15). 

The cost of the maintenance of the common property is met by the unit holders in proportion to their entitlement. 

The basic document is the Declaration by which property is subjected to the provisions of the Act, and section 4 sets out the contents of this instrument. These include a description of the property and its precise location, a schedule presenting the unit entitlement of each unit, a description of the common property, the bye-laws applicable to the property, a statement of the rules and restrictions covering the use of and transfer of the units, and other relevant matters.

This post is for your information only and is not intended to constitute a legal opinion.  If you require specific advice you should contact a Bahamian real estate attorney.  You can contact a Bahamian real estate attorney by clicking here.