How to Buy a Home in Bahamas

Buying a home in the Bahamas can be an exciting prospect for expats. The beautiful beaches, warm climate, and friendly locals make it an attractive destination. However, the process of buying a home in a foreign country can be complex and challenging. This guide aims to provide you with the necessary information to navigate the Bahamian real estate market, from finding a property to understanding the legal requirements and potential pitfalls.

How do I find houses for sale in Bahamas?

There are several ways to find houses for sale in the Bahamas. Online property portals and real estate agencies are a good starting point. Local newspapers also list properties for sale. It's also worth considering hiring a local real estate agent who can provide valuable insights into the market and help you find a property that suits your needs and budget.

Are there restrictions on foreigners owning property in Bahamas?

Yes, there are some restrictions on foreigners owning property in the Bahamas. The International Persons Landholding Act requires non-Bahamians to obtain a permit from the government if they wish to purchase more than two acres of land or if the property is to be used for commercial purposes. However, foreigners can legally circumvent these restrictions by purchasing property through a Bahamian corporation, which they own.

Does Bahamas have an MLS type system?

Yes, the Bahamas has a Multiple Listing Service (MLS) system. This is a database of properties for sale that is shared among real estate brokers. It provides detailed information about each property, including price, location, and features. This system makes it easier for buyers to find properties that meet their criteria.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in the Bahamas must be licensed by the Bahamas Real Estate Association (BREA). You can verify a broker's license by checking with BREA. It's important to ensure that your broker is licensed to protect your interests and ensure a smooth transaction.

What documents are required when buying a home?

When buying a home in the Bahamas, you will need several documents. These include a valid passport, proof of address, a bank reference letter, and a personal reference letter. If you are buying property through a corporation, you will also need the corporation's articles of association and certificate of incorporation.

Do I need a lawyer when buying a home in Bahamas?

Yes, it's highly recommended to hire a lawyer when buying a home in the Bahamas. A lawyer can help you navigate the legal process, ensure all documents are in order, and protect your interests. The cost of a lawyer can vary, but it's typically around 2.5% of the property's purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in the Bahamas. Some buyers choose to pay in cash, while others take out a mortgage. If you choose to get a mortgage, keep in mind that non-residents may be required to make a larger down payment and the interest rates may be higher than in your home country.

Are there inspections that take place, and if so what is that process like?

Yes, property inspections are a common part of the home buying process in the Bahamas. A professional inspector will examine the property for any potential issues, such as structural damage or problems with the plumbing or electrical systems. The buyer typically pays for the inspection, which can help avoid costly surprises down the line.

What are some of the pitfalls to avoid when buying property in Bahamas?

When buying property in the Bahamas, it's important to be aware of potential pitfalls. These can include not thoroughly researching the property, failing to understand the local real estate laws, and not considering the total cost of ownership, including taxes, insurance, and maintenance. It's also crucial to ensure that the title to the property is clear and that there are no outstanding liens or encumbrances.

Expats Talk about Real Estate in Bahamas

"Above all I suggest renting when you first arrive and take the time to learn the island and make contacts before buying into anything. You will discover that some areas are much more desirable than others. The maintenance cost can also be drastically different depending on where you are located, remember that Nassau is subject to hurricanes and hurricane insurance is quite expensive," commented one expat living in Nassau, Bahamas.

" Thre are a lot of real estate companies here. Some of the better ones I have dealt with are: Adam Duncombe of ERA Dupuch Real Estate Marilyn Ayearst-Hartley of Bahamas Islands Realty Gavin Christie of C.A. Christie Real Estate and Claire Thackray of Mccarroll Real Estate Of course that is not to say the rest are all no good but I have come across some shady ones and so prefer to stick with the ones I know are honest and helpful. If you are looking to rent, you probably better off just asking around. Everyone knows people with homes for rent to expats and you will get a better deal not going through a real estate agent, just make sure you have a qualified person look over the lease agreement. If you want to build, speak directly with the builders, ask around to get the names of good ones. If you plan on building in a gated community the association can normally help you with finding a good builder as they don't want poorly developed homes in their community. ," commented one expat living in Nassau, Bahamas.