With John Cash Realty as your real estate agency, we will help you reach the level of confidence that allows you to purchase that perfect property. Our Managing Broker and all of our agents have extensive knowledge of the local Bahamian real estate market. Our commitment to excellent service has led to numerous happy clients and endless referrals. We hope that you will allow us the privilege of assisting you in this endeavor. We will be happy to inform you about investing in our country. Our agents are licensed members of the Bahamas Real Estate Association (BREA) and network with all Bahamian and international realtors. We can represent you at any of our many islands in The Bahamas, including new developments. At John Cash Realty, our commitment is to turn your dream of home ownership into reality, while looking out for your best interest.
Buying Real Estate In The Bahamas With John Cash Realty Representing You:
As a professional real estate agency at John Cash Realty, it is our job to help you every step of the way. Our first goal is to meet with you and assess your needs. Together, we will determine what you want in a home, where you want to live, and what you can afford. We will also prioritize your wants, so that we will know which attributes you want most in your future home.
Next, we will begin showing you homes that meet your criteria – and that means only those homes that meet your criteria. We will also help you understand the real estate market, so you will understand the resale value of different types of homes in various communities in Abaco.
Once you have chosen the right home, we will work in your best interest by:
Negotiating with the seller to get you the lowest possible price.
Guiding you through the inspection process. Facilitating the loan process with your bank.
Coordinating with the attorney and bank officer to ensure that all documents are ready for closing.
When everything is in order, we will walk you step-by-step through the closing process. Our job is not finished until we hand you the keys to your new home!
Selling Real Estate In The Bahamas With John Cash Realty As Your Listing Agency:
Selling a home can be a challenging task for you in The Bahamas. How much should you ask? How will you attract potential buyers? Answering these and other difficult questions regarding the sale of your home is much easier with the help of a knowledgeable and trusted real estate broker. For over twenty years, we have successfully navigated many clients through the home-selling process, and we look forward to doing the same for you.
To start, we will personally visit your home and conduct an assessment of its market value. Together, we will determine a selling price that is right for you. We will also suggest possible improvements that will attract potential buyers and increase the value of your home.
Next, we will discuss a marketing plan, which can include Web listings, newspaper advertising, flyers, direct marketing, and open houses. Our goal is to attract a buyer for your home as quickly as possible.
During the negotiation and inspection processes, we will serve as your representative and guide, to keep you informed, protect your interests, and ensure that you receive the best possible price and contract terms.
Finally, we will work with the attorney to see that all documents are properly filed for sale and that you are well-represented at the closing.
LEGAL AND GOVERNMENT INFORMATION
The International Persons Landholding Act 1993 encourages foreigners to purchase a second home in the Bahamas. If a non-Bahamian acquires a single family dwelling or vacant land to be used in the construction of such a dwelling then he no longer need obtain a permit from the Government (Investments Board) prior to purchase. He need only register the acquisition subsequently with The Investments Board.
Note that the foreigner will require an application for, and approved permit, if (1) the property is undeveloped land of five acres in size or larger (2) the property is not a private residence, or is not intended for development as such.
The Act offers further incentives including the provision that a foreigner no longer pays a double rate of stamp duty.
Furthermore, a foreigner owning a home in the Bahamas is now able to obtain an annual home owner resident card (with application and a fee). This card authorizes the entry of the holder and his immediate family provided there are no restriction under the Immigration Act.
Schedule of Fees:
Application for registration – $25.00
Application for permit – $25.00
Certificate of Registration
(A) the value of the property is $50,000 or less – $50.00
(B) the value of the property is over $50,000 but under $101,000 – $75.00
(C) the value of the property is $101,000 and over – $100.00
Home owner resident card – $500.00
Value Added Tax:
Value Added Tax is a transfer tax payable on conveyances, assignments or transfers of all real property at the rates below. It is customary for the Value Added Tax to be shared equally between buyer and seller unless otherwise agreed upon.
2.5% $0.00 – $100,000.00
4% $100,001.00 – $300,000.00
6% $300,001.00 – $500,000.00
8% $500,001.00 – $700,000.00
9% $700,001.00 – $1000,000.00
10% Over $1000,000.00
Value Added Tax On Professional Fees:
Value Added Tax of 10% is payable on real estate commission and legal fees.
Real Property Tax:
OWNER OCCUPIED PROPERTY
Up to the first $250,000. in value – tax exempt
$250,001. to $500,000. – 3/4% of market value*
$500,001. to $5,000,000. – 1% of market value*$5,000,000. Plus – 1/4% *
“Owner-occupied Property” is defined as (real) property occupied by a person who being the owner in fee simple or a mortgager in possession, occupies and resides in such property exclusively as a dwelling house (place) on a permanent or seasonal basis. Owner-occupied property may be rented out on a seasonal basis for periods (in aggregate) not exceeding nine (9) months in a calendar year.
Note: Where the owner of owner-occupied property wishes to rent it out on a seasonal basis (i.e. for not more than nine (9) months in aggregate in a calendar year) he must-
1.) obtain a license from the Hotels Licensing Department (Ministry of Tourism) in Abaco from the Local District Administrator’s Office, by submitting the appropriate signed and completed forms (renewable annually)
2.) collect and pay a hotel guest tax of six per cent (10%) of the total room rate. This tax must be paid by the 15th day of each month and must be accompanied with a monthly return of a Hotel Guest Tax Form.
OTHER IMPROVED PROPERTY
Where the real property does not qualify as owner-occupied property, real property tax is payable as follows:
Up to the first $500,000 – 1% of market value*
Excess over $500,000 – 2% of market value*
Up to the first $7,000.00 in value – $100.00
On the balance (i.e. over $7,000.00 1.5%
*market value is defined as the amount the property would realize if sold in the open market without any encumbrances or restrictions.
Real Estate Commission*
Vacant lot, acreage: 10%
Improved property: 6%
*calculated on the gross sales pricesReal Estate Sales Listings
There several different types of real estate sales listing agreements in the Bahamas:
Open Listings – The property owner signs a listing agreement with any number of Realtors, the Realtor that sells the property is entitled to the commission. The owner may also sell the property her/himself and if so, is not obligated to pay any commission to any of the open listing agencies.
Exclusive Listings – The property owner signs an exclusive listing of the property to one real estate company, there will be a time period defined in the agreement, this entitles the listing agent to the commission regardless of who sells the property. With an exclusive listing the Realtor is now able to co-brokerage the property with other Realtors at an agreed commission split.
The Bahamas Real Estate Association
“The Bahamas Real Estate Association (BREA) is the only association in The Bahamas which unites Real Estate Brokers and their Associates for the purpose of; exerting a combined positive and effective influence on matters affecting their profession; promoting and maintaining the highest standard of conduct in the transaction of the Real Estate profession as expressed in the code of ethics adopted by the Association and to enforce this code among its members”.
Effective January 1, 1996 all persons practicing real estate in The Bahamas are required by law to hold either a Brokers or Salesman’s license and membership within BREA.
If you are considering the services of a Realtor it is in your best interest to ensure that they hold a valid license. BREA offers its membership on going education and training, up to date market information and most importantly a network of Brokers and Associates who work closely with each other and respect a strict code of ethics.
The Purchase Process
Once the terms and conditions of a purchase have been agreed upon between the buyer and the seller your Broker will draw up a Sales Agreement (a written contract) which includes a description of the property and a closing date. At this time a 10% deposit is usually obtained and a title search done.
On the closing date a conveyance is executed and the balance of monies paid including stamp duty, property tax, outstanding bills and the sales commissions. The legal fees incurred during this process usually range from 1.5%-2.5%.
All persons having closed a real property purchase should ensure that their deeds and title are recorded in the Registry of Records in Nassau at a minimal registration fee.
Non-Bahamians should also register their INVESTMENT with the Central Bank of The Bahamas – Exchange Control to insure that upon resale they will be able to remit the net proceeds of the sale outside of the Bahamas in the currency of the original INVESTMENT.
Bahamas INVESTMENT Authority
Office of The Prime Minister
Cecil-Wallace Witfield Centre
P.O. Box CB 10980
TEL: (242) 327-5970-4
FAX: (242) 327-5907
Register General Department
Rodney Bain Building
P.O. Box N-532
FAX: (242) 322-5553
Bahamas Real Estate Association
P.O. Box N-8860
TEL: (242) 325-4942
FAX: (242) 322-4649
Bahamas Financial Services Board
Windermere House East Bay St
P.O. Box SS-5539
TEL: (242) 393-8777
FAX: (242) 393-9021
Central Bank of The Bahamas
P.O. Box N-4868
TEL: (242) 322-2193
Computitle Ltd – Title Research
P.O. Box N-4645
TEL (242) 322-7366