What to check before you close a Bahamas property deal in 2026

Diligence on a Bahamas asset starts before you sign or deposit. Title rests on 30+ years of deed searches in the Registry of Records. There's no Torrens system here, and a 10% VAT on conveyance hits the deal math from day one.

A Bahamas property deal runs nine to twelve weeks from offer to close. Deed searches in the Registry of Records are the main reason it stretches.

A mid-market deal pulls hundreds of documents into the review process. Title deeds going back decades, surveys, permits and leases all land at once.

The VAT on conveyance is a flat 10% regardless of the deal size. It's negotiated between buyer and seller, but that's not always clear upfront.

Attorney fees run 2.5% of price plus 10% VAT on top of that. The conveyance deed must be recorded within 180 days of signing.

Where Bahamas property deals go wrong

Not every check carries equal weight in a Bahamas deal. The table below ranks them - dealbreakers first, then price-movers.

Clear the dealbreakers before you negotiate the final price. Price-adjusters move the offer once diligence is running.

Standard checks are hygiene - miss them and you inherit the problem. Your lawyer needs to know what to clear and in what order.

The full Bahamas property DD checklist

The table ranked the risks - this is the complete list to work through, grouped by area.

Title and ownership

• Pull the deed search: Search the Registry of Records back thirty-plus years.
• Trace the chain: Confirm an unbroken title chain from each predecessor to the seller.
• Check court judgments: Search the Supreme Court Registry for any judgment liens.
• Look for caveats: Confirm no caveats or lis pendens are registered against the title.
• Verify probate: If title passed through an estate, confirm the grant of probate.

Encumbrances and easements

• List all mortgages: Pull mortgage records from the Registry of Records.
• Search for judgments: Check the Supreme Court and Probate Registry for liens.
• Confirm easements: Verify any rights of way or utility easements in the deeds.
• Check caveats: Confirm no purchaser's caveats are blocking a clean transfer.

Zoning and planning

• Confirm land use: Check Town Planning Board records for the parcel's approved use.
• Pull building permits: Confirm all structures have proper Town Planning approvals.
• Check Family Island rules: Outer islands can have separate land use restrictions.
• Review acquisition notices: Confirm no government compulsory acquisition notices exist.

Environmental and contamination

• Commission a Phase I: Screen the site history for contamination or past industrial use.
• Check BEST Commission permits: Confirm coastal development approvals for waterfront sites.
• Review BEST records: Search for any enforcement notices or violations on the property.
• Budget a Phase II: If Phase I flags anything, soil testing follows. See the guide on environmental due diligence for what that involves.

Leases and tenancies

• Pull all leases: Collect current lease contracts and the rent roll.
• Confirm deposits: Check tenant security deposits and confirm who holds them.
• Note break clauses: Review renewal rights, break options, and rent review terms.
• Get tenant estoppels: For income assets, request estoppel certificates from each tenant.

Building and structural condition

• Commission a survey: Get a structural report from a licensed Bahamas surveyor.
• Confirm the certificate of occupation: Check it was issued and matches current use.
• Verify extensions: Match any additions or renovations to Town Planning approvals.
• Review HOA records: For resort or strata property, read the management reports.

Service charge and operating costs

• Pull HOA accounts: Get two to three years of HOA or service charge accounts.
• Confirm no arrears: HOA arrears in the Bahamas pass to the new owner at closing.
• Review the budget: Check the HOA reserve fund and any planned capital expenditure.
• Read the management docs: Review the property management agreement if one is in place.

Transfer tax and acquisition costs

• Fix the VAT liability: Confirm 10% VAT applies to the full conveyance price.
• Agree the split in writing: Negotiate whether buyer, seller, or both cover the 10%.
• Get the DIR invoice: A VAT invoice from the Department of Inland Revenue is required before executing the conveyance.
• Confirm real property tax: All outstanding property tax must be paid before stamping.

Load each area's docs into its own folder in an Ellty virtual data room. Reviewers find what they need, and you track who opens each file.

Insurance and valuation

• Pull current policies: Review building, contents and liability insurance.
• Confirm hurricane coverage: Bahamas assets need adequate windstorm and hurricane cover.
• Commission an appraisal: Get an independent valuation from a licensed Bahamas appraiser.
• Check rebuild value: Confirm the policy covers the full replacement cost.

Utilities and access

• Confirm BEC/WSC connections: Check Bahamas Electricity Corporation and Water & Sewerage Corporation supply.
• Verify road access: Confirm a registered or deeded access road to the parcel.
• Check metering: Review meters and any shared supply arrangements.
• Test capacity: For commercial use, confirm utility capacity matches the intended use.

Seller and KYC / AML

• Confirm identity: Verify the seller's ID and match it to the title records.
• Check IPLA status: Confirm the seller registered under the International Persons Landholding Act.
• Pull the Companies Registry extract: For a corporate seller, confirm the entity is in good standing.
• Run sanctions checks: Screen the seller against international sanctions lists.

How property DD in the Bahamas works

Step 1: Search the title

Pull a full deed search in the Registry of Records and confirm an unbroken chain back thirty-plus years. Your legal team then cross-checks the Supreme Court and Probate Registry for any liens.

The search covers four registries: deeds, Supreme Court, Probate and Companies. Undisclosed mortgages or judgments show up there, not in the deed search alone.

Step 2: Survey and inspect

Commission a licensed surveyor and check all structures against Town Planning Board approvals. Any extension built without a permit is a price-adjuster at best, a deal-stopper at worst.

Confirm a certificate of occupation was issued for the property and matches current use. For resort or strata assets, read the HOA management reports and reserve fund balance.

Step 3: Review leases and income

Pull all lease contracts and the rent roll, and request tenant estoppels for income-producing assets. Bahamas tenancy law can limit eviction and rent adjustment on residential tenancies.

Test each lease against the actual rent, break clauses and renewal rights before pricing the income. Undisclosed side agreements between seller and tenant are more common than you'd expect.

Step 4: Check the environment

Commission a Phase I environmental screen for any property with past industrial or commercial use. For coastal and beachfront sites, pull BEST Commission permits and check for enforcement notices.

Any coastal permit gap or enforcement notice needs resolving before you can close. A Phase II soil test follows if Phase I flags contamination.

Step 5: Close and register

Execute the conveyance deed and obtain the VAT invoice from the Department of Inland Revenue before signing. Pay the 10% VAT and record the deed in the Registry of Records within 180 days.

Foreign buyers of commercial land or parcels over two acres need IPLA registration before closing. The permit now expires if VAT is not paid within 180 days of the grant.

What makes Bahamas DD different

The Bahamas runs a deeds-based Registry of Records, not a Torrens system. You establish title by searching back thirty-plus years of deed history - there's no state guarantee of title.

The 10% VAT on conveyance is the biggest cost trap for buyers new to Bahamas deals. It applies to the full purchase price regardless of structure. Negotiate the split before signing the Agreement for Sale - not at closing.

Foreign buyers need IPLA registration for commercial land or sites over two acres. The 180-day VAT window is stricter than most M&A deal timelines in the region.

"Good and marketable title to land is determined by searches conducted against the names of predecessors in title and the seller in the Registry of Records." - ParrisWhittaker, Bahamas Property Law Guide 2026

Give each advisor a scoped link in Ellty - the lawyer sees title docs, the surveyor sees building files. Track who opens each document via Ellty's features and you know where questions are coming before they stall the deal.

Timeline and cost in the Bahamas

Title and deed search comes first, running one to two weeks at minimum. Survey, environmental checks and lease review run in parallel over weeks two through six.

Full diligence through to close runs nine to twelve weeks in the Bahamas. Phase II soil work or BEST Commission delays push the timeline out further.

Legal fees run 2.5% of the purchase price plus 10% VAT on that fee. A licensed surveyor and Phase I environmental screen add another one to two percent of price.

The 10% VAT on conveyance dwarfs every other closing cost. Negotiate the split - buyer, seller or shared - in the Agreement for Sale, not at the closing table.