Buying on Harbour Island should feel exciting, not stressful. If you are eyeing a beachfront villa or a tucked‑away cottage, you might be wondering how conveyancing in The Bahamas actually works. You want a clear path from offer to keys, with no surprises on approvals, taxes, or transfers. This guide walks you through the process step by step so you can plan with confidence. Let’s dive in.
What conveyancing means in The Bahamas
Conveyancing is the legal process of transferring property from seller to buyer under Bahamian law. On Harbour Island, records are maintained in national registries, and local practice closely follows procedures used in Nassau. You will work through a formal Agreement for Sale, due diligence, payment of duties and fees, completion, and registration.
The Bahamian dollar is pegged one to one with the US dollar, and USD is commonly accepted in property transactions. Confirm your payment currency and wiring details with your attorney early so you avoid conversion issues.
Who does what on your deal
- You, the buyer: Decide offer terms, select your Bahamian attorney, provide proof of funds, complete due diligence, and fund closing.
- Seller: Negotiates contract terms, provides property information, and clears any encumbrances before completion.
- Real estate agent: Manages offers, coordinates access, and helps align timelines and expectations.
- Bahamian attorneys: Draft and negotiate the Agreement for Sale, run title searches, prepare transfer documents, manage duties and fees, and register the transfer. Only a Bahamian-licensed attorney can register the transfer.
- Banks and escrow/trust: Handle client trust accounts and international wires. Law firms commonly receive and disburse funds through client trust accounts.
The step-by-step process
Pre-offer and offer
Most deals start with a written offer delivered through your agent. Some sellers may allow a short reservation deposit to pause marketing during contract drafting. If you use a reservation, confirm whether it is refundable and under what conditions before sending funds.
Agreement for Sale
The main contract sets price, deposit, due diligence timing, conditions like survey or financing, who pays which costs, and the closing date. Deposits are usually held in a law firm client account or another agreed trust arrangement. Make sure remedies and timelines are clear and realistic for an island transaction.
Retain Bahamian counsel
Engage a Bahamian-licensed attorney as soon as you reach agreement on key terms. Your attorney will advise on the contract, conduct title and registry searches, coordinate surveys if needed, handle transfer and registration, and oversee payment of duties and fees. Local counsel is essential to navigate government processes and the land registries.
Title search and due diligence
Your attorney will investigate the seller’s title, deed history, and any encumbrances such as mortgages, liens, caveats, restrictions, or easements. They will review the Registry of Records or Land Registry to verify ownership and note anything that must be cleared before closing. You should also confirm boundaries, access, utilities, and planning or zoning status. For coastal properties, ask about setbacks, foreshore rights, and whether past works like seawalls had permits.
Regulatory approvals
Many non-Bahamian buyers need an Aliens Landholding Licence to hold freehold property. Requirements depend on the property and the details of your purchase. Processing time and documentation vary, so confirm with your Bahamian attorney early and plan your timeline accordingly. If you expect to renovate or redevelop, you will also need to consider planning, building, and environmental permits.
Financing and mortgages
International buyers often purchase with cash, but local mortgage financing is available. If the seller has a mortgage, it must be discharged at or before completion. If you obtain a Bahamian mortgage, plan for additional registration steps and legal work.
Completion and registration
Once conditions are satisfied, the transfer deed is prepared and executed. Duties and fees are paid as required before or at registration. Your attorney lodges the transfer for recording with the national registry. Possession and keys are handled as agreed in the contract, usually at completion.
Taxes, duties, and fees
Most conveyances attract stamp duty or transfer tax that is administered by the Department of Inland Revenue. The Bahamas operates a VAT regime that may apply to professional services, including legal fees, or certain real estate services. Non-Bahamian buyers who need an Aliens Landholding Licence will pay application fees or related charges.
You should also budget for registration and search fees, legal fees, and potential stamp fees on related documents. Ongoing costs can include annual property tax, insurance, utilities, and community or homeowner fees. Market custom often sees buyers paying stamp duty and registration fees, while sellers cover agent commission, but these allocations are negotiable and should be spelled out in your Agreement for Sale.
Moving funds and AML checks
Funds are commonly wired to a Bahamian law firm’s client trust account for disbursement at completion. Confirm account details directly from your attorney’s official letterhead and lock down the currency to avoid unnecessary conversions.
Expect robust anti-money-laundering and know-your-customer checks from both law firms and banks. You will likely be asked for certified identification, proof of address, bank references, proof of funds, and a brief source-of-funds explanation. Large international wires can trigger extra reviews, so leave buffer time for bank processing and compliance screening.
Timeline and what can delay closing
A prepared cash purchase often completes in 4 to 8 weeks after the Agreement for Sale is accepted. If you require an Aliens Landholding Licence, a mortgage, or if title issues arise, plan for 8 to 16 weeks or more.
Common delays include government approvals, slow AML or proof-of-funds clearance, title defects, survey or boundary questions, seller-side mortgage discharge, and international notarizations or consular requirements. The best move is to start KYC documents and Aliens Landholding Licence inquiries as soon as the offer is accepted.
Harbour Island practical tips
- Coastal due diligence: Verify setbacks, beach access, and any foreshore or seawall permissions for waterfront or near-water properties.
- Utilities and access: Confirm power, water, sewage or septic, internet, and road access. Ask about generators or backup solutions where relevant.
- Community rules: If you plan short-term rentals, review any community restrictions, licensing needs, and potential tax implications.
- Local team: Choose a Bahamian attorney with Harbour Island experience and work with a locally knowledgeable agent for on-island logistics.
Your pre-offer checklist
- Certified passport and a second photo ID
- Proof of address and bank reference
- Certified proof-of-funds and brief source-of-funds summary
- Preferred ownership structure, such as individual, company, or trust (confirm with your advisors)
- Contact details for your home-country attorney or accountant if coordination is needed
- Working budget for stamp duty, VAT on services where applicable, registration, and legal fees
- Target timeline and any critical dates for travel or occupancy
Simple timeline at a glance
Offer → Agreement for Sale → Due Diligence → ALHL and AML → Completion and Stamping → Registration
A straightforward purchase follows these stages. Your attorney will confirm when conditions are satisfied and when funds must be in trust for completion.
How MBR Luxury helps
Buying on Harbour Island often involves cross-border logistics, multiple advisors, and tight timelines. You benefit from a single point of contact who aligns the process, from legal introductions to property management after closing. With a high-touch, concierge approach, you get clear steps, realistic timing, and a team that keeps you informed.
Ready to move from browsing to buying? Schedule a private consultation with My Bahamas Realtor Limited to outline your Harbour Island conveyancing timeline, required documents, and next steps with a local attorney referral.
FAQs
Can a non-Bahamian buy property on Harbour Island?
- Yes, non-Bahamians commonly purchase freehold property, and many will need an Aliens Landholding Licence; your Bahamian attorney will confirm requirements and timing.
What documents should I prepare before making an offer?
- Prepare certified ID, proof of address, bank references, certified proof of funds, a brief source-of-funds summary, and your preferred ownership structure.
How long does Harbour Island conveyancing usually take?
- A ready cash deal can complete in 4 to 8 weeks; transactions that involve approvals, financing, or title issues often take 8 to 16 weeks or more.
Who holds my deposit and closing funds in The Bahamas?
- Deposits and purchase funds are commonly held in a Bahamian law firm’s client trust account and disbursed at completion per the Agreement for Sale.
Do I need title insurance in The Bahamas?
- Your attorney will conduct full title searches; title insurance may be available from international providers and can add protection against undiscovered defects.
When do I get the keys and possession?
- Possession and keys are controlled by the Agreement for Sale and are typically delivered at completion unless otherwise agreed.
Are inspections and surveys normal on Harbour Island deals?
- Yes, contracts commonly include inspection and survey conditions with defined timelines so you can confirm boundaries, access, and property condition.
Can I finance the purchase from abroad?
- Yes, buyers can finance locally or abroad; expect extra coordination for mortgage registration and lender requirements, so involve your attorney early.
