Thinking about buying a condo in Nassau or Paradise Island? Strata ownership can be a smart, low‑maintenance way to enjoy life in New Providence, but it comes with its own set of rules, fees, and documents to review. You want the lifestyle and the investment to align, without surprises after closing. In this guide, you will learn how strata title works in The Bahamas, what to ask for before you make an offer, and the practical steps to complete a smooth purchase in New Providence. Let’s dive in.
Strata title basics in The Bahamas
How ownership works
Strata title separates a building into private units and shared common property. You own your individual unit and a proportional interest in the common areas like land, roofs, lobbies, pools, and elevators. An owners’ corporation manages the common property and enforces bylaws on behalf of all owners.
Who manages what
The owners’ corporation, sometimes called a condominium or strata corporation, sets budgets, collects fees, and arranges maintenance. Some developments hire a professional management company. The management contract spells out services, fees, and how the agreement can be renewed or ended.
Core documents you should see
Ask for the registered strata or condominium plan that defines unit boundaries and common areas. Review current bylaws and any registered amendments, especially around noise, pets, rentals, and renovations. Request budgets, financial statements, and reserve fund reports so you know how the building is funded and maintained.
New Providence legal and title checks
Confirm title and plan registration
A full title search is essential. Your conveyancing lawyer should confirm the seller’s title to the unit, check for encumbrances or caveats, and verify that the strata plan and any amendments are properly registered. Clarify whether the project uses registered freehold title with a strata plan or another form such as leasehold.
Bylaws and special resolutions
Check that bylaws and any changes were registered according to local procedures. Ask for minutes showing special resolutions so you can understand recent decisions that may affect fees, rules, or major works.
Permits and occupancy
Confirm that the building holds the required permits, completion and occupancy certificates, and approvals from municipal or national authorities. This protects you from compliance issues after closing.
Foreign buyer considerations
If you are a non‑Bahamian buyer, ask your lawyer about any ownership documentation, approvals, or residency considerations that may apply based on the property type and your plans. Rules can vary, so get advice at the start of your search.
Taxes and closing costs
Property purchases in The Bahamas involve government duties, stamp taxes, registration fees, and legal or conveyancing fees. The precise amounts depend on the purchase price and your residency status. Have your lawyer confirm exact figures before you write an offer.
Financial health of the development
Fees and the reserve fund
Request the current schedule of strata fees and a history of fee increases. Review the reserve, also called the sinking fund, to see how major repairs are funded. If reserves are too low, large projects can trigger special levies that raise your carrying costs.
Budgets, arrears, and deficits
Study recent financial statements and the year‑to‑date budget. Look for operating deficits, overdue owner contributions, and reliance on developer funding. High arrears and recurring shortfalls can signal future fee pressure or deferred maintenance.
Insurance and what you must cover
Confirm the building’s insurance coverage for structure and common areas, and request proof that premiums are current. Ask what you need to insure separately, such as contents, unit improvements, and personal liability. Lenders often require evidence of satisfactory building insurance.
Management, use rules, and rentals
Professional management and enforcement
Clarify who manages the building and obtain the management agreement. Understand how bylaws are enforced, how fines or disputes are handled, and whether there is any ongoing litigation that involves the owners’ corporation.
Renovations, pets, and rentals
Check rules that affect your day‑to‑day use and investment plans. Ask about renovation approvals and guidelines. If you plan to rent the unit, verify the building’s rules on subletting or short‑term rentals and any local licensing or registration requirements.
Developer control period
In newer or phased projects, the developer may retain control of the owners’ corporation or hold unsold units for a period. This can affect voting, bylaws, and major decisions until control passes to owners. Request timelines for handover and any warranties or defect processes.
Due diligence checklist before you offer
Documents to request
- Registered strata or condominium plan showing your unit, common property, and exclusive‑use areas
- Current certificate of title or equivalent registration for the unit
- Bylaws, rules, and any registered amendments
- Minutes of owners’ meetings for the last 1 to 3 years and any special resolutions
- Management agreement and service contracts for security, landscaping, cleaning, and other services
- Recent financial statements, operating budgets, and reserve fund statements
- Building and liability insurance certificates and proof of paid premiums
- Strata fee schedule, history of fee increases, and an arrears report
- Records of past and planned capital works, major repairs, defects, and any special levies
- Building permits, completion and occupancy certificates, and any developer warranty documents
Questions to ask sellers or management
- Who holds developer control now, and when does it end?
- Are there any pending special assessments, large capital projects, or changes to bylaws?
- Are there active litigation matters or insurance claims involving the building?
- Are any units owned by the developer or a lender that could affect voting or resale activity?
- What are the rules on subletting, short‑term rentals, and owner renovations?
- Are there known defects, pest issues, flooding, or drainage problems?
Questions for your team of professionals
- Conveyancing lawyer: Can you confirm clear title, registered bylaws, and exact closing costs, including stamp duties and fees?
- Building inspector or engineer: What is the condition of structure, roof, waterproofing, drainage, and mechanical systems? Any signs of past water intrusion or deferred maintenance?
- Mortgage lender or broker: Do you lend on units in this development, and what conditions apply to strata properties?
- Managing agent or owners’ corporation: Can you provide financial statements, insurance certificates, and minutes? How are common expenses allocated?
- Tax or financial adviser: What are the tax and reporting implications if you plan to rent the unit?
Your path to closing in New Providence
Before you write an offer
Gather the documents in the checklist and review them with your lawyer. Arrange an independent building inspection, especially for older buildings or those with past issues. If you plan to finance, secure pre‑approval and confirm your lender will accept this development.
Offer and contract terms
Make your offer conditional on a clear title search, review of bylaws, a satisfactory financial review of the owners’ corporation, and a satisfactory building inspection. Use a locally qualified real estate lawyer to draft or approve terms and to hold deposits in trust. This gives you time to verify all essentials without pressure.
Closing, registration, and move‑in
Your conveyancer will complete searches, prepare transfer documents, pay applicable duties and taxes, and register the transfer. Confirm that outstanding strata fees and levies are addressed at closing and that apportionments are handled in the settlement statement. After closing, register as the new owner with the managing agent, obtain keys and access credentials, review move‑in and renovation rules, and set up your individual insurance.
Red flags and common risks
Underfunded reserves and special levies
Low reserves can turn routine upkeep into expensive special assessments. Review reserve levels and the history of fee increases before you commit.
Developer control and alignment
When the developer controls voting and bylaws, decisions may not fully align with long‑term owner interests. Confirm the control timeline and the status of any handover or warranty obligations.
Poor management and arrears
High arrears reduce funds available for maintenance and can lead to deferred repairs. Check arrears levels and the corporation’s collection policies.
Construction defects and insurance gaps
Structural or waterproofing defects can be costly. Ask for records of past claims, defect reports, and current insurance coverage, and verify that premiums are paid.
Litigation and unresolved disputes
Ongoing disputes with contractors, developers, or neighbors can delay sales and add costs. Ask for disclosure of any active or threatened litigation.
Practical takeaways for New Providence buyers
- Always review the strata plan, bylaws, financials, and insurance certificates before you make an offer.
- Verify title status and registrations with a Bahamian conveyancing lawyer and condition your offer on clear title and satisfactory financial review.
- Pay close attention to the reserve fund and any history of special levies or fee increases.
- Confirm the developer’s control status, any pending capital works, and how they will be funded.
- If you intend to rent, confirm the building’s rental rules and any local licensing or registration requirements.
- Budget for duties, fees, and closing costs in addition to your purchase price.
- Build a local team that includes a licensed agent, conveyancing lawyer, building assessor, and lender familiar with New Providence strata projects.
When you have the right information, a strata purchase in New Providence can be a smooth path to island living or a thoughtful investment. If you want hands‑on help coordinating due diligence, introductions to local legal and financing partners, or property management after closing, our team is here to assist. Schedule a private consultation with Unknown Company.
FAQs
What is strata title in The Bahamas?
- Strata title gives you ownership of your individual unit and a proportional share of the building’s common property, managed by an owners’ corporation with bylaws and fees.
Which documents should I review before buying a condo in New Providence?
- Request the registered strata plan, title documents, bylaws and amendments, minutes, financials and reserve statements, insurance certificates, permits, and records of capital works.
How do strata fees and reserve funds affect my costs?
- Fees cover day‑to‑day upkeep, while reserves fund major repairs; low reserves or frequent deficits can lead to special levies and higher long‑term costs.
What legal checks are essential for a Bahamian strata purchase?
- A full title search, confirmation of registered bylaws and strata plan, verification of permits and occupancy certificates, and clarity on any encumbrances or caveats.
Can foreign buyers purchase strata units in New Providence?
- Yes, but you should confirm any documentation, approvals, or residency considerations with a local conveyancing lawyer, since requirements can vary.
What insurance do I need for a condo in The Bahamas?
- The building usually carries structural and common‑area coverage; you typically insure your contents, improvements, and personal liability. Ask for proof of paid premiums.
What should I include as conditions in my offer on a condo?
- Include satisfactory title search, bylaw review, financial review of the owners’ corporation, and an acceptable building inspection to protect your position.
