The Small Print

When Purchasing Your Dream Home…

Denis de Frias provides a guide to help you buy your new home.

1. Get Your Finances in Order

• Preapproval: A mortgage charges the title of the property until repayment of the loan is complete, at which time the charge is released. It’s always best to start by making an appointment with a local lender to seek pre-approval for financing. Confirm with your lender how long preapproval lasts for. • Stamp Duty: The Government Stamp Duty charged on the transfer deed should be considered. Your attorney will prepare a mortgage deed; there are stamp duty and legal costs associated with this document, too, and these costs are the sole responsibility of the purchaser/borrower. 2. Find a Property Attorney

While purchasing a property can be a relatively straightforward transaction, each deal presents its own unique circumstances that require the guidance of professionals trained in the intricacies of buying/selling Bermuda property. 3. Background Checks

Know what you are actually purchasing. • Property Condition: Bermuda is known for its proven construction methods; thus, buyers do not customarily request structural surveys. However, if the site is sloped, there is a possibility of termite infestation or outdated electrical and/or plumbing installations. • Boundaries: Ensure that the seller restakes the property boundaries to ensure there are no encroachments or other discrepancies. • Tenants: When purchasing a property that contains one or more units, verify: • If tenants are currently living in the property • Rent registered with the Rent

Commissioner’s Office • There have been no illegal increases in rent and the history of tenant payments. • Planning Search: A planning search is conducted to ensure that no property development has been made without planning permission. This usually takes four weeks to be processed. • Title Search: Your attorney will conduct a title search and will also search the Land Title Registrar’s Office and Supreme Court for any outstanding mortgages and judgments against the property, the seller, and predecessors in title. Land Taxes: These are payable twice a year in equal instalments. The history of payments should be verified. 4. Sign on the Dotted Line:

Once you have made an offer on the property, and it has been accepted, your attorney will review the sale and purchaseagreement and make any necessary amendments before you sign it.

Denis de Frias is a director of MJM Limited and is responsible for the firm’s property practice. Mr de Frias has more than 20 years of experience in a broad range of property transactions, including condominium development, complex financing structures and residential and commercial real estate sales and purchases.

Property

Our property team is dedicated to providing pragmatic and responsive advice across a broad spectrum of residential and commercial property acquisitions and sales (freehold and leasehold), mortgages and other property related transactions.

We provide a full range of services to our property clients in the following areas:

• Purchase and sale of Bermuda property • Purchase and sale of hotel properties • Condominium development • Conveyancing for estate planning • General property advice • Mortgages and secured lending • Planning and development • Purchase and sale of local businesses involving commercial property • Residential and commercial conveyancing and leases For further information please contact: Denis de Frias Stephanie Matthews Nathan Samuels Hil de Frias

MJM LIMITED THISTLE HOUSE 4 BURNABY STREET HAMILTON HM 11 P.O. BOX HM 1564 HAMILTON HM FX BERMUDA TEL 441.292.1345 WEB www.mjm.bm BLOG www.bermudalawblog.bm in linkedin.com/company/mjmlimited