Acquiring Bermuda real estate: experienced, local legal advice is critical

Buying real estate can be a complicated procedure, especially in Bermuda. Different rules apply for Bermudian and non-Bermudian purchasers and for different types of residential property. Also, because Bermuda has no title insurance, it is incumbent upon the purchaser to confirm the property title is in order. The assistance of an experienced local lawyer is essential in navigating the real estate rules and ensuring you will acquire good title to a property.

Bermuda is a small country with a limited supply of housing stock. To preserve the majority of housing and undeveloped residential land for Bermudian ownership, the Bermuda Government puts restrictions on which properties are available for purchase by foreigners.

The majority of non-Bermudians are limited to purchasing in developments linked to hotels or houses or condos at the upper end of the real estate market. Whether or not freehold houses or leasehold condos which are not within a hotel development are available for purchase by foreigners is determined by their “annual rental value” (ARV), which is a valuation ascribed by the Bermuda Government. Under the regulations, last updated in 2016, only houses with an ARV above BM$126,000 and condos with an ARV above BM$25,800 qualify for foreign ownership.

All non-Bermudians require a licence issued by the Bermuda Government before they are granted permission to buy a property. The application, which must relate to a specific property, generally takes between six and eight weeks to approve. The advice of a Bermuda lawyer who is familiar with the law relating to non-Bermudian purchasers and with the licence application process can save much time and ensure the purchase goes smoothly.

With more than 75 years of experience in the Bermuda property market, Conyers can advise on any real estate deal on the island, whether standard or complex, residential or commercial. Our clients range from local home owners to international property developers. We have extensive experience working on large residential, commercial, condominium, hotel and resort property deals in Bermuda.

Our attorneys also have a wealth of experience in all kinds of property financing, including residential and commercial mortgages and project financing. We work with all major banks in Bermuda and act extensively for both lenders and borrowers. And should the need for litigation arise, we can handle all aspects of civil and commercial arbitration and litigation in connection with residential or commercial property.

Conyers Real Estate and Property Law Team

Francesca S. Fox, Director francesca.fox@conyers.com

+1 441 278 7989

Cynthia M. Millett, Counsel cynthia.millett@conyers.com

+1 441 298 7898

Oliver Goodwin, Senior Associate oliver.goodwin@conyers.com

+1 441 278 7996