A legally binding contract between buyer and seller setting out the terms of a Bahamas property transaction, signed after offer acceptance and before closing.

The process of paying off a mortgage loan through regular scheduled payments covering both principal and interest over a set loan term.

A permit allowing a non-Bahamian to reside in the Bahamas on an annual basis, renewable each year. Distinct from Economic Permanent Residency.

A formal assessment of a property's market value conducted by a licensed appraiser, commonly required by lenders before approving a Bahamas mortgage.

A licensed professional who provides a certified assessment of a property's market value. Distinct from a broker letter of opinion prepared by a real estate broker.

Multi-unit residential buildings in which individual units are rented or owned separately. Common investment property type in Nassau generating rental income.

A property sale where the seller makes no representations about condition and the buyer accepts the property in its current state, with no obligation on the seller to make repairs.

The transfer of a buyer's rights and obligations under an Agreement for Sale to a third party before closing, subject to seller consent.

A property that returns to active listing status after a previous Agreement for Sale was terminated, typically due to buyer default or failed conditions.

An offer submitted on a property already under contract, intended to take effect automatically if the primary contract falls through without the property returning to open market.

The government body responsible for approving and facilitating foreign investment in the Bahamas, including real estate purchases requiring Investment Board registration.

High-end residential and investment property in the Bahamas, typically priced above $1,000,000 USD, encompassing beachfront estates, marina homes, resort condominiums, and private island properties.

A licensed individual representing buyers or sellers under the supervision of a licensed broker. All agents must hold a current BREA licence and operate under a registered brokerage.

A licensed individual authorised to operate an independent real estate brokerage in the Bahamas, holding a higher qualification than an agent and directly accountable to BREA.

A BREA-registered business through which real estate transactions are conducted in the Bahamas, operated by a licensed broker. Pitt Property Group is a licensed Bahamas real estate brokerage.

The true economic ownership of a property, which may differ from the legal title holder — for example where a property is held through a company or trust structure.

Physical markers placed on the ground by a licensed surveyor indicating the legal boundaries of a parcel as described in the survey report, confirming no encroachments from neighbouring parcels.

The Bahamas Real Estate Association — the professional body that licences and regulates all real estate brokers and agents in the Bahamas. All practising agents must hold a current BREA licence.

Short-term financing used to bridge the gap between purchasing a new property and selling an existing one, or between construction completion and permanent mortgage financing.

A written assessment of a property's estimated market value prepared by a licensed broker based on comparable sales and market knowledge. Less formal than a certified appraisal but widely used in the Bahamas market. Contact Sheldon Pitt for a Broker Letter of Opinion →

A government-issued authorisation required before any construction, renovation, or structural alteration can commence on a property in the Bahamas. Issued by the Department of Physical Planning.

The simultaneous sale of multiple properties or units to a single buyer, often at a negotiated discount to market value in exchange for volume and certainty of transaction.

A property purchased with the primary intention of generating rental income rather than owner-occupation. Subject to rental licensing requirements and investment property real property tax rates in the Bahamas.

The increase in a property's market value over time. A primary driver of investment returns in the Bahamas real estate market, particularly in Nassau communities and beachfront locations.

The Bahamas imposes no capital gains tax on the sale of real property. The profit realised on selling a Bahamian property is not subject to Bahamian taxation, though US citizens remain subject to US capital gains tax obligations.

A government-issued document confirming that a newly constructed or significantly renovated building has been inspected and meets all applicable building codes and is safe for occupation.

The chronological history of ownership of a property from the original grant to the current owner, established through a title search of the Public Registry.

The final stage of a real estate transaction at which legal title transfers from seller to buyer, all funds are disbursed, and the conveyance is executed and recorded at the Public Registry.

Costs payable beyond the purchase price to complete a transaction. VAT on the conveyance is the primary cost — 10% flat for foreign buyers, often split between buyer and seller. Real estate commission is paid by the seller, not the buyer. Buyer costs include legal fees at approximately 2.5% plus VAT, survey, and recording fees.

A document prepared by the attorneys at closing itemising all funds received and disbursed — purchase price, deposits, VAT, legal fees, commission, and net proceeds to seller.

An arrangement between two BREA-licensed brokerages to share commission on a transaction where one brokerage represents the seller and another represents the buyer.

An asset pledged as security for a loan. In real estate, the property itself typically serves as collateral for a mortgage, giving the lender the right to foreclose if the borrower defaults.

A land classification assigned by the Town Planning Department designating a parcel for commercial use — retail, office, hospitality, or mixed commercial. Residential use generally not permitted without a variance.

Recent sales of similar properties used to establish the fair market value of a property being priced or appraised. The primary basis for broker letters of opinion and formal appraisals in the Bahamas.

A residential unit within a multi-unit building where the buyer owns their individual unit plus a proportional share of common areas under a Strata Title ownership structure. Browse Bahamas condos for sale →

Short-term financing used to fund construction of a new building, typically converting to a permanent mortgage upon project completion and Certificate of Occupancy.

A condition written into an Agreement for Sale that must be satisfied before the transaction can proceed to closing — such as financing approval, satisfactory inspection, or title clearance.

A security feature of gated communities and condominium developments whereby entry is restricted to residents and authorised visitors through gates, barriers, or staffed security points.

The legal document that transfers ownership of real property from seller to buyer in the Bahamas. Prepared by the buyer's attorney, executed at closing, and recorded at the Public Registry.

The total acquisition cost of a property including purchase price, closing costs, and capital improvements. Used to calculate investment returns and, for US buyers, capital gains tax obligations on resale.

A response by the seller to a buyer's offer letter proposing different terms, typically a higher price or amended conditions. May go through multiple rounds before terms are agreed.

Private restrictions on the use of a property written into the conveyance or a separate deed of covenant — such as prohibiting certain uses, requiring architectural approval, or mandating HOA membership.

Land owned by the Bahamian government. Crown Land cannot be purchased freehold but may be leased under a Crown Land lease for development purposes subject to government approval.

The total principal and interest payments due on a mortgage or loan over a given period. A key metric for investment property analysis — debt service must be covered by rental income for positive cash flow.

The ratio of borrowed funds to equity invested in a property. Used by lenders to assess risk and by investors to evaluate leverage in a real estate investment.

A formal legal instrument evidencing ownership of real property. In the Bahamas the primary ownership document is the conveyance, though the term deed is also used.

Repairs and upkeep that have been delayed or neglected. Identified during a property inspection and used to negotiate price reductions or repair credits before closing.

Zoning regulations that restrict the number of residential units or the floor area ratio permitted on a given parcel of land in the Bahamas, administered by the Department of Physical Planning.

The Bahamian government department responsible for land use planning, zoning administration, subdivision approvals, building permit reviews, and development control. All development applications must be submitted here.

A sum paid by the buyer upon signing the Agreement for Sale — typically 10% of the purchase price — held in escrow by the seller's attorney pending closing.

Land improved with infrastructure or on which a structure has been built. Real estate commission on developed land in the Bahamas is 6% plus VAT, lower than the 10% rate for undeveloped land.

A formal contract between a developer and a landowner, investor, or government body setting out the terms, obligations, and timelines for a development project in the Bahamas.

Government authorisation required for major development projects in the Bahamas, issued by the Department of Physical Planning following review of plans, environmental impact, and compliance with zoning regulations.

A property being sold under financial pressure — typically below market value — due to mortgage default, foreclosure, estate sale, or urgent seller circumstances. Can represent significant acquisition opportunities.

The process of investigating a property before completing a purchase — including title search, survey, zoning verification, building permit history, utility status, inspection, and outstanding property tax review.

A residential building comprising two separate self-contained units, each with its own entrance. A common investment property type in Nassau generating rental income from both units.

A legal right allowing a third party to use a portion of a property for a specific purpose — such as access, utilities, or drainage — without owning it. Identified during due diligence via title search.

The formal designation for Bahamas permanent residency obtained through a minimum $1,000,000 USD investment in qualifying real estate. Grants lifetime residency rights subject to maintaining the investment for 10 years.

A property's total potential rental income minus vacancy and collection losses, representing the realistic annual income used in investment analysis.

Any claim, lien, mortgage, or restriction on a property that may affect the buyer's ability to take clear title. Identified during the title search as part of due diligence.

A bathroom directly connected to and accessible only from a specific bedroom, providing private bathroom facilities for that bedroom. A standard feature in luxury Bahamas properties.

The difference between a property's current market value and the outstanding balance of any mortgages or loans secured against it. Equity grows as the property appreciates and the mortgage is paid down.

The holding of funds — typically the buyer's deposit — by a neutral third party, usually the seller's attorney, pending satisfaction of the conditions of the Agreement for Sale and completion of closing.

Registration of a foreign currency investment with the Central Bank of the Bahamas, protecting the buyer's right to repatriate sale proceeds in foreign currency on resale. Handled by the buyer's attorney at closing.

A listing agreement granting a single brokerage the exclusive right to market and sell a property for a defined period. The most common listing structure used by Pitt Property Group.

An investor's planned method for realising their return on a real estate investment — through resale, refinancing, 1031 exchange (for US buyers), or holding for long-term income.

The price a property would sell for between a willing buyer and willing seller, both with reasonable knowledge of the facts and neither under compulsion to transact.

The most complete form of property ownership in the Bahamas — absolute ownership of land and structures, with the right to sell, lease, or bequeath the property freely without time limit.

A contingency written into an Agreement for Sale making the transaction conditional on the buyer securing mortgage financing on specified terms within a defined period.

A VAT exemption available to Bahamian citizens purchasing their first home below $500,000. Qualifying buyers pay no VAT on the conveyance, reducing closing costs significantly.

A mortgage with an interest rate that remains constant for the full loan term, providing predictable monthly payments regardless of market rate changes.

A designated area with elevated risk of flooding, identified on government flood maps. Relevant to due diligence on beachfront, waterfront, and low-lying properties across the Bahamas.

Required under the IPLA for foreign nationals purchasing undeveloped land larger than two acres or property with commercial intent, applied for through the Bahamas Investment Authority.

A residential building comprising four separate self-contained units on one lot. A popular multi-family investment property type in Nassau generating income from four tenants simultaneously.

An ownership structure where multiple buyers share ownership of a single property, each holding a deeded fraction of the title and associated usage rights — common in resort and luxury developments.

Ownership of property on a permanent, indefinite basis — equivalent to Fee Simple. The most common form of ownership in the Bahamas for both residents and foreign buyers.

A residential development with controlled entry, perimeter security, and shared amenities managed collectively. Nassau examples include Venetian West, Sandyport, Palm Cay, Albany, and Lyford Cay. Typically carry HOA fees.

The total amount before any deductions. Gross sale price is the full purchase price on which VAT, commission, and legal fees are calculated. Gross rental yield is annual rent divided by purchase price before expenses.

Annual rental income expressed as a percentage of the purchase price, before deducting operating expenses. Used to compare investment returns across different properties and markets.

A long-term lease of land only, on which the tenant constructs and owns buildings. The land reverts to the landowner at lease expiry. Common in resort and commercial developments in the Bahamas.

A preliminary document outlining key terms agreed between buyer and seller before a formal Agreement for Sale is drafted. Commonly used in commercial and development transactions in the Bahamas.

The legally permissible, physically possible, financially feasible, and maximally productive use of a property — a key concept in property valuation and development planning.

An organisation formed by residents of a planned community or condominium to manage shared amenities, enforce rules, and collect maintenance fees. Monthly or annual HOA fees are payable in addition to real property tax.

Ongoing expenses incurred while owning a property — including real property tax, insurance, HOA fees, maintenance, and any mortgage interest. Must be factored into investment return calculations.

An annually renewable residence card for non-Bahamians who own property below the $1,000,000 EPR threshold. Allows stays of up to one year. Costs $250 per year to renew.

The regulatory framework under the Hotels Encouragement Act governing hotel and short-term rental operations in the Bahamas. Properties offering short-term accommodation may require a hotel licence.

A property generating rental income — residential, commercial, or hospitality. Valued using income-based methods such as net operating income and capitalisation rate analysis.

The basic physical systems serving a property or development — roads, water supply, electricity, sewage, and drainage. Infrastructure quality varies significantly across Bahamas islands and must be assessed during due diligence.

Capital expenditure required to install or upgrade basic services — roads, utilities, drainage — on a development site. A major cost factor in Out Island and greenfield development projects.

A physical examination of a property's condition before closing. Not legally mandated in the Bahamas but strongly recommended. May cover structural integrity, electrical, plumbing, roofing, and hurricane preparedness.

The risk that rising interest rates will increase mortgage costs or reduce property values. Relevant to buyers using variable rate financing or planning to refinance a Bahamas property.

The legislation governing foreign ownership of real property in the Bahamas. Foreign nationals may purchase residential property freely but must register commercial or rental-intended purchases with the BIA.

Required under the IPLA for foreign nationals purchasing property with commercial or rental intent. Registration is handled by the buyer's attorney at closing through the Bahamas Investment Authority.

A property purchased to generate income or capital appreciation rather than for owner-occupation. Subject to investment property real property tax rates in the Bahamas with no exemption threshold.

A form of co-ownership where two or more parties hold equal, undivided shares of a property with right of survivorship — meaning a deceased owner's share passes automatically to surviving co-owners.

A partnership between two or more parties to develop or invest in a specific real estate project, sharing costs, risks, and returns under a formal agreement for the duration of the project.

Anti-money laundering compliance requirements applying to all Bahamas real estate transactions. Buyers must provide passport copies, proof of address, and source of funds documentation to their attorney and broker.

Purchasing undeveloped land with the intention of holding it for future development or resale at a higher value as surrounding infrastructure and demand improve.

The official classification assigned to a parcel by the Department of Physical Planning determining its permitted uses — residential, commercial, industrial, conservation, or mixed use.

Ownership of property for a fixed term under a lease agreement, as distinct from freehold ownership. Crown Land is typically held on a leasehold basis in the Bahamas.

Attorney fees for conducting the conveyancing transaction — typically approximately 2.5% of the purchase price plus VAT. Both buyer and seller typically engage separate attorneys in the Bahamas.

A legal claim against a property, often securing an unpaid debt. Identified during the title search. A property must be free of liens before clear title can be conveyed to a buyer.

The ratio of a mortgage loan to the appraised value of the property, expressed as a percentage. Bahamian lenders typically require LTV ratios of 70% or lower for foreign buyers.

A rental agreement for a fixed period exceeding one month — commonly 6 or 12 months in the Bahamas. Long-term rentals are exempt from hotel licensing requirements applicable to short-term rentals.

Premium residential and investment property distinguished by exceptional location, finishes, amenities, and price. In the Bahamas context, typically refers to properties priced above $1,000,000 USD.

The purchase of a designated boat slip in a marina, either as fee simple freehold ownership or leasehold. Key due diligence factors include depth, power, water, hurricane hole rating, and liveaboard rules.

The estimated amount a property would sell for in a competitive market between a willing buyer and seller, based on comparable sales, condition, and current market conditions.

A development combining residential, commercial, retail, and/or hospitality uses within a single project or building. Increasingly common in Nassau and emerging Bahamas island markets.

The shared database used by BREA-licensed agents in the Bahamas to list and search available properties. Not all Bahamas properties are listed on the MLS — many premium properties are marketed exclusively.

The recurring monthly payment made by a tenant to a landlord under a lease agreement in the Bahamas. Typically paid in advance on or before the first of each month.

A loan secured against real property in the Bahamas. Bahamian banks offer mortgages to local buyers. Foreign buyers typically require larger deposits and may face higher interest rates or limited access to local mortgage financing.

A property type comprising two or more residential units on a single lot — duplex, triplex, fourplex, or apartment building. Multi family properties generate rental income and are taxed at investment property real property tax rates.

The amount remaining after deductions. Net proceeds to seller equals sale price minus commission, legal fees, VAT, and liens. Net rental yield equals rental income minus all operating expenses.

A property's effective gross income minus all operating expenses excluding debt service. The primary metric used to value income-producing properties in the Bahamas using capitalisation rate analysis.

The Bahamian national insurance system. NIB contributions are deducted from employee salaries — relevant to buyers employing domestic staff at a Bahamian property.

A buyer who does not reside permanently in the Bahamas. Non-resident buyers are subject to the same purchase process as foreign buyers and must comply with IPLA and Exchange Control requirements.

A property available for sale that is not publicly listed on the MLS or other marketing channels. Many premium Bahamas properties trade off-market through direct broker relationships.

A written document submitted by a prospective buyer to a seller setting out the proposed purchase price and key terms. Not legally binding but forms the basis for negotiation before a formal Agreement for Sale.

A listing arrangement where the seller retains the right to list with multiple brokerages simultaneously, paying commission only to the brokerage that produces the buyer.

Ongoing costs of owning and operating an investment property — real property tax, insurance, property management fees, maintenance, HOA fees, utilities, and vacancy allowance.

A formal legal opinion prepared by the buyer's attorney confirming clear, marketable title and identifying any encumbrances. Essential for every Bahamas property purchase.

A contract granting a buyer the exclusive right to purchase a property at a specified price within a defined period, in exchange for an option fee. Used in development transactions and pre-sale scenarios.

A property used as the primary residence of its owner. Benefits from real property tax exemption on the first $300,000 of market value and a maximum annual tax cap of $60,000. Bahamian owners on the Family Islands are fully exempt from real property tax.

A property status indicating an Agreement for Sale has been signed and conditions are being satisfied, but closing has not yet occurred. The property is no longer available to other buyers.

Economic Permanent Residency is available to foreign nationals investing a minimum $1,000,000 USD in qualifying Bahamian real estate. Grants lifetime residency rights subject to maintaining the investment for 10 years. Full guide →

Required under the IPLA for foreign nationals purchasing undeveloped land over two acres or property with commercial intent. Applied for through the Bahamas Investment Authority.

The acquisition of multiple properties as part of a diversified real estate investment strategy, spreading risk across different asset types, islands, or price points within the Bahamas market.

A half bathroom containing only a toilet and sink, without a shower or bathtub. Common in Bahamas residential properties as a guest bathroom on the ground floor.

A property purchased before or during construction, typically at a discount to projected completion value. Buyers assume construction risk in exchange for lower entry price and potential appreciation on completion.

The sale of a property or development unit before it is completed or publicly launched, typically offered to a select group of buyers at favourable pricing in exchange for early commitment.

The professional management of a property on behalf of an owner — covering tenant sourcing, rent collection, maintenance, and compliance. Essential for absentee owners of rental properties in the Bahamas.

An assessment of a property's market value for the purposes of sale, purchase, mortgage, insurance, or investment analysis. May be conducted by an appraiser or through a broker letter of opinion.

The government office where all conveyances, mortgages, and other property instruments are recorded in the Bahamas. Recording at the Public Registry gives public notice of ownership and protects the buyer's title.

The legal term used in Bahamian conveyancing documents to refer to the buyer in a real estate transaction. Used interchangeably with buyer in the Agreement for Sale and conveyance.

A fee paid by the seller — not the buyer — to the broker upon completion of a transaction. The standard rate in the Bahamas is 6% plus VAT on improved property and 10% plus VAT on vacant or undeveloped land. Buyers do not pay real estate commission.

An annual tax on real property in the Bahamas. Owner-occupied properties are exempt on the first $300,000 of value, capped at $60,000 annually. Bahamian owners of vacant land pay no real property tax. Bahamian owners of Family Island property (Bimini, Exuma, Eleuthera, Cat Island, Andros, etc.) are fully exempt. Foreign buyers pay 1% on vacant land and investment property with no threshold.

A real estate agent who is a member of the National Association of Realtors (NAR). In the Bahamas, agents may hold both a BREA licence and NAR membership. Realtor is a trademarked NAR designation.

The government department maintaining the Public Registry of property ownership records in the Bahamas. All conveyances and mortgages are recorded here to protect ownership rights.

A legally binding contract between landlord and tenant setting out the terms of a property rental in the Bahamas — rent, duration, deposit, and obligations of each party.

Revenue generated by leasing a property to tenants. Rental income in the Bahamas is not subject to Bahamian income tax but may be subject to income tax in the owner's home country.

The estimated cost to rebuild or replace a property with one of similar size, quality, and function at current construction prices. Used in insurance valuations and as a check on market value assessments.

The total financial return on a real estate investment expressed as a percentage of the total capital invested, combining rental yield, capital appreciation, and tax benefits over the holding period.

The formal process of changing the land use designation of a parcel from one zoning classification to another, requiring application to and approval by the Department of Physical Planning.

A sum paid by a tenant at the start of a tenancy — typically one month's rent — held by the landlord as security against damage or unpaid rent. Refundable at the end of the tenancy subject to the property's condition.

The party transferring ownership of a property in a real estate transaction. Referred to as the Vendor in formal legal documents. The seller typically pays real estate commission and their own legal fees in the Bahamas.

The legal process of dividing a single parcel of land into two or more separate lots, each with its own title. Requires approval from the Department of Physical Planning and compliance with zoning regulations.

A rental agreement for a period of less than one month. Short-term rentals in the Bahamas may be subject to hotel licensing requirements under the Hotels Encouragement Act.

A property rented to guests for short stays — typically days or weeks — via platforms such as Airbnb or VRBO. May require a hotel licence in the Bahamas depending on the frequency and nature of rentals.

A standalone residential dwelling on its own lot, designed for occupation by one household. The most common property type in Nassau residential communities including Venetian West, Sandyport, and Old Fort Bay.

A property status indicating the transaction has closed, title has transferred to the buyer, and the conveyance has been recorded at the Public Registry. The property is no longer available.

A property designed for a specific use that limits its appeal to a narrow market — such as a marina, hotel, church, or school. Requires specialist valuation and marketing expertise.

The total floor area of a property measured in square feet. Used as a primary metric for comparing property sizes and calculating price per square foot in the Bahamas market.

VAT on conveyances replaced stamp duty in the Bahamas in 2015. References to stamp duty in older Bahamas documents or contracts refer to what is now VAT on the conveyance.

A freestanding structure not physically connected to any other building. Standalone units offer greater privacy and typically command a premium over attached or semi-detached properties.

The ownership structure used for condominiums and multi-unit developments in the Bahamas. Each unit owner holds title to their individual unit plus a proportional share of common areas.

Government authorisation required before a parcel of land can be divided into multiple lots for sale or development in the Bahamas. Issued by the Department of Physical Planning following review of subdivision plans.

A formal measurement of a property's boundaries conducted by a licensed surveyor, resulting in a survey report and placement of boundary markers on the ground. Typically required during due diligence before closing.

Government approval of a survey plan submitted in connection with a subdivision, severance, or development application — confirming the survey accurately reflects approved boundaries and lot configurations.

A formal document prepared by a licensed surveyor describing the boundaries, dimensions, area, and physical characteristics of a parcel. Typically required by the buyer's attorney as part of due diligence.

A licensed professional who measures and maps the boundaries of a parcel of land, prepares the survey report, and places boundary markers on the ground. All Bahamas surveys must be conducted by a licensed surveyor.

A formal written contract between a landlord and tenant governing a long-term rental in the Bahamas — setting out rent, duration, deposit terms, permitted use, and obligations of both parties.

Legal ownership of real property. In the Bahamas, title is conveyed by a conveyance document registered at the Public Registry. A clear title free of encumbrances is essential before any purchase completes.

Insurance protecting a buyer against losses arising from title defects not identified during the title search — such as undisclosed heirs, forgery, or errors in public records. Not universally used in the Bahamas but available through attorney structuring.

A review of the Public Registry conducted by the buyer's attorney to confirm the seller's ownership, identify encumbrances, and ensure the buyer will receive clear title at closing.

A multi-storey residential unit attached to one or more adjacent units, typically with its own entrance and small private outdoor space. Common in Nassau gated communities and as investment properties.

In the Bahamas context, the VAT on conveyances serves the same function as transfer tax in other jurisdictions. There is no separate transfer tax — VAT on the conveyance is the primary transaction tax.

A residential building comprising three separate self-contained units on one lot. A common multi-family investment type in Nassau generating rental income from three units simultaneously.

A fully furnished and equipped property ready for immediate occupation or rental without requiring any additional work or investment from the buyer.

A property with an accepted offer and signed Agreement for Sale in place but not yet closed. No longer available to other buyers while under contract, subject to the terms of the agreement.

A property for which a buyer has submitted an offer being considered by the seller but for which no Agreement for Sale has yet been signed. May still accept competing offers at this stage.

Land in its natural state without structures or infrastructure improvements. Also referred to as vacant land. Real estate commission on undeveloped land in the Bahamas is 10% of the gross sale price plus VAT.

A legal right granted to a utility company to install and maintain infrastructure — power lines, water pipes, sewage — across a private property. Identified during title search and due diligence.

The systems delivering essential services to a property — electricity, water supply, sewage disposal, and telecommunications. Infrastructure availability and reliability varies significantly across Bahamas islands.

The real estate commission rate applicable to purchases of undeveloped land in the Bahamas — 10% of the gross sale price plus VAT, higher than the 6% rate for improved property.

A furnished property rented to visitors on a short-term basis for holiday accommodation. Vacation rentals in the Bahamas may require a hotel licence and are increasingly regulated under tourism frameworks.

A formal written document produced by a certified appraiser setting out the assessed market value of a property, the methodology used, and the comparable sales evidence supporting the conclusion.

A formal invoice issued by a VAT-registered business itemising the VAT component of fees charged in connection with a real estate transaction. Buyers should retain all VAT invoices as part of their transaction records.

Value Added Tax payable on the purchase of real property in the Bahamas. Flat 10% for foreign buyers. Graduated 2.5%–10% for Bahamian buyers. Calculated on the gross sale price and payable at closing.

The legal term used in Bahamian conveyancing documents to refer to the seller in a real estate transaction. Used in the Agreement for Sale and conveyance alongside the term seller.

A property with direct access to or frontage on a body of water — ocean, canal, harbour, or lake. Waterfront properties in the Bahamas command significant premiums and attract both lifestyle and investment buyers.

The liquid funds required to cover day-to-day development costs — materials, labour, professional fees, and holding costs — during a construction or development project before sales revenue is received.

The annual return on a real estate investment expressed as a percentage of the purchase price. Gross yield uses rental income before expenses. Net yield deducts all operating costs. A key metric for comparing Bahamas investment properties.

The classification of land by the Department of Physical Planning determining permitted uses — residential, commercial, industrial, agricultural, or mixed use. Zoning must be verified during due diligence on every Bahamas purchase.