Bahamas Real Estate

Sales Commissions

What are the costs involved in buying or selling property?

A typical sale, which is called a "Gross Sale", assumes that the vendor will be responsible for the payment of:

  1. The real estate agents commission (if an agent is involved). The commission on the sale of residential developed property is 6% of the gross sales price. The commission on the sale of undeveloped property is 10%.
  2. The Government Stamp Duty (Tax on the conveyance of real property). This is a graduated Tax. The total amount of the Tax is calculated as follows:
    • When the value of the consideration is less than $20,000, the rate is 2%
    • When the value of the consideration is equal to or greater than $20,000 and is less than $50,000, the rate is 4%
    • When the value of the consideration is equal to or greater than $50,000 and is less than $100,000, the rate is 6%
    • When the value of the consideration is equal to or greater than $100,000 and is less than $250,000, the rate is 8%
    • When the value of the consideration is equal to or greater than $250,000, the rate is 10%
    This tax is split between the vendor and the purchaser
  3. The vendor's legal fees. The legal fees on a sale or purchase are usually 2 1/2 % of the first $500,000, 2% of the next $500,000, 1% of the next $4,000,000 and 1/2% thereafter.

    The Purchaser will be responsible for:

    1. 1/2 of the Government Stamp Tax as set out above,
    2. The purchaser's legal fees as detailed above. This fee includes the lawyers Opinion on the title to the property.
    3. Recording fees ($3.50 per page) on the conveyance and other closing documents which need to be recorded.
    4. Payment of the permit under the International Persons Landholding Act if applicable.

In the event that the sale is a "Net Sale" the purchaser would be responsible for payment of all of the above-mentioned fees.

Schedule of BREA Commission Rates, "Minimum Rates" Sales Commissions

All Real Estate Commissions in the Bahamas are based on the total gross sales price of property, not on equities or partial payments.

BUSINESS OPPORTUNITIES
10% of total sales price, including inventory. If property is also sold at time of sale of business, use applicable rate for property.

CAR PARKS
10% of total sales price.

DEFERRED SALES COLLECTIONS
On collection of deferred payments, 2 1/2% of the amount collected. When the broker has a mortgage service agreement, this condition need not apply. The minimum charge is $1.00 per collection.

FARMS, GROVES, UNPLOTTED LAND
10% of total sales price. Minimum commission is $100.

IMPROVED PROPERTY
6% of total sales price.

LEASEHOLD
For the selling of leaseholds, the charge shall be 6% of any consideration, paid by the purchaser for the leaseholds plus the regular brokerage commis- sion on the unexpired portion of the lease, calculated as a new lease.

OUT ISLAND SALES
8% of total sales price on improved property. 10% of total sales price on unimproved/vacant property.* 15% is applied in Grand Bahama.