BAHAMAS Law and Practice Contributed by: Alistair Chisnall and Erica Paine, Graham Thompson
6.10 Payment of Utilities and Telecommunications
6.15 Specific Regulations Certain business leases or letting agreements by which a non-Bahamian acquires an interest in real estate in The Bahamas and which are over 21 years in duration are required to be registered with the Invest - ments Board, and a Certificate of Registration must be obtained in accordance with the International Persons Landholding Act, 1993. A non-Bahamian tenant would also require a business licence issued by the Busi - ness Licence Department and all other immigration approvals and other regulatory permits or approvals that may be necessary in order to operate a com - mercial enterprise or undertaking on the leased com - mercial premises. 6.16 Effect of the Tenant’s Insolvency It is a common feature of standard commercial leases that a landlord has the right to terminate the lease in the event of the insolvency of the tenant. In the case of bankruptcy, a landlord or other person to whom any rent is due from a bankrupt tenant may seize the goods or effects of the bankrupt tenant for the rent due to them at any time, either before or after the commencement of the bankruptcy. However, if such distress for rent is levied after the commence - ment of the bankruptcy, the landlord is only able to recover one year’s rent accrued prior to the date of the order of adjudication. The landlord may apply under the bankruptcy for the balance due, for which distraint may not have been available. A landlord is not permitted to seize goods or effects of a bankrupt tenant held in trust for any other person, nor to seize the tools of the bankrupt’s trade and the necessary wearing apparel and bedding of the bankrupt, their spouse and children. 6.17 Right to Occupy After Termination or Expiry of a Lease Hold-over provisions that speak to the continued occupation of a tenant beyond the expiration of the agreed term, with the consent of the landlord, are com - mon in standard lease agreements. In the absence of such provisions and the landlord’s consent, the tenant has no security or right of occupation under Baha - mian law. A tenant in continued occupation would be deemed to occupy the leased real estate with the con - sent of the landlord on a periodic tenancy under the
In general, utility charges would be paid by the land - lord or their property manager, and a tenant would reimburse the monthly charges incurred. Where a leased area is not separately metered from other areas occupied or used by the landlord or other tenants, it is common for a tenant to contract to pay a fixed pre-agreed monthly amount or their pro rata share of common area maintenance charges. That said, it is also often possible for a tenant to set up a tenant ser - vice account in its own name and pay utility charges directly to the service provider. 6.11 Payment of Property Taxes Commercial leases typically provide for the tenant to be responsible for real property taxes. 6.12 Insurance Issues While subject to contract and the agreement of the parties, it is generally the industry standard that the landlord is responsible for insuring the building and common parts and that the tenant must insure the leased area. The risks that are typically insured against include fire, earthquake, hurricane, flood and civil commotion. Business interruption insurance is very uncommon in The Bahamas, and it is exceedingly rare for a tenant to hold such a policy. 6.13 Restrictions on the Use of Real Estate It is common for a standard form of commercial lease to include various restrictions governing the use of the leased real estate. In addition, restrictive covenants and conditions to which the real estate is subject would usually be acknowledged, observed and per - formed by a tenant, as well as any property-specific town planning or zoning restrictions. 6.14 Tenant’s Ability to Alter and Improve Real Estate Unless the tenant is contractually obliged to complete certain works or improvements, it is industry standard for a tenant to be prohibited from making alterations or improvements to the leased real estate without the prior approval of the landlord.
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