BAHAMAS Law and Practice Contributed by: Alistair Chisnall and Erica Paine, Graham Thompson
6.22 Termination by a Third Party The Bahamas government or any other third party cannot terminate a lease agreement between private parties, except when exercising the governmental rights and powers noted in 2.9 Condemnation, Expro- priation or Compulsory Purchase , which must be exercised in accordance with statute law and (in the case of compulsory acquisition) with suitable com - pensation being paid to a landowner or occupier. 6.23 Remedies/Damages for Breach In the event of the tenant’s breach, the landlord will typically seek to terminate the lease by forfeiture, and will seek to recover arrears of rent and/or damages for breach(es) of covenant out of the deposit held by the landlord. It is standard for the landlord to require payment of a security deposit in cash at the outset of a lease (usually equivalent to one month’s rent). In the event that the amount of the deposit is insuf - ficient to cover arrears of rent/damages, then there are no restrictions on the landlord pursuing an action to recover the balance due. There is no commonly accepted market standard of contract, so parties are free to agree terms as they see fit, with the format and complexity of the contract often being driven by the sophistication of the par - ties, the type of project and the third-party consultants required by the customer (eg, independent certifying architects, quantity surveyors or project managers). However, most larger construction contracts will typi - cally follow a US style (such as that of the American Institute of Architects), a UK style (such as that of the joint contracts tribunal), a combination of the two, or even the contractor’s (or developer’s) own standard terms. 7.2 Assigning Responsibility for the Design and Construction of a Project 7. Construction 7.1 Common Structures Used to Price Construction Projects In The Bahamas there is an absence of legislation specific to construction contract or project pricing, construction project management or construction
same conditions as those of the expired lease (insofar as applicable to a periodic tenancy). 6.18 Right to Assign a Leasehold Interest While the parties can freely negotiate their desired terms between themselves, it is unusual for a tenant to be permitted to assign its leasehold interest in the lease or to sublet all or a portion of the leased prem - ises. Where that is permitted, it is usually subject to the express and prior written consent of the landlord. 6.19 Right to Terminate a Lease Under a typical lease agreement, the parties would usually enter into covenants to be observed and per - formed by a landlord or tenant respectively; failure to observe or perform such covenant may entitle a party to terminate a lease. A lease may also typically be terminated by either the landlord or the tenant if the leased real estate is substantially destroyed or dam- aged and not repaired within a specified period. 6.20 Registration Requirements As noted in 6.15 Specific Regulations , a non-Baha- mian tenant may have an obligation to register long- term leases in excess of 21 years with the Investments Board under the International Persons Landholding Act, 1993. Except for such long-term leases, there is no requirement to obtain government approval to lease real estate, nor to record the lease in the Reg - istry of Records. Parties predominantly elect not to record leases (whether commercial or residential), unless they represent or comprise part of a very sig - nificant investment and are long term in nature. 6.21 Forced Eviction A standard lease would have provisions entitling the landlord to evict the tenant in certain instances. A tenant that alleges wrongful distress or eviction may commence an action to seek relief and defend their interest in the real estate and to the right of posses - sion. The tenant may often also seek an interlocutory injunction to restrain the landlord’s action in the inter - im, until the matter can be brought to trial. Given the steps involved in such applications and that a hearing is dependent on the court’s calendar, the timeline of an eviction process can vary considerably.
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