BERMUDA Law and Practice Contributed by: E. Scott Swainson, Andrew Morgan and Erik Gotfredsen, Wakefield Quin Limited
ment adversely; in particular, there are very few new condominiums. Blockchain, etc Whilst the Bermuda government is keen to keep up with technological advances such as digitalisation and fin - tech, their emergence is not anticipated to have a sig - nificant effect over the next 12 months. The 2024 budget speech highlighted future AI-powered services, with the Department of Immigration being the first targeted department to benefit from this developing technology. Property transactions are generally conducted in an old school manner, involving wet ink signatures and overseas notaries. The level of AML monitoring for real estate is very high. Bermuda’s electronic Land Title Registry Office (LTRO) became operational in August 2018 but does not yet capture all real estate, as only certain transactions trigger compulsory first registration. Other transac - tions may be registered in the Office of the Registrar- General, which is also now maintained by the LTRO, but are recorded by reference to the parties’ names (akin to a land charges register in England and Wales). 1.3 Proposals for Reform Bermuda’s planning and immigration regulations are constantly developing. The Premier and Immigration Minister wish to welcome many thousands of new residents in order to counteract an ageing population and low birth rate, and are actively fostering schemes that encourage international investment. Due to Bermuda’s limited size and scope to expand by land reclamation, city living in higher residential apartment blocks will be promoted. 2. Sale and Purchase 2.1 Categories of Property Rights Classes of Title Title to real property can be held freehold (fee simple) or leasehold. Fee simple fractional ownership exists in some of the high-end resort properties favoured by second home -
owners. Timeshares are technically available but are no longer relevant. Condominium Living Apartments and town homes are generally sold by way of 999-year leases and include shares in the condo - minium corporation that owns the freehold reversion. Whilst freehold condominiums can be created, they are rare outside of government-sponsored schemes only available to Bermudians. 2.2 Laws Applicable to Transfer of Title Operative Law The transfer of unregistered land is governed by the Conveyancing Act 1983, while the transfer of regis - tered land is governed by the Land Title Registration Act 2011. Governmental approvals are required for the acquisi - tion of real property by non-Bermudians and compa - nies, under the Bermuda Immigration and Protection Act 1956 and the Companies Act 1981 respectively. Restrictions on Land Holding Companies require landholding powers in order to acquire land (other than for business purposes on leases not exceeding 50 years). Such consents are typically granted where there is a valid business case and/or other benefit to Bermuda. Whilst such rules typically apply to all user types, international invest - ment is welcomed in the tourism sector and licences are expedited. 2.3 Effecting Lawful and Proper Transfer of Title Requirements The transfer of legal title in land must be effected by deed in writing, executed by the parties to be charged. Deeds signed overseas must be notarised. Registration Compulsory first registration is currently triggered by: • a conveyance or lease for valuable consideration; • a conveyance or lease pursuant to court order; or • a first legal mortgage.
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