THE BAHAMAS Law and Practice Contributed by: Alistair Chisnall and Erica Paine, Graham Thompson
be acknowledged, observed and performed by a tenant, as well as any property-specific town planning or zoning restrictions. 6.13 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. 6.14 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 Investments 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 immi - gration approvals and other regulatory permits or approvals that may be necessary in order to operate a commercial enterprise or undertaking on the leased commercial premises. 6.15 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 bank - rupt 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 commencement 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 bank - rupt’s trade and the necessary wearing apparel and bedding of the bankrupt, their spouse and children. 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obligations It is standard in The Bahamas for a landlord to require a security deposit to be paid at the out - set of a lease (usually equivalent to one month’s rent), and for the first and last months’ rent to be paid in advance. The lease agreement would provide that the security deposit may be forfeit - ed in the event of default or damage. In addition, under the laws of The Bahamas, a landlord may distrain against the tenant’s goods, chattels and effects to recover arrears of rent. 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 land - lord, are common in standard lease agreements. In the absence of such provisions and the land - lord’s consent, the tenant has no security or right of occupation under Bahamian law. A tenant in continued occupation would be deemed to occupy the leased real estate with the consent of the landlord on a periodic tenancy under the same conditions as those of the expired lease (insofar as applicable to a periodic tenancy).
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