BERMUDA Law and Practice Contributed by: E Scott Swainson, Katrina Dickson and Erik Gotfredsen, Wakefield Quin Limited
Governmental approvals are required for the acquisition of real property by non-Bermudians and companies, under the Bermuda Immigration and Protection Act 1954 and the Companies Act 1981 respectively. Restrictions on Land Holding Companies require landholding powers in order to acquire land (other than for business purpos - es on leases not exceeding 50 years). Such con - sents 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 investment is welcomed in the tour - ism 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 trigged by: • a conveyance or lease for valuable considera - tion; • a conveyance or lease pursuant to court order; or • a first legal mortgage. Once registered, any dealings are recorded by forms created by the LTRO. Title Warranty Whilst there is no title insurance in Bermuda, title is effectively guaranteed by the LTRO upon completion of any registration with an “absolute” title designation. “provisional” title designation
denotes potential issues that are not warranted, such as missing deeds or a possessory title not perfected by court declaration (such titles can be upgraded over time). Backlogs at the LTRO have increased the need for court declarations for both adverse possession and prescriptive easements. Attorney Liability Applications to register conveyances on sale by the LTRO are submitted with an opinion signed by the purchaser’s lawyer that the title is good and marketable. The Bermuda Bar Council rec - ommends a minimum scale of charges that var - ies with price, to reflect the law firm’s liability under such an opinion. All law firms are regu - lated and those that hold client funds must have indemnity insurance, based on the number of attorneys engaged. Electronic Transactions Whilst the Land Title Registration Act 2011 con - templates electronic conveyancing of registered land, these provisions are not yet in force. Deeds generally require wet ink signatures and notaris - ing if signed overseas. 2.4 Real Estate Due Diligence Buyer Beware Caveat emptor applies. Buyers will typically car - ry out a structural survey via a registered sur - veyor. If there are red flags, additional reports are sought (eg, signs of termite damage). Risk Risk passes at actual completion and it is rare for warranties to survive completion, unless expressly stated. Statutory covenants for further assurance apply but vary according to the capacity of the seller
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