How to Sell Your Bermuda Home the Right Way
Selling a home in Bermuda involves more than listing a property and waiting for buyers. From understanding local regulations to navigating negotiations, homeowners must take careful steps to ensure a smooth and efficient sale.
Combining legal guidance with market insight helps sellers protect their interests and achieve the best possible outcome.
Partnering With Professionals
Having both a property attorney and a licensed real estate agent on board is key to a smooth sale. The attorney reviews the sale and purchase agreement, making sure the terms are clear and the seller’s interests are protected—reducing the chance of disputes later.
Meanwhile, the real estate agent guides pricing, marketing, and negotiations to position the property effectively. Their services typically include professional photography, widespread promotion across multiple platforms, scheduling showings, and managing buyer interactions. Commission is usually 5% of the sale price, paid at closing. Working with both legal and market experts streamlines the process and addresses potential challenges, especially during price discussions.
Understanding Bermuda’s Residential Market
Instagram | sinclair_realty_bermuda | The primary buyers in Bermuda’s housing market are Bermudians, BOT citizens, and PRC holders.
Bermuda’s housing market is primarily open to Bermudians, British Overseas Territories citizens, and Permanent Resident Certificate holders. A limited portion of properties is available to international buyers or companies. These properties often include homes with an annual rental value (ARV) of at least $126,000 or condominiums with an ARV of at least $25,800.
International buyers typically require longer closing timelines, around three months, while companies may need up to six months. In contrast, local buyers often complete the transaction within approximately 30 days after signing the sale and purchase agreement.
Preparing Your Home for Sale
Before listing, gather all relevant documents, including:
1. Property deeds, which may be held by a bank, attorney, or a secure location. Avoid keeping them at home due to risk of loss or damage.
2. Copies of property schedules, boundary plans for freeholds, or headleases for condominiums.
3. Past three years of condo accounts for review, addressing any irregularities upfront.
Having home boundaries surveyed and staked is often expected by buyers. Identifying encroachments or unregulated docks early can prevent delays during closing. Transparency about these issues, especially in a market dominated by cash buyers, helps maintain buyer trust.
Sale and Purchase Agreement
Freepik | The sale and purchase agreement outlines all terms, and the buyer’s attorney conducts legal checks before the deal closes.
Once a buyer is identified, a sale and purchase agreement is prepared. This agreement includes:
– The purchase price
– A 10% deposit held by the seller’s attorney or agent, released at closing
– Inventory of included items, such as major appliances
– Conditions precedent, like financing or license approvals for international buyers
– Closing date
Between signing and closing, the buyer’s attorney reviews the seller’s title, checks for outstanding permits or judgments, and confirms mortgage payoff. The seller receives a statement showing apportionments for land tax and other deductions before finalizing the transfer.
Closing the Sale
At closing, the seller’s attorney receives proceeds, including the deposit, minus applicable costs. Typical deductions include sales commission, survey fees, legal expenses, and any contributions to buyer fees or stamp duty. Keys are handed over to the buyer once the transaction is complete. Land tax bills remain in the seller’s name until registration is finalized, but the Tax Commissioner usually redirects future bills to the new owner.
Selling a Bermuda home requires attention to legal details, market knowledge, and careful preparation. Working with seasoned professionals, staying on top of local requirements, and double-checking paperwork give sellers the best chance of a smooth sale. When every step is planned carefully and handled with transparency, the process flows more easily—from the first listing to the final closing.