Closing.
Closing on a real estate sale or purchase is different in the Bahamas vs. USA or Canada.
It does not happen in one day, there is often no final walk-through inspection / contingencies. Any defects or repairs required would have been identified in the early negotiation process and/or appraisal process. These would have been handled through that Sale Price reduction, in the Sales Agreement and typically the buyer handles the repairs once the sale is completed.
The lawyers act as escrow agents and therefore handle all the aspects from Purchase & Sale Contract, Title Search, Regulatory approvals / exemptions – if any, Title Requisitions, Documentation, Completion, Conveyance, Registration and Keys & Funds exchange.
As either or both parties are often called into their respective lawyer’s offices at various times or by courier / email, sign the related documents – the closing process may take several days or weeks. This would include discharging of any outstanding leins, taxes and outgoing expenses in order to provide the purchaser with a clean title of ownership.
The attorneys will furnish each parties involved with a settlement statement, which summarizes and details the financial transactions enacted in the process. If you are obtaining financing, you will have to sign all pertinent documentation required by the lending institution.
Funds for the closing of the sale is paid into the escrow account of your respective attorney who provides the Escrow service. If you are bringing funds to the transaction, you can elect to either have the funds wired electronically into your attorney’s escrow account or pay by a certified bank check in the amount specified on the settlement statement. The seller should arrange to have all property keys and any other important information for you at the closing so that you may receive these items once the funds have been released to the sellers attorney.
Once the attorney’s have received the clear title and funds in escrow, they will make the exchange and release the Funds and Title + Keys, if any, to each respective party. You should request an estimated closing time from your attorney and be prepared to follow-up to ensure a prompt closing.
Some helpful Guidelines / Timelines
Property visit & Preparation of Offer Letter – 1-2 days or Longer
Negotiations of Offer Letter – 1 to 3 days or Longer
Lawyer prepares Sales Agreement – 7 to 14 days or Longer (Up to months) Check in.
Signing of Sales Agreement – 14 days to 30 days or Longer
Bank Financing, Appraisal, Inspections – Once agreement signed + 30, 60 or 90 days
Legal / Title Search / Requisitions / Funding / Closing – Once financed, + 30, 60 or 90 days