FREQUENTLY
ASKED QUESTIONS
Making vacation home
ownership a breeze
Pa g e 1
Bermudiana Beach Frequently Asked Questions
I.
ABOUT BERMUDA
A.
Country Status
1.
Is Bermuda a sovereign state? 7
B.
Getting here
C.
Things to Do
1.
What Annual events are there in Bermuda? 8
2.
What does the Capital, Hamilton offer? 9
3.
What “sporty” activities are available in Bermuda? 10
4.
When do I need to be in Bermuda to go whale watching? 11
D.
Safe Environment
1.
How safe is Bermuda? 11
II.
ABOUT THE RESORT
A.
Hotel Condominium
1.
What is a Hotel Condominium?
13
B.
Amenities
1.
What amenities are there on site at Bermudiana Beach? 14
2.
Where are the nearest shops & amenities to Bermudiana Beach? 14
C.
Location
1.
How long does it take to get to and from the airport? 15
2.
How close is Bermudiana Beach to Hamilton? 15
3.
Are the cliffs at Bermudiana Beach stable ? 15
Contents
Pa g e 2
Bermudiana Beach Frequently Asked Questions
III.
ABOUT THE CONDOS
A.
Interior Design
1.
Can the interior design be customized?
18
B.
Construction
1.
How are the residential buildings and hotel constructed?
18
2.
Can you combine residences?
18
3.
Will the 1-bedrooms have windows on the Western and Eastern Walls? 18
4.
Which condos will be fully-accessible?
IV.
BUYING A CONDO
A.
Financial Considerations
1.
What are the list prices of the condos at Bermudiana
2
1
Beach?
2.
Do I buy in Bermuda dollars or US dollars?
21
3.
Can I get a mortgage to help me buy?
21
4.
What property can a Non-Bermudian buy in Bermuda?
2
1
5.
What property can a Bermudian and holder of a Permanent Resident
Certificate (“PRC”) buy in Bermuda?
22
6.
Other Property buying Costs
22
Contents
Pa g e 3
18
Bermudiana Beach Frequently Asked Questions
B.
Legal Matters
1.
How do I own the property?
24
2.
What is a 999-leasehold interest?
24
3.
Will I need a local attorney?
25
4.
Do I need an Overseas Buyers (Acquisition) License to buy a
condominium in Bermuda?
25
5.
What happens if my Acquisition License isn’t granted?
25
6.
Who pays the legal fees on the transaction?
25
7.
Can buyers use Cox Hallett Wilkinson Limited or do they have
to have their own attorney?
25
8.
Will owners be able to delay closing until the hotel opens?
26
9.
What happens if the hotel development fails and the hotel doesn’t
open?
26
10.
Will I have to go through an anti-money laundering (AML) process? 26
Contents
Pa g e 4
Bermudiana Beach Frequently Asked Questions
V.
OWNING A CONDO
A.
Usage Restrictions
1.
Can I occupy year round or are there owner usage restrictions?
28
B.
Home Owners Association & Operational Management
1.
How does co-ownership between condo owners and resort owners
work?
2.
How will the HomeOwners' association be structured and
who will be running it?
29
C.
Residency and Working in Bermuda
1.
If we buy a condo will we have automatic residency in Bermuda?
30
2.
If we buy a condo can we work in Bermuda 30
Contents
Pa g e 5
D. How are costs shared?
1.
What costs are condo owners responsible for?
30
2.
What costs are the Management Company responsible for?
30
29
Bermudiana Beach Frequently Asked Questions
6
I
ABOUT
BERMUDA
Pa g e 6
Bermudiana Beach Frequently Asked Questions
A.
Country Status
Is Bermuda a sovereign state?
a.
Bermuda is an island country with its own distinct national identity, but not a
sovereign state.
b.
A sovereign state is one neither dependent on nor subjected in any way to any
o
ther
pow
er or sta
t
e
or
coun
try
.
Bermuda
is a
British
Overseas
T
errit
ory
and
as
such
has
a
gr
ea
t
deal
o
f
aut
onomy
.
c.
It is the smallest in size but economically the most advanced, prosperous
and populated per square mile as well as the oldest of 14 British Overseas
Territories.
d.
Bermuda has its own written constitution, but operates under the British
Legal System, and has a Governor appointed by the Crown. The Governor is
responsible for matters of defence and to a large extent foreign affairs. We also
have a Parliament that operates under the Westminster System.
e.
Bermuda
’
s
H
ead
o
f
S
ta
t
e
is King Charles III
.
B.
Getting There
a.
You will find a complete list of direct flights to Bermuda
here
.
Pa g e 7
Bermudiana Beach Frequently Asked Questions
C.
Things to Do
1. What Annual events are there in Bermuda?
a.
January
–
Bermuda Restaurants Weeks, Bermuda Marathon Weekend, Bermuda
Festival of the Performing Arts
b.
March
–
Bermuda International Film Festival, Grey Goose World Par 3
Championship, Bermuda Triple Challenge, Good Friday Kitefest, Moth World
Championships
c.
April
–
Bermuda Agriculture Exhibition, The Town Crier Re-enactment in St.
Geor
ge
’
s
P
epper
c
orn
Cer
emony
,
MS
Amlin
W
orld
T
ria
thlon
Bermuda,
H
amilt
on
’
s
Summertime Harbor Nights
d.
M
a
y
–
H
amilt
on
’
s
Summertime
H
arbor
Nigh
ts,
An
tigua
Bermuda
R
ac
e,
Bermuda Day, Argo Gold Cup
e.
June
–
H
amilt
on
’
s
Summertime
H
arbor
Nigh
ts,
Annapolis
Bermuda
Oc
ean
Race, Bermuda Heroes Weekend, Newport Bermuda Race/Marion Bermuda
Race (alternate years).
f.
Jul
y
–
H
amilt
on
’
s
Summertime
H
arbor
Nigh
ts,
Bermuda
T
riple
Cr
own
Billfish
Championship
g.
A
ugust
–
H
amilt
on
’
s
Summertime
H
arbor
Nigh
ts,
Cup
M
a
t
ch
W
eek
end,
N
on-
Mariner’s Boat Raft Up
h.
Sep
t
ember
–
H
amilt
on
’
s
Summertime
H
arbor
Nigh
ts,
Sand
Sculp
tur
e
Competition
i.
October
–
City Food Festival
j.
November
–
World Rugby Classic, Viper North American Race
k.
December
–
Goodwill Golf Tournament
l.
See links below for more information:
1.
https://www.gotobermuda.com/
2.
https://www.bermuda.com/things-to-do/events-calendar
3.
h
ttp:
//
no
thingt
odoinbermuda.c
om/bermuda-ev
ents-calendar
.
Pa g e 8
Bermudiana Beach Frequently Asked Questions
2.
What does the Capital, Hamilton offer?
a.
The City of Hamilton
is where most of the island’s glittering retail shops, great
restaurants and many other commercial establishments like banks & insurance
companies are located. And as expectedly, this is the busiest
place in the island.
b.
Many great restaurants and shops can be found in Hamilton. The central bus
terminal and the main ferry terminal are also located here that connect to most
parts of the island.
c.
And there is no better place for nightlife in Bermuda than the City of Hamilton.
This is the location of the summer Harbor Nights festival, with Gombey Dancers
and Beat the Retreat Ceremony, and Happy Hour Friday evenings at the
Hamilton Princess Hotel is a great way to kick off the weekend where many
Bermudians go to enjoy a drink together and watch the sunset over the harbor
while listening to the live band.
d.
Several restaurants on Front Street have balconies with wonderful views of the
Hamilton harbor which looks spectacular at night when the lights at the banks
are all illuminated. While you dine or take a drink, you can
w
a
t
ch
the
boa
ts
on
the harbor
and
the
bus
y
str
ee
t
righ
t
belo
w
.
e.
Of course, there are plenty more eateries, cafes, bars, pubs, and restaurants at
several other places in Hamilton including at Reid Street, Washington Mall etc.
f.
There are two movie theatres in the city which play all the latest Hollywood
movies.
g.
At the west end of Front Street, you will find the Visitor’s Information Centre
located next to the Hamilton ferry terminal. Here you can collect useful pocket
maps and brochures for free showing you the main tourist attractions in Hamilton
and rest of Bermuda.
h.
Here are the top places to visit in the City of Hamilton:
1)
City
H
all
and
Arts
Cen
t
er
,
Bermuda
Ca
thedr
al,
S
t.
Ther
esa
’
s
Ca
thedr
al,
Bermuda Underwater Exploration Institute (BUEI), Albuoy’s Point Park, Victoria
Park, Queen Elizabeth Park, Waterfront Square, Bermuda House of Assembly,
Bermuda Cabinet House, The Cenotaph, War Memorial, Perot Post Office,
Bermuda National Library, Bermuda Historical Society Museum, Barr’s Bay and
Park, Birdcage, Fort Hamilton.
Pa g e 9
Bermudiana Beach Frequently Asked Questions
3.
What “sporty” activities are available in Bermuda?
a.
Swimming and Snorkeling: Can be done during Summer
b.
Swimming with the Dolphins: Can be done in the Summer
c.
Sunset & Sightseeing Cruises, Sailing and Boat Rentals: Can be available
year-round. (weather permitting).
d.
Kayaking, Paddle boarding, Water skiing, Jet skiing, Parasailing, Flyboarding: Can
be done year-round.
e.
Windsurfing
and
Kitesurfing:
Can
be
done
b
etw
een
Dec
ember
and
M
a
y
.
f.
Golf, Tennis, Mini Golf, Archery, Fencing: Available year-round, weather
permitting.
g.
Bowling, Squash, Spa: Available year-round.
h.
Fishing: Reef and Shore fishing can be done year-round. Deep sea fishing can be
done
be
tw
een
M
a
y
t
o
October
.
i.
Hiking & Cycling: Can be done year-round and the well-known Bermuda Railway
T
r
ail
r
emains
ac
c
essible.
H
orseback
R
iding:
Can
be
done
thr
oughout
the
y
ear
.
However, beach rides are allowed only during low season (November to April,
but trail rides are always open).
j.
Scuba Diving: Can be done year-round. However, in winter (November to April)
while the water visibility is much higher, the average water temperature remains
in the 60
o
s and will need a wetsuit.
k.
Helmet Diving: Can be done during Summer
l.
Whale Watching: Can be done in March and April. This is the migration season of
humpback whales.
m.
Bird Watching: Different kinds of birds can be spotted from season to season.
However, the rare Cahow (which is the national bird of Bermuda) can be seen
be
tw
een
Dec
ember
and
F
ebruary
.
n.
Glow Worm Cruises: Available between May to November, once a month (2-3
nights after full moon).
o.
Cliff Jumping & Rock Climbing (Solo): Can be done during Summer.
p.
Cave exploring and swimming: All year round (cave waters will be very cold)
q.
Fort Touring (Solo): Year-round.
r.
See this link for more information.
Pa g e 10
Bermudiana Beach Frequently Asked Questions
4.
When do I need to be in Bermuda to go whale watching?
a.
You get the best opportunity of watching whales in Bermuda during the
springtime between March and April. This is when the humpback whales migrate
from the Caribbean water zone to the north Atlantic feeding zone. The whales
usually have a regular pattern of behavior and a migration route.
D.
Safe Environment
How safe is Bermuda?
a.
Bermuda
’
s
crime
r
a
t
e
has
historicall
y
been
r
ela
tiv
el
y
lo
w
,
with
pe
tty
burglaries
the most prevalent crime. Almost all of Bermuda is, therefore, relatively secure.
Pa g e 11
II
ABOUT THE
RESORT
Bermudiana Beach Frequently Asked Questions
A.
Hotel Condominium
1. What is a Hotel Condominium?
a.
The hotel condominium business model comprises vacation home apartments
designed and developed to be marketable as leisure real estate for outright
purchase by individual owners, while providing effective hotel room inventory
when owners, themselves, are not occupying their vacation homes. Successful
condominium resorts incorporate traditional hotel central facilities for the
enjoyment of condominium owners and hotel guests who are paying a nightly rate
for accommodation. Typically, these facilities include restaurants, bars, a spa and
gym, meeting space, beach facilities and a well-staffed reception/concierge desk.
b.
As a Bermudiana Beach condominium owner you will benefit from modern,
carefree ocean-front living while generating an income from your condominium
when you are not in Bermuda.
c.
The condos are usually designed to function as one, two or even three-
bedroom hotel suites, with a small kitchen and dining area, but with the potential
for individual en-suite bedrooms to be “locked-off"
–
meaning that these rooms
can be accessed separately and occupied as individual “hotel type” rooms. This
flexible design assists in reaching higher occupancy levels year-round and
higher nightly rates than are typically achieved by conventional apartments,
being marketed as traditional self-catering accommodation. The architectural
and interior design aspects of the apartment layouts must be carefully contrived
to achieve the best end result, whereby the usage requirements of both the
condominium owner and the hotel guest are met to a satisfactory level.
d.
Revenue from the nightly rental business is split between the apartment owner
and
the
ho
t
el
managemen
t
company
.
A
t
Bermudiana
Beach
the
split
is
40%
share of Net Rental Income to the owner and 60% to the hotel management
company.
e.
The operating company then covers the costs of all hotel services out of its 60%
split and retains the balance as profit. The condominium owner must
still pay homeowner association charges.
f.
Owner occupancy is normally restricted to a certain number of days each year
and by season.
g.
At Bermudiana Beach Owners are restricted to 90 days usage each year
with certain seasonal restrictions.
h.
You wholly own the property, which leaves the remainder of the year available
for rental.
Pa g e 13
Bermudiana Beach Frequently Asked Questions
B.
Amenities
1.
What amenities are there on site at Bermudiana Beach?
a.
The resort is being converted in one go. An ocean-view pool and a beach
elevator and steps down to the beach will be constructed, and elevators have
been added to each of the buildings.
b.
An ocean-view pool bar & grill, restaurant, hotel reception, spa, and gym will
be constructed.
c.
Will the pool be heated?
1)
The
pool
will
be
hea
t
ed
t
o
80
o
F
.
This
is a
Hilt
on
standar
d
r
equir
emen
t.
d.
Where can I store my car when I am not on island?
2)
The hotel will make arrangements for overseas owners to store their cars
under cover offsite. A charge will be made for this service.
e.
Where are the nearest shops & amenities to Bermudiana
Beach?
a.
Most shopping is in the City of Hamilton. Alternatively, there is select
shopping in Dockyard at the Western end of the Island and St Georges
located at the eastern end of the island.
b.
See map below for detail.
places of interest
ACTIVITIES:
1. Kayaking along the shoreline
2. Whale watching
3. Cycling & hiking through the Railway Trail
4. Warwick Lanes Bowling Alley
5. Belmont Hills Golf Club
6. South Shore beach and paths
7. Southlands Park
8. Turtle Hill Golf Club
TRANSPORTATION:
1. Smatt’s Cycle Rentals
2. Current Vehicle Mini Car Rentals
3. Elbow Beach Cycle Rentals
4. Belmont Ferry Stop
DINING:
1. Four Ways Inn Restaurant
2. Parakeet Restaurant
3. Cafe Coco Restaurant
4. Blue Bar & Grill
5. LITT Restaurant
6. Island Cuisine Diner
7. Divots at Belmont Hills Golf Club
8. Lido Restaurant
9. Gulf Stream Restaurant
10. Pizza House Heron Bay
11. Wok Express
12.
SIGHT SEEING:
1. Gibb’s Hill Lighthouse
SHOPPING:
1. Haywards Liquor Store
2. Price Right Supermarket
3. Herons Bay Grocery Store
4. Lindo’s Family Foods Grocery Store
20
21
2
3
4
5
6
11
2
3
4
1
3
4
5
6
7
8
9
10
11
12
2
1
1
2
3
4
Gold Coast Express
8
7
Pa g e 14
Bermudiana Beach Frequently Asked Questions
C.
Locations
1.
How long does it take to get to and from the airport?
a. The airport is approximately 10 miles from Bermudiana Beach and will take
about 30 to 40 minutes via taxi to get there. See map below:
2.
How close is Bermudiana Beach to Hamilton?
a. The City of Hamilton is approximately 4 miles from Bermudiana Beach and will
take about 15 minutes via taxi to get there. See Map below:
3.
Are the cliffs at Bermudiana Beach stable?
a.
Report by Mark Rowe, MSc, geologist, June 5, 2015
1)
Mark Rowe has a degree in Geology from Imperial College London
and was Hydrologist to the Bermuda government. He has published
several scientific articles on the geology of Bermuda. In a letter to OBMI
on June 5, 2015 Mark wrote:
2)
“I was part of a group of government officials who inspected the site in 2011
and have revisited it on several occasions since. I concur with the
recommendations of Lohse GeoConsulting Inc, including concrete-buttressing
of the cliff-toe to above the level of the proto-sol. This has
Pa g e 15
Bermudiana Beach Frequently Asked Questions
taken a major source of the potential instability and vulnerability to wave
erosion out of the equation. It is my opinion that if the concrete wall and
its foundations are monitored and maintained in a state of good repair
and vegetation is controlled, that retreat of the cliff-line does not pose a
threat to the integrity of the existing housing structures within a timeframe
that need be of concern to long-term investors. Several well-established
resort properties in Bermuda have been constructed in similar geological
environments with buildings positioned closer to a cliff edge.”
b.
Report by Colin Campbell, OBMI, 23 January 2015
1)
Colin Campbell MIBA is Regional Director at OBMI Architecture, the
architects appointed to carry out the conversion at Bermudiana Beach.
H
er
e
’
s
wha
t
Colin
said
o
f
the
cliff
r
emedia
tion
issue:
(a)
“In 2009 the Bermuda Housing Corporation (BHC) concerned for
the apparent existing conditions of the proposed development site,
required from the developer a geotechnical survey works to be carried
out
t
o
con
firm
the sit
e
’
s
structur
al
stability
.
L
ohse
Geoc
onsulting
Inc,
in
concert with local engineers Onsite Engineering, provided test data and
recommendations in two reports dated 15 October (Preliminary
Comments Grand Atlantic Development, South Shore Road Warwick
Bermuda) and 29th October 2009 (Slope Stability Grand Atlantic
Development, South Shore Road Warwick Bermuda). These reports
confirmed the soil bearing capacity in the area of the development,
recommendations for providing a protective infill wall at the base of
the cliffs, recommended development engineering parameters and
location for residential structures. A subsequent report of 24th
October 2011 confirmed that the developers had in fact followed the
recommendations of the initial reports, and the cliff face was relatively
stable as long as preventive maintenance was addressed from time to
time.”
Pa g e 16
Bermudiana Beach Frequently Asked Questions
18
III
ABOUT THE
CONDOS
Pa g e 17
Bermudiana Beach Frequently Asked Questions
A.
Interior Design
1. Can the interior design be customized?
a. The interior design is pre-determined to comply with Hilton standards. Apart
fr
om
loca
tion
and
property
type
each
condo
’
s
in
t
erior
design
is iden
tical,
so
tha
t
it is easier to market hotel rooms as a collective.
B.
Construction
1.
How are the residential buildings and hotel constructed?
a.
Bermudiana Beach Resort follows the same resilient building practices that
have kept Bermuda safe from storms for over 400 years.
b.
Using International Building Code masonry construction methods, the residences
and hotel facilities are built with concrete foundations and floors and
concrete block walls
.
c.
Roofs are constructed using resilient timber secured with hurricane clips, with
traditional Bermuda profile roof sheathing glued and screwed to the roof
assembly.
d.
Since being built Bermuda has weathered several Atlantic storms and
Bermudiana Beach Resort has performed without incident.
2.
Can you combine residences?
a.
Condominiums cannot be combined as the room types have to be the same
for hotel guests. Combining condominiums would create new room types,
which would be hard to market and would affect occupancy.
3.
Will the 1-bedrooms have windows on the Western and
Eastern Walls?
a. There are 4 end 1-bed Coralitas and these are dual aspect and are located in
Dunscombe (Building D). The 2-bed end-of-building Buttonwoods are also
dual aspect.
Pa g e 18
Bermudiana Beach Frequently Asked Questions
4.
Which condos are accessible to wheelchair users?
a.
There will be one accessible, 3-bedroom condo at Bermudiana Beach:
Groundfloor Astwood #4, 1 Atlantic Crescent, has a lock-off that will allow two
separate hotel rooms to become a wheelchair-accessible 1 King Bedroom Grand
Suite and a 1 King Bedroom Deluxe Suite. Astwood has been chosen owing to
its proximity to the entrance, reception, and amenities.
b.
If a buyer wants a particular condominium to be made accessible
this can be considered subject to the above.
Pa g e 19
IV
BUYING A
CONDO
A.
Financial Considerations
1.
What are the list prices of the condos at Bermudiana Beach?
a.
Prices start at $412,500 for studios, $459,000 for 1-bedroom, $614,000 for 2-
bedrooms and $825,000 for 3-bedroom homes.
b.
HOA fees will not be charged until the hotel opens.
2.
Do I buy in Bermuda dollars or US dollars?
a.
Bermuda uses Bermudian Dollars and US Dollars. The Bermudian Dollar is pegged to
the US dollar at
1:1.
3.
Can I get a mortgage to help me buy?
a.
Each institution has its own rules for determining eligibility. Some prefer to lend
to prior depositors.
b.
Local lenders may offer residential mortgage products to overseas buyers
although there are some restrictions as it relates to US citizens due to regulatory
rules. However, interest rates are significantly lower in other countries so many
overseas buyers use their assets at home to raise the necessary capital and
effectively buy in Bermuda as cash buyers. We will refer you to local lenders for
those seeking a mortgage.
4.
What property can a Non-Bermudian buy in Bermuda?
a.
Non-Bermudians may only buy property valued above a set minimum Annual
Rental Value (ARV). The minimum ARV for houses is $126,000 and $25,800 for
condominiums.
b.
The ARV is used to determine land tax and is not necessarily a reflection
of market value.
c.
Houses with a qualifying ARV start at approximately $2,350,000 and
condominiums at approximately $320,000. ARVs may be viewed on the Land
Valuation Department’s website www.landvaluation.gov.bm The effect of these
guidelines means that only the highest valued properties are available to
non-Bermudian buyers.
Bermudiana Beach Frequently Asked Questions
Pa g e 21
Bermudiana Beach Frequently Asked Questions
in Bermuda.
e.
A Non-Bermudian is permitted to own up to 2 properties.
f.
A Non-Bermudian is not permitted to acquire vacant land except in
specific tourism developments.
g.
Non-Bermudians who buy property are not able to rent it out for short-term or
holiday rentals unless it is in a specific
hotel
tourism designated development.
Non-Bermudians may be granted permission to rent their property on a
longer-term basis upon application to the Department of Immigration which is
subject to a tax of 7.25%.
5.
What property can a Bermudian and holder of a
Permanent
Resident Certificate (“PRC”) buy in Bermuda?
a.
A PRC is able to buy any property on the market with some exceptions.
b.
A PRC is not permitted to acquire vacant land, a property that is part of a
Government Scheme, and may not rent out a property that they own which has
two assessment numbers.
c.
A PRC is permitted to own up to 2 properties.
d.
A PRC married to a Bermudian no longer needs to apply for a license to own real
esta
t
e
when
pur
chasing
join
tl
y
.
6.
Other Property Buying Costs
a.
Stamp Duty
1)
In Bermuda Stamp Duties are charged on a sliding scale: 2% on the first
$100,000; 3% on the next $400,000 (up to $500,000); 4% on the next
$500,000 (up to $1 million); 6% on the next $500,000 (up to $1.5 million); and
7% on everything above $1.5 million. (Thus, any property sale for more than
$1,500,000 will incur stamp duty of $67,000 plus 7% of the value above
$1,500,000.)
This
c
ost
is then normall
y
shar
ed
be
tw
een
the
buy
er
and
seller
.
2)
At Bermudiana Beach stamp duty is waived completely. Based on our
pricing we estimate this represents a saving to the buyer of between $5,000
and $20,000.
b.
Other Tax Matters
1)
Are there tax benefits if I buy at Bermudiana Beach?
2)
You will need to seek advice from a tax specialist with expertise in your own
country’s laws to assist you with this.
Pa g e 22
d.
Bermudians must acquire an Acquisition License to buy a property
Bermudiana Beach Frequently Asked Questions
3)
Do I need a tax advisor to assess tax liability in my home country?
4)
Again, you should seek advice from a tax specialist.
5)
Other
tax
es:
Ther
e
ar
e
no
o
ther
tax
es
on
property
.
c.
Acquisition License Fee (for overseas buyers only)
1)
Non-Bermudian buyers must obtain an Acquisition License from the
government to buy property in Bermuda. Applications are made through a
local attorney of their choosing and at present cost 8% of the purchase price
for a single home or 6% of the purchase price for a condo.
2)
Because owner occupancy is limited to 90 days a year, the Acquisition
License fee at Bermudiana Beach is waived. Based on current prices this
represents a saving to the buyer of between $25,000 and $70,000.
ci.
Conveyancing and other miscellaneous legal fees
1)
Legal fees for conveyancing are charged on a sliding scale set by the
Bermuda Bar Association. The rate starts at 1% of the sale price for the first
$250,000. The rate is then 0.75% for the next $250,000 of the sale price. The
rate continues to decrease in stages as the price increases until the price is
$2,000,000 or more and the rate charged is 0.125%. Generally legal fees are
split between the Vendor and Purchaser in equal amounts, with each party
being responsible for any additional personal legal and incidental costs
incurred during the conveyancing process.
2)
At Bermudiana the Vendor’s legal costs incurred in connection with the
preparation of this Agreement and the Lease shall be paid by the Purchaser
to the Vendor’s Attorneys on the Actual Completion Date in the sum
of $3,500.
3)
In addition, the purchaser will also pay $1,000 for the preparation of the Sale
& Purchase Agreement as established by the Bermuda Bar scale of fees.
cii.
What additional costs are there apart from the purchase price?
1)
Additional costs would be $3,500 for the legal documentation, plus any
personal legal costs which the buyer’s attorney should advise you on. In
addition, the purchaser would pay $1,000 for the preparation of the Sale &
Purchase Agreement.
ciii.
Are there closing costs, etc.?
1)
Closing costs as above, Stamp duty on the conveyance is waived for first time
buyer Bermudians, which is a significant saving to this group.
Pa g e 23
B.
Legal Matters
1.
How do I own the property?
a.
At Bermudiana Beach your condominium is real estate that you individually and
wholly own by deeded title on a 999-year leasehold basis. Everything else is owned
by Bermudiana Development Co Ltd. This is a condition of the franchise agreed with
Hilton.
b.
You will own your condominium through what is known as Condominium
Ownership
–
“Condominium” is a legal term used in the U.S and most Canadian
provinces. In the US, the laws governing condominium development and
ownership can vary from State to State. Nevertheless, it is universally understood
to mean a development consisting of residential dwellings that are individually and
wholly-owned.
c.
Bermudiana Development Company Limited will therefore own all external and
common
hallways and entryways
, recreational and social facilities, exterior walls,
the building roof, and other exterior accoutrements such as landscaping,
driveways, open
spac
es,
e
tc.
f
or the
bene
fit
o
f
the
H
omeOwners
’
A
ssocia
tion
and
ho
t
el
guests.
2.
What is a 999-leasehold interest?
a.
Condominiums in Bermuda are owned as leasehold interests.
At Bermudiana Beach the length of the lease is 999 years
–
“the leasehold equivalent
of freehold real estate”!
b.
You will have to pay a monthly amount for maintenance, which covers the running of
the general amenities (see points 4 and 5 below), plus a one-off payment that buys
you ownership of the lease until you either sell it, or it expires.
c.
Leasehold purchases generally occur in buildings that comprise more than one unit,
such as blocks of condos/apartments. Alterations are limited in accordance with the
head lease as well as other restrictions imposed by the landlord/owners
committee. You will have some input on the condominium rules and regulations as
owners will be consulted via the AGM.
d.
Leases can vary greatly in length. Most recent developments in Bermuda are sold
with a 999-year lease.
e.
As a leaseholder, you are in no way obligated to retain the lease. You can sell at any
time.
f.
You will be required to pay a maintenance fee to help cover the upkeep of the
building, common areas and amenities. This can cover painting, landscaping,
cleaning and repairs to the exterior and communal areas, lighting, building
Pa g e 24
Bermudiana Beach Frequently Asked Questions
insurance as well as a fee for the managing agent. Payment is a condition of the
lease and failure to pay may result in you being served notice.
3.
Will I need a local attorney?
a.
Yes. Once you have decided on a property/home, and before you sign the Sale &
Purchase Agreement drawn up by the Seller’s attorney, you will need to retain a
good
Conv
e
y
ance
Lawy
er
.
A
t
y
our
first
me
e
ting,
bring
as
much
in
f
orma
tion
about
the property, the Seller, and the transaction as you possibly can. You will also
want to discuss with your lawyer, all likely costs associated with the buy of your
condominium
,
including legal fees, bank administration fees, stamp duty, closing
costs, etc.
4.
Do I need an Overseas Buyers (Acquisition) License to buy
a condo in Bermuda?
a.
As an overseas buyer you would normally need an Acquisition License (also
known as a Landholding License) to buy a property in Bermuda.
b.
But at Bermudiana Beach, owing to a specific Government legislation for
Bermudiana Beach , this license fee is waived provided you put your
condominium into the hotel rental program.
c.
Based on the average price of the condos at Bermudiana Beach we
estimate that this results in a saving to the buyer of approximately $50,000
compared to the purchase of a traditional condominium.
5.
What happens if my Acquisition License isn’t granted?
a. In Clause 5.6.2 of the Sale & Purchase Agreement it states that if the License in
Principle is not approved on or before 6 months from the date of this Agreement,
then either the Vendor or the Purchaser may by written notice rescind this
Agreement and refund the Deposit to the Purchaser within 10 Working Days and
there shall be no further liability or claim between the Vendor or the Purchaser with
respect to this Agreement.
6.
Who pays the legal fees on the transaction?
a. The legal fees for the preparation of the Sale & Purchase Agreement and
L
easehold
A
greemen
t
ar
e
$1,000,
paid
f
or
by
the
purchaser
.
The
A
tt
orne
y
Co
x
H
alle
t
Wilkinson
Limit
ed
is
Bermudiana
Beach
’
s
legal
r
epr
esen
tativ
e.
7.
Can buyers use Cox Hallett Wilkinson Limited or do they have
to have their own attorney?
a.
Co
x
H
alle
tt
Wilkinson
Limit
ed
is
one
o
f
Bermuda
’
s
leading
c
ommer
cial
la
w
firms
and
has been engaged by the project to prepare all legal documentation in conjunction
with K&L Gates in New York.
Pa g e 25
Bermudiana Beach Frequently Asked Questions
b.
Buyers should use their own attorney to review legal documents prepared by these
attorneys. Here is a list of Bermuda lawyers we would recommend:
1.
Trott & Duncan – Perry Trott and Delroy Duncan
2.
Chancery Legal – John Blackwood
3.
Terra Law – Nadine Francis
4.
Marshall, Diel, and Meyers – Darren Donnithorne, Kimonea Pitt
and Roshanda Smith
5.
Appleby - Neil Molyneux
c.
Will owners be able to delay closing until the hotel opens?
a. Sadly no. Furthermore, delaying buying will miss out on “early-bird” rates.
8.
What happens if the hotel development fails and the hotel
doesn’t open?
a. This cannot happen as this project has the full support of BHC, a Bermudian
government agency, supported by the Bermudian government. The hotel will open
come
wha
t
may
.
9.
Will I have to go through an anti-money laundering (AML)
process?
a.
Since 2018, Bermuda real estate has been subject to globally established and
recognized anti-money laundering (AML) legislation, which requires additional due
diligence for all sales transactions in Bermuda.
b.
All related and supporting documentation will have to be submitted to the
regulatory body upon the execution of a Sale and Purchase Agreement.
c.
Your attorney /agent will need to see your identification (passport, driver’s license)
or receive an original certified copy of these. They will assist you through this
process.
Pa g e 26
Bermudiana Beach Frequently Asked Questions
V
OWNING A
CONDO
A.
Usage Restrictions
Pa g e 28
Bermudiana Beach Frequently Asked Questions
1.
Can I occupy year round or are there owner usage restrictions?
a.
Section 3 of the Bermuda Immigration and Protection (Tourist
Accommodation and Hotel Residences) Regulations 2010, allows owners
to occupy tourism-designated property for a maximum period of 90 days
in any given calendar year. Bermudiana Beach’s condominiums are
classified as hotel residences rather than condominiums in a normal
apartment building and therefore the resort has to comply with the
above.
b.
So, if you own at Bermudiana Beach, you, your family and your friends
can use your condo for up to 90 days (3 months) each year. The other
275 days (9 months), plus any days and weeks you don't use from your
90-day usage allocation, can be made available for rent through the
Tapestry Collection by Hilton’s global sales and reservation system and
powerful 100 million-member Hilton Honors loyalty program.
c.
There are also seasonal controls to ensure the year-round viability of
the hotel as follows:
i.
Prime Season (May to August): During the Prime Season, you can
use up to 30 days of your 90-day allocation, either all at once or
split into multiple trips.
ii.
Tranquil Season (November to February): During the Tranquil
Season, you have unlimited use. You can spend your entire 90-day
allocation in one visit or split it into multiple stays, perfect for
escaping northern winters.
iii.
Connoisseurs Season (September/October and April): During the
Connoisseurs Season, you can stay up to 40 consecutive days, as
long as these days
are evenly split over two months, in other
words by taking 20 days in one month and another 20 in an
adjacent month.
2.
How will the Home-Owner’s Association be structured and
who will be running it?
a.
Owners
will
appoin
t
3
o
wners
’
r
epr
esen
tativ
es,
tha
t
can
r
o
ta
t
e
annuall
y
.
The developer will be represented by directors of the hotel management company
who
will
serve
in
a
c
onsulta
tiv
e
capacity
.
b.
HOA budgets and accounts will be produced on a regular basis, and the HOA will
keep a register of owners readily available for inspection.
c.
An AGM will be called each year to review annual accounts and budgets.
Bermudiana Beach Frequently Asked Questions
Pa g e 29
B. Home Owner's Association &
Operational Management
1.
How is the co-ownership relationship between
condominium owners and resort owners managed?
a.
Most condominium developments create a HomeOwners' Association (HOA) and
use this as a way of controlling shared responsibilities for common areas of the
property on behalf of the owner and the developer/operator.
b.
At Bermudiana Beach a new HOA has been created: South Shore Homeowner's
Association. SSHOA will be consulted on all major issues relating to the operation of
the Condos.
Bermudiana Beach and its personnel are not registered investment, legal or tax advisors, brokers or dealers. We can advise interested parties where to find
further information, but we cannot confirm or guarantee any financial projections they may make. "Tapestry" is a registered trademark of Hilton International
Holding LLC, an affiliate of Hilton Worldwide Holdings Inc. ("Hilton"). The Residences are not owned, developed, or sold by Hilton and Hilton does not make any
representations, warranties or guaranties whatsoever with respect to the Residences. The Developer uses the Tapestry brand and certain Tapestry trademarks
(the "Trademarks") under a limited, non-exclusive, non transferable license from Hilton. The license may be terminated or may expire without renewal, in which
case the Residences will not be identified as a Tapestry branded project or have any rights to use the Trademarks.
a. No. The license that allows home ownership will only give you the right to come and
go freely within your 90-day allowance
2.
What costs are the Management Company responsible for?
C.
Residency and Working in Bermuda
1.
If we buy a condo will we have automatic residency in Bermuda?
operation and maintenance of their condo. This includes electricity, telephone, TV,
internet, utilities and services.
2.
If we buy a condo can we work in Bermuda?
a. The granting of a work permit is entirely separate from the issue of home ownership.
D.
How are costs shared?
1.
What costs are condo owners responsible for?
a. Condo owners are responsible for all costs and expenses relating to the use,
a. The Management Company is responsible for all costs and expenses relating
to each condo building’s common areas and all hotel costs. These include:
• Hotel Payroll
• Hotel Sales & Marketing Costs
• Hotel Building Repairs & Maintenance
• A proportion of the Grounds Costs
• Hotel Utility Costs
• Hotel Insurances
• Hotel Management Fees
• Hotel Capital Reserve
