6. General Aspects of Bermuda Property Law

Question 1

The Minister of Planning surveys and prepares developments plans at least once every ?? years.

Answer 1

5

Question 2

Environmental conservation areas and special study areas are prepared under separate ??

Answer 2

Local plans

Question 3

Is planning permission needed for using an external portion of a building for advertising if it has not ordinarily been used?

Answer 3

Yes

Question 4

How long does permission for development and changes granted under the Planning Act?

Answer 4

Two years from the point of granting

Question 5

If a series of planning approvals are required, when does the permission expire?

Answer 5

2 years beginning on the date of the last matter to be approved.

Question 6

What does the Minister serve when a project is begun within the permission time but not completed?

Answer 6

A Completion Notice with a stated date to finish not less than 12 months.

Question 7

Does the Minister have the authority to return unfinished projects to their original condition and revoke or modify development plans?

Answer 7

Yes

Question 8

Any conveyance of land by way of a deed or transfer is an example of ??? under the Development and Planning Act.

Answer 8

Subdivision

Question 9

The granting, assigning or exercising of a power of appointment with respect to land is an example of ??? under the Development and Planning Act.

Answer 9

Subdivision

Question 10

The mortgaging or charging of land is an example of ??? under the Development and Planning Act.

Answer 10

Subdivision

Question 11

The entering into of an agreement of sale and purchase of land is an example of ??? under the Development and Planning Act.

Answer 11

Subdivision

Question 12

The entering into any agreement which has the effect of granting the use of or right of or right in land directly or by entitlement to renewal for a period of twenty-one years or more is an example of ??? under the Development and Planning Act.

Answer 12

Subdivision

Question 13

Is planning permission required for the subdivision of land?

Answer 13

Yes

Question 14

When does permission for the draft plan of subdivision expires?

Answer 14

3 years after the date of its grant

Question 15

What does the statute of frauds state?

Answer 15

All real estate contracts have to be in writing to be legally enforceable except leases for less than a year.

Question 16

How does The Conveyancing Act relate to the statue of frauds?

Answer 16

Makes this common law principle true for real estate sales contract must be signed by the party to be charged, while extending the legal validity of oral leases to periods of up to three years.

Question 17

What does the Conveyancing Act act state about leases to options to renew that would increase the tenancy to three years?

Answer 17

It must be in writing.

Question 18

What does the Conveyancing Act state regarding documents/deeds?

Answer 18

1. The language required in deeds
2. Who may hold original documents
3. Acknoledgements

Question 19

Can the vendor retain documents in cases when the vendor retains any part of the land?

Answer 19

Yes

Question 20

How long do ownership records go back?

Answer 20

Twenty years

Question 21

What happens in the case of leases that last longer than 21 years?

Answer 21

It may entitle the lessee to a freehold, fee simple, interest in the property

Question 22

The expenses related to providing proof of clear, unencumbered title become the responsibility of who?

Answer 22

The person requesting the proof

Question 23

Can a mortgagee insure, or require insurance, in excess of either the loan amount or the replacement value of the property?

Answer 23

No

Question 24

Where must all voluntary conveyances be deposited?

Answer 24

To the Registrar General

Question 25

When must voluntary conveyances be deposited and recorded?

Answer 25

Within 30 days of having been duly stamped in accordance with the Stamp Duties Act.

Question 26

What does a voluntary conveyance be accompanied by?

Answer 26

A memorandum, signed by or on behalf of the grantor(s) and grantee(s) containing the 1. date of conveyance, 2. the names of the parties, 3. a property description

Question 27

If a conveyance stipulation prevents any party from using an attorney of their choosing, what happens to the conveyance?

Answer 27

It is void

Question 28

"The rent at which a valuation unit might reasonably be expected to let from year to year if the tenant undertook to bear the cost of internal repairs, and the and landlord to bear all other reasonable expenses necessary to maintain the valuation unit" is referred to as what?

Answer 28

Annual rental value (ARV)

Question 29

The Land Valuation Act defines an owner, or "tax payer" of a valuation unit to include not only the person who is entitled to receive rental moneys but also who?

Answer 29

The occupier, in the case of 1. A rental for a period greater than three years 2. A life tenancy 3. Crown land

Question 30

Who has the responsibility of establishing the ARVs of all valuation units in Bermuda?

Answer 30

Director (of Land Valuation)

Question 31

1. Properties owned and occupied by the Crown 2. Domestic and foreign government buildings 3. Charitable organizations 4. Schools 5. Homes of clergymen 6. Day care centers Are examples of what in regards to the Land Valuation tax?

Answer 31

Properties that are exempt.

Question 32

The ??? list sets out 1. The ARV of each valuation unit 2. The location of the unit 3. The reputed owner 4. The actual occupier

Answer 32

The draft list

Question 33

If someone is contacted by the Director for property information, what time frame must one respond within?

Answer 33

21 days or penalties for failure to comply

Question 34

The Director may expect to gain access to a property by giving at list ??? notice for a request to enter, survey and value a valuation unit.

Answer 34

24 hours

Question 35

How many years is the draft valuation list updated?

Answer 35

5 years

Question 36

Where is the draft valuation list posted?

Answer 36

At every post office as well as the Director's office.

Question 37

How long is the list posted for public inspection?

Answer 37

At least 180 days

Question 38

Who charges and levies taxes?

Answer 38

The Tax Commissioner

Question 39

Where are taxes paid?

Answer 39

At the office of the Accountant General

Question 40

Where do taxes end up?

Answer 40

The Consolidated Fund

Question 41

How may the Tax commissioner act to collect unpaid taxes?

Answer 41

Distrain (taking personal property), garnishing wages, salary, pension.

Question 42

According to the Stamp Duties Act, Is any instrument executed outside Bermuda that would be subject to stamp duty in Bermuda be valid or registered in Bermuda?

Answer 42

No

Question 43

According to the Stamp Duties Act, is there a Schedule for time-after-execution for proper stamping of certain documents?

Answer 43

Yes, (some commence the day after execution, but some must be stamped before)

Question 44

According to the Stamp Duties Act, how are stamps fixed to documents?

Answer 44

Either adhesive stamps, or a franking machine.

Question 45

According to the Stamp Duties Act, who ascertains the value of stamp duty for a conveyance or transfer of propety?

Answer 45

The Accountant General

Question 46

According to the Stamp Duties Act, When property is conveyed for consideration, the conveyance is charged with what kind of duty?

Answer 46

Ad valorem

Question 47

According to the Stamp Duties Act, What happens if a purchase does not go through after duty has been paid?

Answer 47

It is returned

Question 48

When makes an appraisement chargeable with stamp duty, they make an offence in what two situations?

Answer 48

1. Neglects/omits to write out the appraisal on duly stamped paper 2. Discloses the amount of valuation/appraisement in any other manner

Question 49

What is the stamp duty on appraisements?

Answer 49

$25, or 1/4% for appraisements under $10,000

Question 50

Are leases charged with Stamp duty?

Answer 50

Yes

Question 51

How long after execution of a lease or mortgage is stamp duty due?

Answer 51

30 days upon execution of the lease

Question 52

What stamp duty is due on a primary or equitable mortgage of $400,000 or less?

Answer 52

.25%

Question 53

What stamp duty is due on a primary or equitable mortgage of $400,000 or more?

Answer 53

.50%

Question 54

What stamp duty is due on a secondary mortgage?

Answer 54

.10%

Question 55

Definition: tenancy of a premises let as a dwelling

Answer 55

Domestic tenency

Question 56

What kinds of domestic tenancies are NOT included in the ACT?

Answer 56

- Dwellings on agricultural land occupied by the workers - Tenancy for life/lives - Boarding rooms or houses - Tenancies in excess of 12 months of a house in which the landlord ordinarily resides - Tenancy of any premises with an ARV over $22,800

Question 57

Definition: Any person other than a mere collector who receives rent

Answer 57

Landlord

Question 58

Any consideration collected in addition to rent such as fines, other sums or other valuable consideration, is referred to as what?

Answer 58

Premium

Question 59

Who is the person under the Rent Increases Control Act that is appointed to carry out the Act?

Answer 59

Comissioner

Question 60

According to Rent Increases Control Act , the landlord has cause for forfeiture if the rent payment is not received in how many days?

Answer 60

15

Question 61

Rent Increases Control Act allows a notice to quit to take affect as if the Act had not been enacted in what circumstance?

Answer 61

If the tenant is determined to be an "undesirable tenant" - Uses the premises for an illegal purpose - Admits to the premise any person of bad character - Causes unnecessary annoyance, disturbance, or damage to the landlord or property - Is consistently late on rate

Question 62

In order to be in breaches to the agreement, at the time of serving a notice to quit for non payment the rent must be in arrears for how long?

Answer 62

2 months

Question 63

What are the two ways increases in rent are arranged?

Answer 63

1. By an agreement with a tenant | 2. Through an application to and grant of certificate from the Commissioner

Question 64

If a landlord wants to increase the rent (without going the agreement with a tenant route) what must they do?

Answer 64

Lodge a property notice of the increase with the Commisioner.

Question 65

Are rent increases that the landlord requires as a condition of continued and renewed tenancy legal?

Answer 65

No

Question 66

What happens when the application to increase rent is lodged with the Commissioner?

Answer 66

The Commissioner serves a copy on the tenant, who then has 14 days to return comments. The Commissioner will the approve or not approve

Question 67

Definition: any premium, including but not limited to the purchase and leaving of furniture in excess of rental value required as for the grant, renewal, continuance, or assignment of a tnenacy.

Answer 67

Key Money (prohibited)

Question 68

According to the The Bermuda Immigration & Protection Act, what must restricted persons do if they acquire land by means such as inheritance or foreclosure?

Answer 68

They may either be granted a license by the Governor, or hold it or be required to sell it, generally within three years of its acquisition.

Question 69

What must non-Bermudians do if they want to acquire property in Bermuda?

Answer 69

Apply for a license

Question 70

A non-Bermudian can buy a HOUSE if it's ARV is over what value?

Answer 70

$126,000

Question 71

Permanent residents can acquire a HOUSE if its ARV is over what value?

Answer 71

$63,600

Question 72

A non-Bermudian can acquire a condo/apartment if the ARV is over what value?

Answer 72

$25,800

Question 73

Multi-unit properties cannot be acquired by a non-Bermudian, except for what 2 cases?

Answer 73

- The property is already owned by a non-Bermudian | - One of the units has an ARV over $126,000

Question 74

According to the Landlord & Tenant Act, Landlords have certain repair obligations for tenancies of less than how many years?

Answer 74

3 years

Question 75

According to the Landlord & Tenant Act, the landlord is required to keep what 3 things in repair?

Answer 75

1. The structure and exterior of the house/apartment 2. Any cesspool connected to the property 3. Installations for the supply of water, gas, electricity, sanitations, and heating water

Question 76

According to the Landlord & Tenant Act the landlord is NOT required to keep what 3 things in repair?

Answer 76

1. Repairs necessitated by tenant destruction or misuse. 2. Destruction due to fire, tempest, flood, or any other inevitable accident. 3. Anything that the tenant is entitled to remove from the dwelling.

Question 77

When does a contract tenancy for a specific period of time terminates?

Answer 77

Without notice at the end of the period.

Question 78

When do tenancies from year to year be terminated?

Answer 78

Not less than 6 months' previous notice given at any time after the first year of tenancy.

Question 79

When do tenancies for successive periods of more than a month and less than a year be terminated?

Answer 79

By notice not shorter than the rental period given at any time after the end of the first rental period.

Question 80

When do tenancies for successive periods of a month or less be terminated?

Answer 80

At the end of the rental period not less than one month's previous notice.

Question 81

When do contracts of tenancy terminable on notice by either party terminate?

Answer 81

On the expiration of notice given in writing and personally delivered to the other party.

Question 82

When either a tenant or landlord seeks to terminate a tenancy based on the breaches of the other's obligations what must they do?

Answer 82

Apply to the court for an order to terminate the contract of tenancy.

Question 83

During an application to terminate tenancy (and before court decision), does the tenancy continue and rights and obligations of parties remain enforceable?

Answer 83

Yes

Question 84

According to the Landlord Tenant Act, when a premises has not been vacated, is a landlord entitle to compensation?

Answer 84

Yes

Question 85

Does the Landlord Tenant Act allow the landlord to distrain/seize a tenant's property?

Answer 85

No

Question 86

According to the Landlord Tenant Act, if a landlord accepts compensation or past rent after the expiration of a tenancy or notice or oder for the termination does the acceptance operate as a waiver of the notice or a reinstatement or creation of a tenancy?

Answer 86

No, unless the parties so agree.

Question 87

Which two situations are exempt from the Human Right's Act?

Answer 87

1. Members of the opposite sex can be barred from tenancy if the the whole residency is, or all rooms in a single accommodation are restricted to individuals of the same sex. 2. In a building that contains accommodation for three or less families living independently if the owner or family members occupy one such accommodation.