Even in paradise, nothing is perfect. When vacationing or residing in The Bahamas the hurricane season is a dreadful occasion which calls for stern preparation, anticipation, and crossing fingers when guarding your property and securing your life.

At this present moment it seems as if this year’s hurricane, Hurricane Earl, will skim past the easterly borders of the archipelago and continue its projected path northward. But seeing the rough seas while driving along the coast serves as a reminder of the vicious and unforgiving nature of these monstrous gales that seemingly poke and tease the belly of the nation’s capital for some time. Instead they have chosen to devour the surrounding family islands, including the nation’s second city, which has seen its fair share of natural disasters.

As we watch the first of the hurricanes we are reminded of the second storm, Hurricane Fiona, whose path is predicted to come even closer to the archipelago. Hopefully this year Mother Nature’s beast will decide to lose itself in the middle of the Bermuda Triangle, but until that day arrives we strongly advise everyone to monitor the storm and to make the necessary preparations just in case the tempest decides to knock on paradise’s door.

This month marks our first year operating the LEX JUSTIS blog. Thank you for taking the time for visiting us, especially to our returning visitors who numbers grow on a daily basis. As we bear witness to the ever-changing temperament of the practice of law in this unique culture of The Bahamas, we will continue to push forward in promoting innovation and increased interaction with our clients worldwide.

We would like to introduce our new category entitled “LEGAL BISCUITS” containing current, informal summaries of the legal comings and goings taking place in The Bahamas. Expect to see our normal legal commentaries every two weeks, while biscuit entries should take place on a weekly basis. Bookmark us or join us in Face book or Twitter today!

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“For last year’s words belong to last year’s language, and next year’s words await another voice. And to make an end is to make a beginning.”

– T.S. Eliot

As 2010 begins with the traditional cold front temperatures and early morning traffic jams we are looking forward to building on last year’s achievements with more innovation and perseverance. It was always our mission to provide informative legal perspective for those interested or presently active in The Bahamas, and we will continue to find ways to spread our unique message throughout the world.  Thank you for your effortless support.

Since we started this blog site we can attest to the unique transformation this simple boutique legal practice has taken. We have taken a step away from the rest.

We wish you much success this 2010 year.

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We will be back on January 4th…

Have a great holiday

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…We are bombarded with lawyer jokes and ridicule. We laugh politely at the jokes, and, I have to confess, I have told a few myself. Don’t do it. For hundreds of years, society considered the law a noble profession, and lawyers have been the stalwarts of defending legal rights. Lawyers desegregated the schools and improved product safety.

Even the most vocal of lawyer bashers are the first to call a lawyer when they feel their rights are being trampled upon. And finally, don’t forget that the most famous lawyer bash — “[t]he first thing we do, let’s kill all the lawyers” — was actually an acknowledgement by Shakespeare in “Henry VI, Part II” that lawyers must be eliminated in order to achieve a revolution. Be proud to be a lawyer…

A word of advice by District Court Justice Randy Wilson of Harris County, Texas. Click here for the full article.

After much patience and detailed research, Richworks has provided an interesting summary of the development of 50 of the world’s most recognized trademarks which in our view demonstrate how long term corporate endurance is influenced by the entity’s ability to change with the generational era.

From reading the brief history of corporate juggernauts like Shell and Pepsi, you can see the masterminded precision by corporate executives to tie their corporate image into the mindset of their customers, while the creation of corporate logos such as Cadillac was committed under mistaken circumstances. The blog article is definitely worth the read. Click here for the full article.

Last week I managed to take a glimpse of the super ship “Oasis of The Seas” make its first docking in Nassau Harbor while making my way to town. While dwarfing the traditional cruise ships while managing to keep afloat at a towering 18 stories above sea level the ultra mega ton flagship of Royal Caribbean International is a marvel unto itself. I did not get the opportunity to view the docking ceremony, but surely the 5,000-plus passengers managed to get the flow of blood pumping through the veins of the Bay St. vendors and tour guides just before the Christmas rush.

Unfortunately reality takes a bold step whenever something good happens for the island home land as the country learned of the popular cruise line’s warning to its passengers concerning the criminal uprising whose vice grip steadily tightens around the neck of this island nation.

The past few months have borne witness to brazen crimes against Islands’ economical bread basket as the criminal element targeted tour groups enjoying historical sites and nature walks, causing immediate damage to the flair of the Bahamas’ global brand with eye catching testaments to the sullied proficiency of the nation’s arm of justice, put on display for the world to see. Crimes committed against tourist often leave a bad after-taste in your mouth, especially when you reside in a country where an estimated $.90 cents of $1.00 comes from the sand lined trunk pockets of the international traveler. It’s no wonder why the Bahamas Government waste no time in opposing similar warnings communicated by the US and other countries.

Compared to other Caribbean islands, crimes against tourist in The Bahamas is a rare occurrence. Ever since the country was promoted as a widely known tourist product, citizens have been literally brainwashed to treat the visitors to the island like gold, and the majority of the islands inhabitants rely on that dollar earned from the tourist and financial sectors in order to achieve their dreams. For those residents who decide to commit an act of crime against a tourist are harshly dealt with, as if those crimes held equivalent punishment as an act of murder. Unfortunately for the brazen bandits that took part in the recent tourist robberies, there is a high probability that they will stay in prison for the maximum amount of time.

It is a shame that the acts of a handful of bandits can damage the image of Bahamas tourism, but the reality is crime is everywhere and it takes place every day of our lives. Although fortunate visitors find themselves in paradise they are expected to exercise due care and caution as if they were in their own country. If you are planning to visit The Bahamas here are a few safety tips which may assist you in your travels:

• Traditionally tourist who visit New Providence tend to migrate within the Downtown, Cable Beach, and Paradise Island districts all of which are located along the Island’s northern coastline. The Paradise Island Bridge is located just 5 minutes east of downtown Nassau, and the majority of popular beaches, business, and shopping districts and are found to the north and northwest of the island. If you are unfamiliar with New Providence, make good use of this information as a reference point should you find yourself lost while venturing throughout the island.
• Always keep your baggage in view, especially at the airport, your hotel, and when getting in and out of taxis. If you travel with two or more shopping bags, tying the opening of the bags together will make it easier to carry and will make it a difficult target for thieves. When shopping always obtain a receipt for goods purchased, as the receipt can be used to exchange or refund faulty merchandise from most Bahamian stores.
• Be wary of individuals who approach you offering discount merchandise, accommodations, transport, or money exchange services as there is no immediate way of validating the authenticity of the items offered.
• Since most stores accept credit cards and almost all ATMs cater to most popular international banks, we advise that you avoid taking large amounts of cash or valuables on your vacation. Keep all valuables, especially passports in the hotel deposit box, or guest safe boxes in the hotel room.
• If you meet someone new, exercise great care and caution if you decide to invite them in your room. If you are travelling with others, ensure that you tell someone in your group and ask them to check on your upkeep via telephone or a short visit to your hotel room. If you are travelling alone you can request the same from the front desk at the hotel. Avoid taking drugs if offered by your visitor and be careful not to leave your beverage alone in his/her presence as ‘drink spiking’ is more common than most people believe.
• If you are visiting one of the Bahamian out islands be mindful of the fact that most business and shopping facilities are sparsely located. Most outer islands have one or two main highways which may run north to south and east to west along with road signs which will assist you in your journey. Therefore if you decide to rent a vehicle, make sure your gas tank is adequately filled along with a good supply of drinking water to accompany you during your travels. A map of the island will be a very helpful tool to assist you in locating the island’s supply of isolated beaches.
• In the majority of cases Bahamian residents are considered to be friendly and always ready to lend a helping hand to visitors of their island. Therefore if you are in need of help do not be afraid to ask! For emergency purposes, dail 919 for police assistance.

http://www.nassauguardian.net/index.php

As the holidays makes its way to the islands, business vendors stock up on their best products while making the highest possible profit. It is important that all shoppers avoid unnecessary frustration of purchasing defective products or being scammed by exercising reasonable care and caution when making purchases.

Listed below are a few tips on avoiding departing ways with precious earning on lackluster products:

False Advertising

If the advertisement for a product is too good to be true, it probably is. Whether it offers an over exaggerated discounted price on an item or over-the-top abilities of an item, misleading advertisements are often seen during the holiday season, particularly in relation to huge discounts and saving on popular items.

Always inquire about these types of advertisements and be cautious about the information the vendor provides about the offers being advertisements as it may make a difference in the amount of money you save this holiday season.

Second Hand Goods

Second hand goods can make an affordable holiday gift, but be minded that these goods will not hold the same quality of a item purchased brand new. Most vendors place second hand goods under an exchange based policy, should the item stop functioning within a specified amount of time.

It is important to properly inspect and test the second hand items before purchase. This is mostly important for electrical or mechanical items.

Shopping Online & Ordering Via Telephone

Be sure to shop with reputable companies. Make sure the seller lists a known address or toll-free number just in case you have a problem. Use only “secure” web sites and reputable companies. (You can tell if a site is secure by looking for a small padlock icon in address bar).

Be sure purchases are refundable or exchangeable in case you are not satisfied. Get all details on shipping and handling fees, refund and return policies, and complaint procedures. Record/ print it out and keep records of your purchase. If possible purchase an item via credit card so you can dispute the bill and withhold payment if necessary.

Testing Items Prior to Purchase

When purchasing any mechanical or electrical item ensure you get an opportunity to test them before taking them home. At the customer’s request, most vendors would allow the item to be taken out of its packaging in order to test the item before purchase.

Be cautious about slightly discounted items as they may carry some product defects. Although the items may be subject to the vendor’s refund/ exchange policy, it is far better to avoid handling a defective product than to make another trip to the vendor’s store.

Returns, Exchanges and “layaways”:

Be sure to review the store’s return or exchange policy which is traditionally found either near the teller, at the entrance of the store, or printed on the receipt. It is also a good idea to inquire whether the stores have any in-store credits, exchange policies and other similar policies before you purchase items from a vendor.

Always secure receipts, especially when making deposits for the eventual purchase of items. Most stores will not make refunds without them. In addition, make sure you know a store’s policy on returns or layaways before you make a purchase.

Gift Certificates:

If you’re thinking of buying a gift certificate, check the store’s policy. Find out if the store will give a credit or cash return if the purchase price is less than the value of the gift certificate, and any other terms the store places on the certificates.

A gift certificate issued by a retailer that files for bankruptcy or closes its doors may become worthless. If a retailer files for bankruptcy, consumers should call to find out if the store is still accepting gift cards.

Charitable Giving:

Ask for written information, including how much of the money raised is actually used for charitable purposes and how much will end up in the hands of the professional fundraiser. Do not be pressured into making a contribution or pledge.

Do not feel obligated to send a donation to charities that send token gifts such as key chains, greeting cards, mailing labels, etc. Make certain the charitable organization actually serves the need it claims to serve. Ask for financial statements of the organization to determine who will benefit from the donations.

Complaints:

Upon making a complaint to the vendor about the purchase of an item and the dispute is not resolved, it is best to write a letter of complaint to the store’s head office, or the Bahamas Consumer Complaints Department at telephone number (242)328-2700.

You may also address your letters of complaint to The Ministry of Local Government & Consumer Affairs, P.O. Box N-3040, Nassau, The Bahamas.

We have spent a lot of time focusing on promoting the ownership of vacation homes and properties in The Bahamas and now, dedicating a space within the Chamber Life section to the struggles of home ownership for the everyday Bahamian is long overdue. Living in a tourist – centered island economy has its side effects as most Bahamians find themselves flustered by high priced real estate within nation’s capital, while most major developments throughout the family islands  caved in from the pressures of the global recession have placed a lid on home ownership on the outer islands by Bahamians.

The purchase of one’s first home is a milestone in itself; so significant that the Bahamas Government had decided to extend its provision of exemption from stamp duty fees for first time home owners.  A Bahamian that saves up for a down payment to a home is looked at with great admiration, and those who plan for the construction of a duplex or triplex unit are doing better than the rest. For those residents who are serious about home ownership, the article below provides great inspiration and advice.

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THE ULTIMATE GOAL

By SHAVAUGHN MOSS ~ Lifestyles Editor ~ shavaughn@nasguard.com:

http://www.nassauguardian.net/social_community/5639810679580.php

Doreth Smith has a dream — and that is to one day own her own home, but the steady escalation of property prices in The Bahamas makes it seem that her dream will remain just that — and not become reality.

Smith, is just one of thousands of people throughout the country who have a goal of moving from paying rent to purchasing/building a home.

For the 30-year-old single mother of a three-year-old son, the thought of home ownership is that much more important as she strives to put a roof over their heads.

Unlike many people who just dream and make no effort to save the requisite five percent plus closing costs that most financial institutions ask for, Smith is doing it all — dreaming, saving and for the past three years — looking for the place that she can afford.

She estimates she would need a down payment of at least $20,000. To date, she has half that amount stashed away, but admit it’s been challenging. From time-to-time she’s had to dip into her savings to pay for unexpected bills, but she says her sights are focused on the prize.

“It’s challenging when you’re already living on a shoestring budget and have other financial obligations . . . and we’re not talking about taking trips to Paris or London. We’re talking necessities — food, light, water.”

Over the past months as a buyer’s market emerged in the United States as the real estate market “tanked” and some people wondered whether that trend would emerge in The Bahamas market, and help them with an easier path to home-ownership, it was not to be. The Bahamian market remained unchanged and real estate prices remained high.

The U.S. housing market is now said to be on the rebound, and whether or not local real estate prices will again be driven higher remains to be seen. For people like Smith, who aren’t looking for a huge piece of property or a mansion for a house, the struggle gets tougher. She’s no longer looking to build as she believes the ideal solution for her is to now purchase a house and lot package.

“For me, it makes no sense at my age to purchase a piece of property, because my monthly payments would be anywhere from $500 to $900. That means I have to take the $10,000 I have saved and turn that over into banking fees, lawyer fees, and at the end of the day still paying a $500-plus monthly fee, and have to wait five years until the age of 35 to possibly hear a financial institution say to me that even though I’ve built up the equity, they cannot extend to me a mortgage, because of my salary. To me, it’s most beneficial to purchase packaged property.”

The drawback for Smith who falls in the $30,000 to $40,000 salary bracket is that she qualifies for just $100,000.

“I’ve found that somewhat discouraging but in the midst of the discouragement I still have to persevere, and save, and hope that my day will come.

The government ministry employee says she’s not the only person struggling to own a home. She has friends who are working in the private sector, who earn salaries that are beyond hers, who still have the same challenges.

“We are the generation that was said to have been more developed than our parents and grandparents, but when you look at the full scope of things, progression has taken place in education and professionalism, but we can’t seem to possess what your parents or grandparents did. We say that we are interested in Bahamians owning a stake in the land and having their own home, but how realistic is it becoming?”

She says more parents need to encourage their children who have graduated from high school and college and are in the job market to save first, and purchase something that appreciates in value, rather than something that depreciates. This is an ideal she expects to “pound” into her son.

She also rues the day when he has to purchase property for himself – if she isn’t able to do it – and get a head start in life. “As a single parent, at the end of the day, I’m aware of the frustrations that I’m going through to ease his burdens. As he comes up, how financially feasible is it for me to lessen his burden if I have a challenge in putting a roof over our heads?”

It may not happen tomorrow, or even in the next 12 months, but the one thing Smith is certain of is that she will one day have her own home.

A mortgage loan officer at a leading financial institute (who requested anonymity) says many Bahamians who were hoping the decline in the U.S. housing market may have affected The Bahamas in some way and helped them realize their dream of home ownership were in for a rude awakening. The local real estate market she says hasn’t seen a drop, and the same prices that were being quoted five to six years ago remain the same, and in some instances have gone higher.

She also said that in recent times, there have been quite a few more persons being turned down for mortgages, simply because they did not plan.

“You have to do some [cash] injection, even though some institutions are advertising zero-dollars down. When you don’t do any injection that does have a toll on you, because the mortgage payments are higher, and it takes longer for you to see any equity.”

Her best advice is for you to save something, no matter the amount of money you make, so that you would have something to go to the loan officer with.

Another major advice she says is to remain realistic in what you hope to purchase, advice she says a lot of Bahamians don’t heed. “They want the triplex which costs more than the single family home, but, especially if you have a child, if you get the single family home now, you can make bigger steps later. No one says you have to go directly to the top of the mountain when you’re first starting out, but a lot of Bahamians want it all one time.”

The mortgage loan officer also says persons seeking a mortgage should remember that their income limit, which should service all credit payments is 45 percent of their monthly income.

“If you’re already paying out 60 percent of your income, you cannot get a mortgage — that’s the reality of it.”

Another major headache for loan officers are those persons who come to them seeking to purchase a home or property, and have a balance of $30,000 to $40,000 from a previous loan which they think the bank should absorb, because they have their five percent and closing cost.

“When you add the amount that we’re absorbing, to the 95 percent the bank can finance, then the bank is going to be over-advanced, because banks qualify on the lesser of the appraisal. So if the house you want is appraised at $200,000, and you’re buying at $180,000, and you only put five percent of that $180,000 in, and you want us to take over that $40,000, that 95 percent, plus that $40,000, loan you already had, we’re lending you way more than the property is worth, and banks won’t put themselves in that position,” she said.

Besides necessities like light, water and rent, the mortgage loan officer says you should go to your bank of choice with a clean slate, when you’re ready to purchase property or build a home.

Tuesday, November 1, 2009