…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.
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Mario L. McCartney is the Founder and Principal of LEX JUSTIS, a boutique law firm providing Corporate, Private Client, and Traditional legal services in the Commonwealth of The Bahamas. Mr. McCartney is also the present editor and main contributor of firm’s blog site and welcomes all opinions and comments to his articles. |
| For further information on all legal services provided by Mr. McCartney please visit the LEX JUSTIS website @ www.lexjustis.com or email him at mmccartney@lexjustis.com, mario.l.mccartney@gmail.com. | |
BY CLEMENT CHIGBO
One of the universally recognised difficulties to the common law principles of relativity has always been that claims to land are secure only to the extent that no other person can assert a better claim. This relates to primary real right [an estate in fee simple absolute in possession] in land as well as secondary or subordinate real rights in land [incorporeal hereditaments like easements, covenants etc].
If the common law were to allow prior possession as a consistent and legitimate basis to recover possession from a later possessor, then land title could become the subject of potentially indefinite or open-ended conflict. If the foregoing were to be the case, it will mean that the current possessor of land would remain constantly vulnerable to a claim advanced by some earlier possessor. It is in light of the above that the doctrines of adverse possession and prescription can be justified as being both necessary and inevitable. The restrictive principle which seeks to address the above mentioned issue operated in the context of a principle of limitation which seeks to curtail the prior possessor’s right to recover possession after some time. [See the Limitation Act 1980]. Thus, adverse possession and prescription play an important role in land law to conclusively bar all prior rights of recovery following the expiration of a legally stipulated limitation period under the Limitation Act 1980 and the Prescription Act 1832.
Hence, on a more practical note, prescription has not only had a role to play in protecting retrospective interests, but also in mediating claims for access and use between landowners and hence, its continuing relevance in the law of real property.
The continuing relevance of prescription in the law of real property was succinctly captured and encapsulated in the witty and epigrammatic summation of Lord Hoffman in R v Oxfordshire County Council; Ex parte Sunningwell Parish Council (‘Oxfordshire County Council] to the effect that “Any legal system must have rules of prescription which prevent disturbance of long-established de facto enjoyment”. Adverse possession invariably has a somewhat similar objective.
The courts in England have always had ‘a strong policy bias in favour of the legitimacy of a user which has been exercised de facto over extended periods of time. Thus, it is not surprising that for centuries, prescription has been an important basis for claiming easements and other interests in land in England.
Prescription is based on the rationale that over time a person may acquire an interest in land on the basis of de facto long continuous user.
Note however, that in registered conveyancing system modelled after the Torrens system that prescriptive easements have only a minimal role to play in such a registered system. In order to understand how prescription or adverse possession operates, one needs to understand the doctrine of tenure under English law of property which does not admit of the concept of ownership.
The doctrine of tenure — under which a person did not own the land, but held it as a tenant of the Crown or a feudal superior — has shaped English land law. Therefore, juristically speaking and in a highly technical sense, English law never employed the concept of ownership to land. Rather, for much of the history of English land law, possession and physical control of land dominated legal reasoning about title and rights to land.
All titles to land were based on possession or or what is commonly referred to as‘seisin’ — so that a person seised of land prevailed against all others who could not show a better right to seisin.
Title was relative and can never be indefeasible. For instance, in an action to recover land, it was not necessary for the defendant (or plaintiff) to prove absolute title. The issue was whether the defendant could establish an earlier and better seisin. It has been variously argued that title was also defeasible because even if seisin was wrongfully taken by a disseisor, they had good title against all except the disseisee and their successors in title.
Thus, it is trite beyond any doubt that exclusive possession de jure or de facto, now or in the future, is the bedrock of English law of real property law.
Note that under English law, a person did not simply acquire an interest in land because of their use of that land. Rather, after a lapse of time, the law either barred an owner from asserting an interest contrary to the claimant or it was presumed that the owner or their predecessor in title had granted the claimant a lawful title. This is the basis of acquisition of title by prescription and adverse possession but the sharp distinction must be noted.
The former was the basis for the law of adverse possession, while the latter established the legal rationale for the law of prescription. See Limitation Act 1980 and the Precription Act 1832.
Prescription was not founded on exclusive possession, but on de facto enjoyment which fell well short of complete control. Nevertheless, prescription was based on a physical connection with the land for a significant period of time. Prescription has been defined as ‘a title acquired by use or enjoyment had during the time and in the manner fixed by law.’
A party who successfully claimed an easement by prescription not only acquired an interest which was carved out of a larger estate, but also an incorporeal right or hereditament. Incorporeal hereditaments refer to those rights and interests that are appurtenant to or appendant to the principal right or interest in land. In civil law countries, right to land or heritable property are classified between primary real right [ownership] and secondary or subordinate real right in land [eg servitudes or easements or real burden or covenants].
They are like pertinent of ownership of land ie those other rights that are intrinsically associated with the enjoyment and use of land. Easement or servitude remains a veritable example of these kind of rights. They also do have the potential of third party consequences.
For instance, easement as a legal proprietary interest in the servient land which would endure in favour of successive owners of the dominant land and would bind successors in title of the servient land. This means that easements have third party consequences as a proprietary interest as opposed to a contractual or personal interest.
The justification is the inexorable recognition that sometimes people need to use other people’s land and that it will be necessary to set down rules determining how rights are legitimately acquired. Another was that the law had to be inherently flexible. In some cases, over a long period of time, rights ought to be acquired outside the formal process.
Prescription in English law was never based solely on a long period of use, enjoyment or benefit of property, or ‘user’.
The essence of the English law was, and is, the acquiescence of the servient owner according to E H Burn who has observed:
Why should long user confer a right protected by the courts? The answer is, that if the servient owner has allowed somebody to exercise an easement over his land for a considerable period and if he has omitted to prevent such exercise when he might very well have done so, it is only reasonable to conclude that the privilege has been rightfully enjoyed, for otherwise some attempt to interfere with it would long ago have been made by any owner who possessed even a modicum of common sense.
Note further that the onus is on the claimant to prove that they acquired a prescriptive easement. They must demonstrate that the user was of right, namely that the servient owner acquiesced in the use for the period prescribed by law.
Clement Chigbo, lawyer and chartered arbitrator practices as a registered associate with the law firm of CF Butler & Associates, Nassau, The Bahamas. He is currently a tutor and doctoral/PhD candidate at the university of Aberdeen, U.K. Opinions, comments and criticisms and suggestions on his articles are welcome. He may be contacted at lawscholar2006@yahoo.com, clemsweiss@hotmail.com
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.
Last week His Lordship, Justice Neville Adderely of the Supreme Court made a ruling which may make a substantial impact in the IBC incorporation practice in The Bahamas. As seen in the article below it was ordered that the Registrar General cannot, under existing legislation restore International Business Companies (IBCs) previously struck-off for non-payment of fees. It was a judgment order based on public interests, particularly within the financial service industry and general business community. According to His Lordship, “I find that since the repeal of the 1989 IBC Act, the Registrar ceased to have the power to restore a company that had been struck-off the Register for non-payment of prescribed fees and any such purported restorations by him are null and void.”
Clearly the intention of Justice Adderely is to correct the absurdity in the IBC legislation as the present IBC Act allows for the Company, member, liquidator, or creditor of IBCs struck off for non – payment of fees to apply to the court for reinstatement, the provision of which depends on whether the court determines that the reinstatement is fair and reasonable for the name of the company to be restored to the register (S166 (2)). However the IBC Act also allows applications to the Registrar for reinstatement of struck – off IBCs after the period of 5 years upon repayment of outstanding fees (S166(3)).
Perhaps these subsections give ground to the defectiveness within the legislation as it promotes mischief within a jurisdiction known for holding corporate vehicles used criminal malice. If the legislation provides for the judicial court to determine whether reinstatement of a corporate entity is fair and reasonable, certainly the authority of the court should stand for IBCs struck-off for 5 years.
We hope to have this ruling available as soon as we get our hands on the hard copy. In the meantime, enjoy…
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No restoration for non-paying IBCs
Published On: Friday, December 04, 2009
By NEIL HARTNELL
Tribune Business Editor
A Supreme Court judge has stayed for four months his ruling that the Registrar General cannot, under existing legislation restore International Business Companies (IBCs) previously struck-off for non-payment of fees, due to its impact on the financial services industry and business community.
Justice Neville Adderley explained that he was staying his ruling for four months to give the Government, and Parliament, time “to take such action” with respect to the Registrar’s ability to restore IBCs in such a position.
His ruling effectively means that all IBCs reinstated since the IBCs Act 2000 was passed, after being struck off for non-payment of fees, should not now be incorporated. Given that such restorations have been going on for nine years, Justice Adderley’s findings could cause potential chaos for the financial services industry and its clients.
He reached his decision in ruling that a writ and statement of claim filed against BDO Mann Judd, its senior partner and accountant Clifford Culmer, and Callender’s & Co attorney and partner, Michael Scott, be struck out. A $208,850 default judgment against Mr. Culmer and BDO Mann Judd was also set aside.
The action had been brought by the Tenesheles trust and the Hawthorne Sterling Family of Funds, the former having owned the latter, which was a group of 35 underlying mutual funds.
“The primary claim is that the defendants wrongfully induced the Securities Commission of the Bahamas to place the underlying 35 companies which comprise the Hawthorne Sterling Family of Funds into a ‘protective liquidation’,” Justice Adderley recalled.
“This liquidation, according to the plaintiffs, was carried out by the defendants in such a way that it stripped the Fund Companies of their monetary assets, which primarily went by way of payment fees to the defendants, their servants and agents.”
The Hawthorne Sterling group has a much more interesting history than Justice Neville Adderley recorded in his judgment, its mastermind, Ian Renert, having seen the Securities & Exchange Commission (SEC) obtain a 2004 default judgment against him.
The US regulator had accused Renert of using Hawthorne Sterling and its funds to conduct a “fraudulent” $22 million offering of shares in the fund entities.
Justice Adderley noted that the Hawthorne Sterling Family of Funds was struck off the IBCs register for non-payment of fees on August 31, 2002. The company commenced its action on April 7, 2004, three months before it was returned to the register on June 7, 2004.
“However, the IBC Act 2000 contained no express provision, nor does it contain one now, for the Registrar to restore a company to the register if struck-off for non-payment of fees,” Justice Adderley recalled.
Parliament
While agreeing that Parliament had amended several “absurdities” in the IBC Act 2000 over the years, Justice Adderley said there was nothing “implied” in that legislation that allowed the Registrar General, acting as the Registrar of Companies, to restore an IBC after it was struck-off for non-payment of fees.
The Supreme Court’s job, Justice Adderley added, was to ascertain Parliament’s intention in passing a law based on the words in the statute, “not substitute its will for that of the legislation”
As a result, Justice Adderley said Hawthorne Sterling’s restoration was “a nullity”, as the Registrar had no power to do so. This meant Hawthorne Sterling had no power to sue or bring the action.
“I find that since the repeal of the 1989 IBC Act, the Registrar ceased to have the power to restore a company that had been struck-off the Register for non-payment of prescribed fees and any such purported restorations by him are null and void,” Justice Adderley ruled.
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
Image taken from http://web.kamune.com/
From its inception during the month of April of this year, the LEX JUSTIS Blog has served as an interactive hub between the Practice, its clients, and those interested in the informative perspectives of the law in The Bahamas. We are grateful to all visitors and well wishers for taking the time out to view our website and are truly humbled in the rising number of visitations we receive each month.
As 2010 tiptoes its way towards us, we remain devoted to keep the wind on the back of our sails in our commitment to provide accessibility to the various aspects of the law in this beautiful archipelago of ours.
The author is back, after a much needed retreat…
Some time has passed since the country has heard of new appointments to the Queen’s Counsel, nevertheless we wish to congratulate all eight of the newly appointed members of Her Majesty’s Counsel on the 27th of October, 2009. Holding the position of Queen’s Counsel (QC) is an honorable compliment for a practicing attorney as the title bestows highly respected accreditation and legal experience recognized throughout Commonwealth nation – states. On a professional level the legal services of a QC are often sought after by the nation’s dominant island corporations and individuals with deep pockets, as they are normally considered to be very good at what they do. Simply put, QCs are the crème de la crème, an elite professional class of their own…
As we have previously mentioned in our previous article (see: http://www.lexjustis.com/blog/?p=1019 ) QCs are appointed by the Governor – General upon recommendation of the Prime Minister after being advised by the Attorney General. However the criteria required qualifying for this honorable appointment is unknown, and this year’s appointment has been criticized either for its political allusions, or for the lack of guidelines for the consideration of a QC appointment as a long and ‘heavy’ list of experienced senior practitioners were not considered.
Nevertheless, as some members of the profession call for its abolition, we will say that the members of the legal profession should have a say in determining which of their own is most deserving. We would also put forth other factors such as legal experience, participation in the nation’s legislative and/or judicial office (as a senator, magistrate judge, registrar, etc,), a display of highly skilled and reputable legal work, and reputable contribution to the development of the country’s legal system. Perhaps someday in the future you will find nominees walking down a red carpet and onto the ceremonial stage receiving their appointments in front of an applauding crowd of voting members of the bar.
One of our local internet news providers, The Bahamas Press, has written on the appointments in this article here: http://www.bahamaspress.com/?p=8441, calling the appointments as part of the ‘UPBIZATION’ of The Bahamas, as those recently appointed hail from the elite ‘White Knight’ law firms…
RESORT DEVELOPMENT IN THE BAHAMAS
(Series 2 of 3)
In the 1950s and 1960s, tourists flocked to the new resorts just west of Nassau at Cable Beachand to Paradise Island in the 1960s and 1970s. With its exclusive environment, Paradise Island soon drew other major investors like Merv Griffin and Donald Trump, whose creative genius made the island of paradise one of the most popular holiday destinations of all time.
Surely, establishing a hotel in The Bahamas can easily be one of the most important milestones of your lifetime. Boasting one of the world most attractive beaches, a stable government, and friendly culture, establishing a Bahamas based resort is a sound asset that will greatly benefit the pockets of its investors in the long term. Coupled with a strong commitment by the Bahamas Government to promote the islands of the archipelago along with incentive driven legislation, The Bahamas continues to be one of the most popular destinations to establish a vacation resort.
In this series we will outline the fundamental aspects of resort development from a legal perspective. Notwithstanding the fundamental requirement to gain the approval of the Bahamas Investment Board and to acquire land needed for the resort, we will cover the relevant law associated with hotel operations along with regulations addressing the minimum standards of the hotel establishment as well as duty incentives offered by the Government of the Bahamas. We do hope that you will find this series helpful in accomplishing your dream of hotel development in paradise.
In the first series we briefly discussed the definition of a Bahamian hotel and outlined the expected fees required through acquiring a hotel license, as well as payment of taxes for each hotel guest. We will now look at the expected physical conditions and safety measures to be upheld by resort operators.
Physical Standards Established by Legislation
Maintenance of interior of hotels
The Hotel Regulations require that the interior part of the structure of every hotel and all contents within (i.e. fixtures and chattels) thereof and all articles used are be kept clean and in good condition, in particular:
The Regulations provide that upholstery of every hotel building including mattresses and all bed accessories (i.e. linen and pillows), rugs and floor coverings, and all shades and blinds are to be kept clean and in good condition. All china, glassware, tableware and other crockery provided for use by hotel guest shall be clean and in good condition, free from any cracks or chips.
Sleeping Rooms
Guest sleeping room are required to be no be less than eight feet in width and eight feet high, the floor area of a sleeping room (excluding all shower space, closet space and the space of any foyer or corridor leading to a sleeping room) must be:
Approval of Renovations to Hotel Building
Should the hotel operator decide to renovate or alter the structure of the hotel building the laws of the Bahamas require written approval of any public officer or authority. Hotel operators must furnish the Board with two copies of any construction plan that is submitted to such officer or authority in support of any application made for the sanction or approval of such alteration.
Maintenance of exterior of hotels
It is mandatory for garbage held for disposal in any hotel location to be kept in a sealed plastic bag and shall be stored in such manner as to prevent the spread of offensive odors or the attraction of insects. Should the hotel decide to maintain a sewage disposal plant, the hotel must keep the garbage plant in good working order.
Mandatory Fire Prevention Policy for Hotel Establishments
Hotel operators have the legal obligation to take all reasonable precautions to prevent fire in the hotel and to ensure that all fire equipment therein in good working order. By law, fire procedures are required to be published in accordance with the guidelines provided by the Commissioner of Police, and must ensure that all employees of the hotel establishment are instructed in the hotel’s fire procedures.
Hotel fire exits must be maintained in order to provide free and unobstructed egress from all parts of the hotel, and no lock or other fastening are allowed to be installed on any such exit which prevents such egress. Fire exit routes in a hotel must be visible in such manner that hotel guests may readily know the direction of escape from any part of the hotel in the event of fire.
Every hotel must be equipped with a fire alarm system which shall be kept in good working order and tested no less than once per month, and be recorded in the logbook of the hotel. Incidents of fires occurring within the hotel establishment are to be recorded in a hotel logbook, and by law, must be signed by supervisors and other individuals in charge of the hotel operations.
All changes and amendments to a hotel’s fire procedures, as well as to the location fire exits, fire-fighting equipment must receive approval of the Commissioner of Police. Hotel legislation also provides that the duty of hotel operators to notify the senior officer of police or the local fire brigade for the district in which the hotel is situated. Hotel legislation also prohibits tampering with or removing any fire equipment in a hotel, unless there is a lawful excuse.