MODULE ONE BAHAMIAN LAND LAW SELF-ASSESSMENT QUESTIONS

1. Distinguish between real and personal property.

Real property is comprised of freehold interests in land. Personal property is comprised of both
tangible and intangible properties that are not considered freehold interests.

Real property includes land plus the buildings and fixtures permanently attached to it. Real
property taxes are assessed on agricultural, commercial, industrial, residential and utility
property. Personal property is property that is not permanently affixed to land: e.g., equipment,
furniture, tools and computers. Personal property taxes are assessed only on property that is used
in business.

2. Distinguish between ownership and possession.

Ownership involves the absolute rights and legitimate claim to an object. It means to
own the object by the owner. Possession is more the physical control of an object. The
possessor has a better claim to the title of the object than anyone, except the owner
himself.

3. Define freehold and leasehold estates.

Freehold Leasehold
You own the land and everything on it without restriction, You own the dwelling on the land, but
not the land itselfLength of ownership is indefinite. Length of ownership is determined
by least.
4. What are the two types of rights over land?

Property rights include easements and profits. An Easement is right over one piece of land
which attaches to and benefits another piece of land. Profit is a sort of easement. It is a right to
go onto another person’s land and diminish it by taking something away.

Restrictive covenants. A covenant is a promise made in deed. It is really a part of the law of
contract rather than property.

5. What is a legal estate?

A legal estate is a type of right of ownership which gives the owner an entitlement to possess or
occupy the land (e.g. freehold ownership of land).

6. What is a legal interest?

The legal interest in a property refers to the right to possess or use property. It
belongs to the legal owner, ie the person who is registered at the Land Registry on the
title deeds. A legal interest is a right over land which is given to a non-owner but is still
valid against everyone and gives the non—owner a right which is less than actual
possession as in a legal estate

Examples of legal interests:

a) an easement, right or privilege over the land of another person
(b) a charge by way of legal mortgage
(c) a rent charge
(d) a charge imposed on land
(e) a right of entry (e.g. a right to resume possession given to a lessor of a lease)

7. Explain freehold interest.

Owning a freehold interest in a property means you own the building and the land it
stands on outright. the freeholder owes no obligation to a superior tenant in respect of
his/her landholding. (absolute)

8. Explain leasehold interest.

Leasehold interest is a legal right acquired by an individual or corporation to use certain
property for a limited period of time. (a term of years absolute)

9. Define co-ownership.
Interest in land may be owned by more than one person. Where two or more persons hold an
interest in land in possession at the same time, they are known as co-owners in law.

10. Define a joint tenancy.

A person who holds an estate or property jointly with one or more parties, the share of
each passing to the other or others on death.

11. Define a tenancy in common.

A tenancy in common exists where two or more persons own land jointly but undivided shares
meaning that each owner has a share in the land which may be equal or unequal.

12. What are the distinguishing characteristics between the two types of co-ownership?
There are two defining characteristics to tenancies in common, both of which set
tenancies in common apart from joint tenancies: There is no right of survivorship
between tenants in common, and. The only unity which exists between the tenants in
common is the unity of possession.

13. Upon what system of land ownership is Bahamian land law based?
Bahamian land law is based on an unregistered system of land ownership where the freehold
title to land is denoted by possession of title deeds which comprise abstracts of title,
conveyances, mortgages, releases of mortgages, searches, assignments and a schedule of
listed documents. The collection of deeds and title documents must show a chain of title
concluding with the Vendor of the property as the last legal owner of record.

14. Describe the two stage transaction which transfers freehold title to land in the Bahamas.

(1) Agreement/Contract for Sale which binds the Vendor and Purchaser to complete the transfer
under specified terms and conditions outlined in the agreement. This agreement, in and of itself,
does not transfer title to the property. Under the Agreement for Sale, the Vendor must produce
for the Purchaser’s/Purchaser’s attorney inspection an ‘abstract of title’ showing evidence of title
which goes back, as mentioned above, thirty (30) years. Mastering Mortgages The Bahamas
Institute of Financial Services 16 The ’root of title’ may be a conveyance, mortgage, or an
assent (e.g. a signed document transferring legal estate in land from the personal
representative of a deceased person who owned property to the person who has legally
inherited the property under will or the rules of intestacy.

(2) Conveyance which transfers title to the legal estate from the Vendor to the Purchaser. Under
Bahamian legislation, the conveyance must be made by deed.

15. What legislation governs land law in the Bahamas?

Conveyancing and Law of Property Act, 1925,

Law of Property and Conveyancing (Condominium) Act, 1967
International Persons Landholding Act, 1994 (as amended),
Registration of Records Act, 1928 Real Property Tax Act ,1969 (as amended)
Stamp Duty Act, 1925 (as amended), and
Value Added Tax Act and Regulations, 2014 (as amended)_.
Quieting of Title Act, 1959