The Transaction Process when Buying a Property
Once you've found the perfect property and your offer has been accepted, the purchase process typically takes a minimum of six weeks to complete, depending on how quickly conditions are satisfied and what’s agreed upon between buyer and seller.
Here’s a step-by-step guide to what happens next:
Step 1: Legal Representation
• The vendor (seller) contacts their attorney.
• The purchaser (you) contacts your chosen attorney and asks them to act on your behalf.
Step 2: Financing & Deposit
• The purchaser contacts their bank to request the approval of a mortgage.
• The 10% deposit is arranged and made ready to be paid upon signing the contract.
Step 3: Drafting the Sale & Purchase Agreement (SPA)
• The Listing Agent prepares a draft Sale and Purchase Agreement (SPA).
• This draft SPA is reviewed by both attorneys, who consult with their respective clients.
• Any necessary amendments are made and agreed upon by both parties.
Step 4: Signing the Contract
• Once the final version of the SPA is approved:
o The Purchaser signs the contract (SPA) and pays the 10% deposit, securing the deal.
o The Vendor signs shortly after.
• At this stage, a legally binding contract is in place.
Step 5: Fulfilling Conditions
• In the following weeks, all conditions of the contract must be satisfied:
o The purchaser confirms financing, with updates provided via their attorney.
o The vendor arranges any necessary items such as boundary staking or ensuring vacant possession, with updates provided through their attorney.
Step 6: Legal Searches
• The Purchaser’s attorney conducts the Conveyance and Planning Search to confirm title, encumbrances, zoning, and other legal aspects of the property as well as registering the property with The Land Title and Registration Office (LTRO).
Step 7: Closing the Sale
• The sale closes on the date specified in the SPA, assuming all conditions have been met.
• On closing:
o The balance of the purchase payment (purchase price minus deposit) is made by bank transfer to the Purchaser’s attorney.
o Apportioned land tax, maintenance fees (condominiums) and any agreed adjustments are settled.
o Keys and ownership are formally transferred.
At Cranfields Property Bermuda Ltd., we’re committed to making this process smooth and stress-free, with clear communication and experienced guidance at every stage.
Here’s a step-by-step guide to what happens next:
Step 1: Legal Representation
• The vendor (seller) contacts their attorney.
• The purchaser (you) contacts your chosen attorney and asks them to act on your behalf.
Step 2: Financing & Deposit
• The purchaser contacts their bank to request the approval of a mortgage.
• The 10% deposit is arranged and made ready to be paid upon signing the contract.
Step 3: Drafting the Sale & Purchase Agreement (SPA)
• The Listing Agent prepares a draft Sale and Purchase Agreement (SPA).
• This draft SPA is reviewed by both attorneys, who consult with their respective clients.
• Any necessary amendments are made and agreed upon by both parties.
Step 4: Signing the Contract
• Once the final version of the SPA is approved:
o The Purchaser signs the contract (SPA) and pays the 10% deposit, securing the deal.
o The Vendor signs shortly after.
• At this stage, a legally binding contract is in place.
Step 5: Fulfilling Conditions
• In the following weeks, all conditions of the contract must be satisfied:
o The purchaser confirms financing, with updates provided via their attorney.
o The vendor arranges any necessary items such as boundary staking or ensuring vacant possession, with updates provided through their attorney.
Step 6: Legal Searches
• The Purchaser’s attorney conducts the Conveyance and Planning Search to confirm title, encumbrances, zoning, and other legal aspects of the property as well as registering the property with The Land Title and Registration Office (LTRO).
Step 7: Closing the Sale
• The sale closes on the date specified in the SPA, assuming all conditions have been met.
• On closing:
o The balance of the purchase payment (purchase price minus deposit) is made by bank transfer to the Purchaser’s attorney.
o Apportioned land tax, maintenance fees (condominiums) and any agreed adjustments are settled.
o Keys and ownership are formally transferred.
At Cranfields Property Bermuda Ltd., we’re committed to making this process smooth and stress-free, with clear communication and experienced guidance at every stage.
