Understanding the Costs Involved in Selling
Selling a property in Bermuda involves several professional and government-related expenses. Understanding these in advance helps you calculate your net costs and plan your next steps confidently.
At Cranfields Property Bermuda Ltd., we aim to make this process as transparent and informed as possible.
1. Legal Fees
Each party engages their own attorney to manage the conveyance process. In Bermuda, legal fees are typically shared equally between buyer and seller.
Your attorney will assist with reviewing or drafting the Sale and Purchase Agreement (SPA), title searches, document processing, and closing.
Estimated Cost: Generally 1%–1.5% of the sale price in total, with the seller usually responsible for half.
2. Real Estate Agent Commission
The standard agent’s commission is 5% of the final sale price, paid by the seller at closing. This fee is agreed upon at the time of listing and deducted from the sale proceeds by your attorney.
Example: On a $1,000,000 sale, the commission would be $50,000.
3. Government Stamp Duty
Stamp Duty is charged on the full purchase price of the property and calculated on a sliding scale. Typically, both the stamp duty and legal fees are shared equally between the parties.
The sliding scale applies progressively across price brackets. For example:
- First $100,000: 2.1%
- $100,001–$500,000: 3.15%
- Amounts above $500,000: 4.2% and higher
Your attorney will calculate your exact share based on the purchase price and contract terms.
4. Disbursements & Miscellaneous Costs
These include out-of-pocket expenses by your attorney, such as:
- Title and planning searches
- Courier fees
- Document registration
Estimated Range: $300–$800, depending on the transaction.
5. Boundary Staking (Recommended)
Arranging boundary staking prior to going to contract is strongly advised. It helps confirm property limits and avoids delays later in the process.
We can provide a list of qualified land surveyors to assist with this.
Cost Range: From $2,000, depending on lot size and complexity.
6. Mortgage Discharge (If Applicable)
If your property is mortgaged, your attorney will coordinate with your lender to discharge the loan at closing. The balance is paid directly to the bank from the sale proceeds.
7. Apportioned Costs at Closing
Certain ongoing charges may be prorated between buyer and seller based on the closing date:
- Land Tax
- Condominium maintenance fees
- Insurance premiums (if prepaid)
These adjustments are included in your final closing statement.
8. Closing Statement
Your attorney will prepare a Closing Statement, which outlines:
- Final sale price
- Deductions (agent commission, legal fees, stamp duty, mortgage payoff, etc.)
- Your net proceeds, which are transferred to your bank account following completion
Example Summary Based on a $1,000,000 Sale
| Item | Amount (BMD) | Notes |
| Sale Price | $1,000,000 | Gross purchase amount |
| Real Estate Agent Commission (5%) | $50,000 | Standard rate payable by the seller |
| Stamp Duty & Legal Fees (Seller’s Share) | $24,312.50 | Half of the total fees and duties |
| Estimated Legal Base Fee (Seller’s Share) | $12,375.00 | Half of the standard conveyance fee |
| Total Estimated Costs | $86,687.50 | Includes commission, stamp duty, and legal fees |
| Estimated Net Proceeds | $913,312.50 | Final amount paid to seller at closing |
At Cranfields Property Bermuda Ltd., we guide sellers through every aspect of the sales process—from pricing to proceeds—with care, clarity, and over 25 years of local expertise.
*This information is for general guidance. Always consult with your attorney for exact figures and legal obligations related to your property sale.*
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