By Pinder Commercial Chambers
A development acquisition should be assessed against the project the buyer intends to deliver. The purchase agreement, land rights, approvals programme and financing plan need to support the same use and timetable. A site can be attractive commercially while still carrying unresolved legal dependencies that affect when, or whether, construction can begin.
Define the project before finalising the acquisition
Prepare a concise project description showing the proposed uses, approximate scale, phasing, access and infrastructure needs. Use the current survey boundary and identify land needed for utilities, roads and operational support. The acquisition team should understand which parts of the concept fall within the land being acquired and which depend on additional rights.
Treat a proposed lease, option or neighbouring land arrangement as a separate dependency until it is legally secured. For waterfront projects, investigate the rights needed for seabed occupation, access and marine works. The commercial value of upland ownership should not be calculated on the assumption that every adjoining area is available for use.
Match the legal due diligence to the intended use
Review the seller’s authority, title documents, survey, access rights, easements, restrictive covenants, security interests, occupiers and existing contracts. Ask whether any issue could prevent the proposed development, delay financing or require another party’s consent. A lease review should also examine permitted use, assignment, financing rights, default provisions and the ability to complete the project within the remaining term.
For a non-Bahamian acquisition, determine the applicable permit or registration route under the International Persons Landholding Act. The framework distinguishes transactions requiring a permit from those dealt with by registration. The correct route depends on the purchaser and transaction; the conditions should be resolved before completion. [1]
Build one approvals programme
Prepare a project-specific schedule covering investment approvals where relevant, landholding requirements, planning and subdivision, environmental review, building approvals and operational licences. Record the responsible authority, applicant, submission material, dependencies and conditions for each item. Determine the applicable local arrangements, including any special regime affecting the site.
Check the scope of each approval rather than relying on the word “approved” in correspondence. An investment approval, environmental clearance and building permission answer different questions. Review whether an existing approval covers the buyer, the current design and the proposed phase, and whether a transfer, variation or fresh application is needed.
DEPP publishes environmental clearance and preliminary review applications and directs developers to obtain approved terms of reference for project-specific environmental impact assessments and management plans. Bring the environmental consultant into the design process early enough for findings to influence the layout and budget. [2]
Connect contract protection to the remaining risks
Translate material findings into the acquisition documents. Consider conditions for satisfactory due diligence, required permissions, financing, releases of security and essential third-party rights. Agree responsibility for applications, access for investigations, cooperation obligations, acceptable approval conditions and the consequences of delay or refusal.
Make deposit release, completion and any extension rights consistent with those conditions. Avoid a timetable that requires an unconditional funding commitment while a critical land right or permission remains unresolved. Where early expenditure is commercially necessary, identify who bears that cost if the acquisition does not complete.
Plan the funding and the operational handover
Agree the equity and borrowing structure with the lender and advisers, including security and consent requirements. Assess the exchange control position before moving funds; the Central Bank publishes separate guidance for capital investment, share transactions, loans and approved investment status. [3]
Budget for applicable transaction taxes and fees, infrastructure obligations, professional work and compliance after completion. Check any proposed fiscal concession against its actual legal instrument, scope and conditions. A financial model should identify the cost if a requested concession is unavailable.
A decision pack before committing capital
- A project description and survey-based plan showing the acquisition boundary and additional rights needed.
- A title and transaction report separating matters that can be resolved at closing from risks requiring a commercial decision.
- An approvals schedule identifying the applicant, authority, dependencies, conditions and responsible adviser.
- A funding and cost schedule covering equity, borrowing, exchange control, taxes, infrastructure and contingencies.
- A completion checklist and handover file containing executed documents, approvals, obligations and compliance dates.
The decision pack should let the sponsor and lender answer three questions: what is legally secured, what remains conditional, and what capital is exposed before the conditions are satisfied? That clarity helps the parties negotiate a transaction capable of progressing into a financed development.
Discuss your transaction with PCC
PCC can assist with acquisition structuring, title and contractual due diligence, coordination of legal approvals, financing documents and closing. For an initial discussion, identify the site, intended use, proposed purchaser, transaction structure and target timetable. Detailed records can then be provided through an agreed secure channel.
Contact PCC about a development acquisition
Sources and further reading
[3] Central Bank of The Bahamas — Exchange Control Notes and Guidelines, application categories.
This briefing provides general information as at 10 September 2026. It is not legal or tax advice and does not create an attorney-client relationship. Advice should be obtained on the facts and laws applicable to a particular matter.