Bermuda Real Estate Exam study guide
Bermuda Real Estate Exam · Work through your exam, one topic at a time.
The Bermuda Real Estate Salesperson Licensing Examination is the assessment that prospective salespeople in Bermuda's property market are expected to clear before they can hold themselves out as licensed to deal in real estate. It is aimed at new entrants preparing to work under a licensed brokerage, as well as career changers and administrative staff stepping into a sales role. The Bermuda Real Estate Exam study guide has 9 sections and about 2,681 words.
01Bermuda Real Estate Law and Regulatory Framework
Bermuda real estate practice is built on a small set of statutes: the Real Estate Brokers Licensing Act , which creates the licensing regime administered by the Bermuda Real Estate Council, the Land Title Registration Act , which governs the registered title system, the Conveyancing Act , which supplies default rules for deeds, covenants and completion, and the Bermuda Immigration and Protection Act together with the Real Estate Acquisition and Holding Act , which control who may acquire property and how much. Candidates must know that a licence is required to trade in real estate for reward, that a salesperson must act under a licensed broker, and that licensing status, continuing education and trust-account handling are all disciplinary matters.
344 words, about 2 min02Agency Relationships and Fiduciary Duties
Agency in Bermuda arises by express appointment, by implication from conduct, or by ratification. The core fiduciary duties are loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, accounting for money and property, and reasonable care and skill .
302 words, about 2 min03Listing, Buyer Representation, and Sales Contracts
A listing agreement should state the parties, the property, the price, the term, the commission, the type of authority ( exclusive right to sell, exclusive agency, or open listing ) and any termination provisions. Bermuda practice uses written memoranda of agreement or offer-and-acceptance documents; whichever form is used, the essentials are parties, property description, price, and signature.
309 words, about 2 min04Property Ownership, Tenure, and Conveyancing in Bermuda
Bermuda land is held under a system inherited from English law, with freehold (fee simple) and leasehold estates, plus Crown land and leases from the Crown. Candidates must understand the difference between ownership of the land and ownership of a building , condominium-style strata or unit title , and the rights and obligations created by easements, restrictive covenants and party-wall arrangements.
311 words, about 2 min05Financing, Mortgages, and Settlement
Bermuda mortgage lending is dominated by local banks, with loans secured by a legal charge or mortgage over the property. Candidates must understand loan-to-value ratios, amortisation, fixed versus variable rates, the mortgage deed's remedies ( power of sale, possession, foreclosure ) and the borrower's equity of redemption.
299 words, about 1 min06Valuation, Pricing, and Market Analysis
Candidates must know the sales comparison approach (most reliable for residential), the income approach (capitalisation of net operating income, used for investment and commercial property), and the cost approach (replacement cost less depreciation plus land value, used for special-purpose property). Key concepts include market value , highest and best use, comparables adjustment, gross rent multiplier, and capitalisation rate.
274 words, about 1 min07Land Use, Planning, and Environmental Controls
Development in Bermuda is controlled under the Development and Planning Act and the Bermuda Plan , which sets out zones, permitted uses, density and design policies. Candidates must understand development permission , the difference between permitted development and development requiring approval, the role of the Development Applications Board, and the process for subdivision, change of use, and variances .
267 words, about 1 min08Taxation, Fees, and Government Charges
Bermuda has no capital gains or inheritance tax, but property transactions attract stamp duty on the transfer deed, calculated on the consideration, with rates that may differ for Bermudian and non-Bermudian purchasers and for residential versus commercial property. Candidates must know who bears stamp duty, the filing and payment deadlines, and the consequences of understating consideration.
283 words, about 1 min09Ethics, Fair Dealing, and Anti-Money Laundering Compliance
Ethical practice requires honesty, fairness, confidentiality, competence and disclosure of conflicts . Candidates must know the anti-money-laundering framework: customer due diligence , identification and verification of clients and beneficial owners, enhanced due diligence for politically exposed persons and higher-risk situations, ongoing monitoring, suspicious activity reporting to the relevant authority, and record-keeping.
292 words, about 1 min