The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Real Estate Association’s (BREA) president is standing by his assessment that the Canadian government’s property deals warning was “pretty harsh”, despite being told that the advisory was a year in the making.

A letter written to Franon Wilson by Dr Terry Swaine, one of the homeowners at the $52 million Oceania Heights development, the controversial project that appears to have sparked the Canadian government’s warning, urged him and BREA to not “close their eyes” to the problem.

In his letter, which was copied to Tribune Business and a host of other Oceania property owners, Dr Swaine warned that “the Bahamas needs to clean up its act” and that the law needed to be changed to prevent Bahamian attorneys from representing both parties in the same transaction.

Responding to Mr Wilson’s comments in Tribune Business last Friday, which described the Canadian investment warning as an overreaction and “rush to judgment”, Dr Swaine disputed his assertion that 99.9 per cent of Bahamian property deals occurred with no problems.

“You say 99 per cent of transactions are fine; I say: ‘Look again’,” Dr Swaine wrote.

“You said in your article that the Canadian government has jumped to conclusions. In fact, they have been monitoring the situation for the last year, and the Canadian High Commissioner to the Caribbean, Mr Hallihan, has been active in advancing our case to the Bahamian authorities. Regrettably, our government has come to this conclusion after considering the facts. It was not a hasty decision as you imply.”

Confirming that Oceania homeowners had been lobbying US Senators to get Washington to issue a similar warning, Dr Swaine told Mr Wilson: “It would behoove you and your organisation to get involved with this, as the Americans are about to follow the Canadian lead.

“The Bahamas needs to clean up its act, and you are part of the problem by closing your eyes to all of the above. It should start with a law that would not allow a lawyer to represent both sides in a real estate transaction.”

Dr Swaine alleged that Oceania homeowners had reported the developers to BREA for selling real estate without the required licence, but claimed the organisation did nothing about it.

Tribune Business understands, though, that Oceania through attorney Anthony Thompson did apply to BREA for the required licences. Further information was sought from the developers, but no replies were received to BREA’s questions, and there was no further follow-up by either side.

Responding to Dr Swaine’s letter, Mr Wilson said of the Canadian warning: “The good news is that they [the Canadian government] aren’t telling people to stop buying Bahamian real estate.”

Reiterating that all property purchases in this nation should be handled through licensed BREA members and qualified attorneys, Mr Wilson added that he found it “hard to believe” the Canadian government’s investment advisory had resulted from problems at just one real estate project.

“To beat everyone with the same stick because of one development, that’s pretty harsh,” Mr Wilson told Tribune Business.

“When you look at all the other developments where people from throughout the world are living, such as Lyford Cay and the Ocean Club, with no problem, that [the Canadian advisory] to me, is still pretty harsh.”