The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamas-based title services provider yesterday described title insurance as”the way of the future” for this nation, suggesting it could “serve as a precursor” for moving to a Registered Land system.

Lionel Haven, chief operating officer at Computitle, told Tribune Business that title insurance as a concept was starting to gain traction with Bahamian real estate buyers, the main users currently being foreign second homeowners who know the product in their home markets.

“It’s something that for all intents and purpose we see as the way of the future,” Mr Haven told Tribune Business of title insurance.

“It expedites the process for the banks. Any bank into mortgages is looking for insurance against, to cover, their loan. Any bank will look for that, and it can also serve as a precursor for a Registered Land system.”

Title insurance is just as it sounds, providing cover for real estate purchasers and mortgage lenders should title to the subject property ultimately prove defective.

While it is not a substitute for title searches by attorneys, it provides reassurance to investors, and has started to gain traction among local real estate buyers in recent years.

Mr Haven, whose company provides title insurance in addition to its information database and research services, said the product needed greater promotion to encourage increased use.

“The take-up on it has to do with its marketing,” Mr Haven added. 
“There’s an interest in it.

“The interest usually comes from buyers of second homes. They’re very familiar with it, and it’s something they’re going to expect. But it’s something that’s started to get its foot on the ground in the Bahamas. It gives insurance to an investment.”

Transitioning to a Registered Land system, where all land parcels, their ownership and charges over them are recorded on one, central database, and the Government is responsible for the accuracy and issuing of Certificates of Title, has been talked about in the Bahamas for numerous years.

The former Ingraham administration had developed a draft Bill to enact a statutory Registered Land regime, but it never made it to Parliament, and does not appear to be figuring as a legislative priority for the Christie administration.

But, with many Bahamas-based commercial banks owned by overseas institutions in countries with Registered Land systems, Mr Haven questioned how long the Bahamas would be able to resist making the transition.

“As it picks up speed in other jurisdictions, the Bahamas is not too far down the line,” Mr Haven added.

But, noting that the UK had moved to Registered Land in the early 1900s and still not completed the switch, he acknowledged that the transition would take time for the Bahamas, too.

“We’ve got a lot of land, and it really requires a re-surveying of the entire Bahamas. That will be a number of years in development,” Mr Haven told Tribune Business.

Who did this surveying, and whether the Government would be responsible for issuing Certificates of Title, were among the issues that needed to be resolved in any Registered Land system transition.

“It will definitely be beneficial once it is in place,” Mr Haven told Tribune Business of a Registered Land structure. “Will we see it in our lifetime? Who knows? If it’s not done, at least commence the journey of 1,000 miles with a significant step. Let’s get the process going.”