Government on April 1, 2000 made a significant change to its policy dealing with the purchase of residential property by non-Bermudians.

The new policy allows a non-Bermudian spouse to jointly purchase a house, condominium or an undeveloped piece of land with his or her Bermudian spouse.

Previously, a Bermudian spouse would have to buy the property first and then voluntarily convey it into the joint names of his or her non-Bermudian spouse.

This resulted in the payment of additional legal fees and stamp duty on the value of the half share of the property.

Previously the only exception to this rule concerned properties already in that category of condominiums and houses available to non-Bermudians.

In that case, the parties could hold the property in joint names, subject to the non-Bermudian spouse obtaining what is called an `alien licence'.

As a non-Bermudian spouse, what should you know about the purchase of property in Bermuda with your Bermudian spouse? First, you are not in any way restricted to properties beyond a set Annual Rental Value (ARV) level.

Non-Bermudians, for example, may only acquire houses that have an ARV of $126,000 or more, or condominiums that have an ARV of $28,800 or more.

Couples with one Bermudian spouse face no such limitations.

Secondly, the Government fee for the grant of an alien licence is 22 percent of the value of the property for a house, and 15 percent of the value of the property for a condominium. This adds considerably to the purchase price of any property by a non-Bermudian.

However, if you are a non-Bermudian spouse acquiring with his or her Bermudian spouse, the Government fee for an alien licence issued to acquire the property is currently set at $1,097.

Thirdly, you should be sure to advise your real estate agent that you are a non-Bermudian buying jointly with your Bermudian spouse.

The time for closing, which is traditionally 30 days from the signing of the sale and purchase agreement, will need to be extended by up to eight weeks.

This should provide you with sufficient time to apply for, and hopefully receive, the required alien licence from the Department of Immigration.

The format of the application is set out in statute, and closely follows the form that non-Bermudians must complete before being allowed a licence to buy property.

Your lawyer can provide you with the application form and assist you in completing it.

It requires you to provide your marriage certificate, two references, and a bank reference.

This application form is then sent with the accompanying documentation and a cheque for $1,097 to the Department of Immigration at the Ministry of Labour, Home Affairs & Public Safety.

Government has recognised the necessity for these applications to be dealt with quite promptly and are endeavouring to process the applications within a six-week period.

An alien licence traditionally has conditions, which vary depending upon the circumstances. However, certain conditions will be included on all alien licences to hold property.

For example, an alien licence holder may only use the property as a private residence.

Additional restrictions apply should the property ever become vested solely in the name of the non-Bermudian spouse, his heirs or successors at a time when they do not possess Bermudian status.

Under those circumstances, the property may not be rented out, subdivided for the purpose of conveyance or internally divided to create more dwelling units unless specific permission is obtained from the Minister of Labour, Home Affairs & Public Safety.

*** Attorney Georgina Simpson is a member of the Property Department at Appleby Spurling & Kempe. Copies of Ms Simpson's columns can be obtained on the Appleby Spurling & Kempe web site at www.ask.bm.

*** This column should not be used as a substitute for professional legal advice.

Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.