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Attorneys request meeting over land licence law

Housing Minister David Burch

Attorneys have asked Housing Minister David Burch for a meeting about a controversial land licence law they claim is causing hardship to many Bermudian families.

The deadline for compliance with the Bermuda Immigration and Protection Amendment Act 2007 is just a week away — but lawyers say it is so badly worded they are struggling to give advice to clients about it.

Junior Housing Minister Walter Roban told the House of Assembly on Friday that changes to the legislation were being considered but gave no details of any possible amendments or when they would be tabled.

Bermuda Bar Council member Harry Kessaram told The Royal Gazette yesterday that the Bar had been given no indication of how the law might be altered.

"We have asked for a meeting with the Minister but have yet to have one set up," he said.

"It's pretty clear that nothing is going to be done or representations made [by lawyers] prior to June 22.

"Nobody knows what Government is going to do — it's just a wait and see. But there are a whole host of problems that need to be addressed."

The Act — designed to restrict the amount of land owned by foreigners — dictates, among other things, that a $1,375 land licence is required if a non-Bermudian spouse provides financial assistance for the acquisition of land or property.

But Mr. Kessaram, a property law expert, said the Act was vague on what constituted financial assistance, meaning it was difficult to know if a homeowner without a licence was in compliance.

He said that meant, in theory, that a property could be bought in good faith and it could later be discovered that the seller had breached the Act.

"The ultimate sanction is forfeiture of the land," he warned. "It may be a remote possibility but when you are dealing with a property worth hundreds of thousands of dollars, certainty is what is called for."

He claimed the law could "bring a lot of land transactions to a standstill" because lawyers would be unable to certify that title to a property was sound when clients were making mortgage applications. Other concerns of the Bar include:

• That applications for licences have been refused by Government because of a perceived lack of funds in a non-Bermudian applicant's bank account.

• That non-Bermudians have to provide details of their father's nationality and mother's maiden name and nationality on licence application forms. Mr. Kessaram said the questions harked back to an era when Bermudian society was racist and anti-semitic and the state was trying to prevent property falling into the hands of Jewish people and others.

"They still have these stupid questions on the form," he said. "What the hell is that all about?"

• That Bermudian sellers who had to sell properties because of financial difficulty are facing further financial hardship because of lengthy delays by the purchasers (more often than not, a Bermudian married to a non-Bermudian) in obtaining a licence to allow them to buy the property. "I have heard instances of six months or more," said Mr. Kessaram.

• The prospect of homeowners who have obtained a licence being prosecuted after June 22 for any period of time in the last three years when they weren't in compliance with the Act.

Mr. Kessaram added that in cases of non-Bermudian spousal applications, it would greatly help if those in possession of a spousal rights certificate from the Immigration Department could be automatically approved for a land licence.

Sen. Burch's spokeswoman did not respond to questions yesterday.