Closing Costs
You may encounter prices listed as 'gross' or 'net'. The 'gross' price is the historical standard in Bermuda and implies that the vendor will pay the agents' commission plus half of the stamp duty and half of the conveyancing cost. The purchaser pays the other half of the stamp duty and conveyancing cost. Some vendors prefer to stipulate in their pricing that the purchaser pay the agent(s) and/or all of the stamp duty and conveyancing cost. These variations are referred to as 'net' (or sometimes 'net net').
However, the cost associated with the transfer of title (legal fees and stamp duty) are normally split between the seller and purchaser. This can also be a point for negotiation. Discuss this with your agent.
Stamp Duties are charged on a sliding scale as follows:
| Tier | Rate | Full Amount |
| First $100,000 | 2% | 2,000 |
| Next $400,000 | 3% | 12,000 |
| Next $500,000 | 4% | 20,000 |
| Next $500,000 | 6% | 30,000 |
| Over $1.5 million | 7% |
In effect, stamp duty amounts to $64,000 plus 7% of everything over $1.5 million.
Stamp duty is normally shared equally between buyer and seller, though the division may be negotiated.
