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Sea Spray Sales Package

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Interior Design and Furnishing (FFE)

All homes will come fully furnished and outfitted with house wares and a full complement of linens. There will be some basic options and décor themes to choose from, but owners will be encouraged to stay within the guidelines of what is being offer through the program. Ruth Campbell of Ruth Campbell Designs will provide Interior Decorating services for the project. Ruth will provide pattern books and furniture selections for the homes. She will also consult with buyers to help them understand and visualize the options and make selections. The décor and furnishing themes will create a relaxed but elegant Bahamian feel and living experience. It is contemplated that all homes will participate in the Sea Spray Rental Program so in addition to being stylish, all furnishing will be selected with the wear and tear of vacation rentals in mind. There is an allowance built into the home price for the FFE. There will be an escalation clause associated with the allowance as the procurement of the FFE will not happen at contract signing but strategically over the construction period.
As you can image (and probably don’t want to), the process of buying, storing, consolidating, shipping and installing an entire FFE package to Elbow Cay is daunting. Sea Spray will have a dedicated point of contact to communicate with owners during the build process and to facilitate the consolidation, shipping and installation of the FFE packages. Logistic services will be provided by a company called Source Consulting. Source Consulting specializes in consolidating and shipping FFE packages of this nature to luxury developments throughout the Caribbean. Additionally, Sea Spray has negotiated a development agreement with the Bahamian Government that allows us to import all materials associated with building and furnishing these houses on a duty-free basis. This represents a significant savings that is reflected in the purchase prices.
SEa Spray

Amenties

HOMEOWNER’S POOL

As shown on the site plan, there will a common area pool and associated amenities located within the residential portion of Sea Spray. This pool will be for the exclusive use of homeowners, their guests and patrons and renters staying in the one-bedroom villas owned by Sea Spray.

PREFERRED MARINA RIGHTS

- All property owners will be guaranteed a slip for personal use subject to established notice parameters (TBD).
- Owners will pay an “Owners Rate” that is 20% less than the current market rate in place at the time of occupancy.
- Third party renters will not be guaranteed a slip and will pay market rates.

CENTRALIZED UTILITY SERVICES

If you have been on Elbow Cay for more than a day, you probably noticed that the power goes out a lot! Most homes have whole house generators that get used quite a bit. These generators require upkeep, maintenance and fueling.

Sea Spray will provide back-up power to all houses in the development from our centralized generator facility. This eliminates the need for owners to have their own generators. Homeowners will contribute pro-rata to the maintenance cost and fuel usage of the generators through the Homeowners Association dues.

ON-SITE WATER DISTRIBUTION

There is no public water utility on Elbow Cay and all houses rely on rainwater as their primary water source. The houses at Sea Spray, like other houses on-island will be designed to collect and store rainwater. However, there are high use-age periods and periods of little to no rain that will require sourcing water from a 3rd party. As part of the overall infrastructure at Sea Spray, we have installed large commercial water makers and a high-capacity storage and distribution system with enough capacity to service the commercial and residential water needs at Sea Spray. Individual house cisterns will be equipped with afloat switch. When supplemental water is required, we will have the ability to distribute fresh water to homeowners’ cisterns on a metered basis. There will be a per gallon fee at competitive rates.

PROGRAM PARAMETERS AND BENETITS

HOTEL ENCOURAGEMENT ACT (HEA)

As mentioned above, Sea Spray has entered into a Development Agreement with the Bahamian Government under a program called the Hotel Encouragement Act (HEA). As tourism is the primary driver of the Bahamian Economy, the HEA was established to encourage developers to create resort environments that provide rental opportunities and foster other economic activities in the Bahamas. The government assesses at VAT tax on sales and rental income generated by the development. The HEA incentivizes developers, resort owners and homeowners by providing the following benefits:
  • All building materials, appliances, furnishing, FFE and landscaping materials can be imported into the county on a duty-free basis. This takes considerable management and coordination with customs brokers and logistics providers, but we have assembled a team that now has a over a year’s worth of experience running the program. We still pay a 10% VAT tax on all items we import, but the savings on duty is significant as duty on finished goods and other items can exceed 50%. These savings are reflected in the house prices.
  • The government also provides real estate tax incentives to homeowners participating in the program. This will essentially eliminate property taxes on homes in Sea Spray for a period of 20 years. The basic mechanics of this are as follows; there is a set minimum VAT tax target for what a house in the program should generate. The VAT target is 75% of what the annual property taxes on your home would be, under normal market conditions. If the target is not reached, homeowners will pay the difference between the actual VAT realized and the VAT target as real estate taxes to the government. As a quick refresher, VAT tax is a 10% consumer tax charged to renters on top of the weekly rental rate. VAT will be collected by the Sea Spray management and paid directly to the Inland Revenue Department on the homeowners’ behalf. Accounting documentation will be provided by the management company to ensure VAT compliance.
To qualify for these financial benefits homeowners are required to comply with rental availability parameters set forth in the HEA. Those parameters are as follows:
  • All homes are required to be made available for rent 9 months out of the year in the aggregate.
  • Homeowners cannot occupy the homes for more than 90 consecutive days
To clarify a few quick points:
  • Homeowner usage is not confined to a contiguous 90-day period.
  • Owners can block any dates they choose.
  • There is also flexibility during the periods that the house is made available for rent.
  • As an example, if an owner calls during a period the house is available for rent and wishes to use it, and it is not booked, then the owner can use it. In this circumstance, if the house is booked, the management company will use best efforts to transfer the booking to comparable unit prior to check in, if the renter is agreeable.
  • This won’t answer all the questions on this topic, but it’s a start.
Sea Spray Residential

Rental Management Services

What follows is a bullet point summary of the services that will be provided under the Rental Management Services Agreement. A draft copy of the Agreement will be made available upon executing a Reservation Agreement.
RENTAL MAGEMENT AGREEMENT TERMS:
  • Exclusive authority to rent the residences.
  • Owners are prohibited from renting units outside of the Sea Spray Rental Program
  • The manager shall receive 50% of the adjusted gross unit rental (AGR). AGR shall mean gross unit rental revenue less credit card fees and travel agent commissions.
RENTAL MAGEMENT SERVICES:
  • Market and rent the units.
  • Establish rental rates
  • Provide and manage a reservation and property management software system.
  • Provide check-in and check-out services
  • Provide accounting services and collect and administer rental income.
  • Collect from all patrons, all appropriate taxes and service charges applicable to the rental of the unit and remit to the appropriate party.
  • Pay monthly expenses on behalf of the unit owner to include: POA Dues, Utility costs, Taxes, Insurance premiums, Other expenses as incurred from time to time.
  • Provide the owner with monthly and annual accounting statements.
  • Provide housekeeping and linen services:
  • Weekly cleaning service/rental turnover cleaning and service (included in rental management fee).
  • Additional housecleaning services at the request of the owner (paid by owner). (Subject to an annually published fee schedule).
  • Unit inspection at the beginning and end of each rental.
  • Bi-annual deep cleans at the expense of the owner. (Subject to an annually published fee schedule).
  • Manage and maintain unit FFE on behalf of the unit owner.
  • Collect and administer and FFE accrual for each unit.
  • Manage the inventory of the unit FFE.
  • Replace FFE per management agreement parameters or at the direction of the owner.
  • Ensure quality and continuity of FFE amongst the units.
Sea Spray Residential

Property Management Services

What follows is a bullet point summary of the services that will be provided under the Management Services Agreement. A draft copy of the Agreement will be made available upon executing a Reservation Agreement.
  • Interior inspections of the units and grounds
  • Coordinating pest control services (Monthly and additional services as needed)
  • Exterior window cleaning
  • Coordinate bi-annual pressure washing of the units
  • Coordinate and oversee pool cleaning and maintenance for units with pools
  • Mechanical equipment checks including air conditioning, hot water equipment and other mechanical equipment
  • Inspection of appliances
  • Inspection of fans, gaskets, doors, louvers, windows and screens
  • Coordinate unit maintenance and repairs as required
  • Sea Spray Management will also administer all functions and services associated with the Sea Spray Homeowners Association
Sea Spray Residential

PROPERTY OWNERS ASSOCIATION (HOA)

Homes at Sea Spray will be part of a to-be-formed Homeowners Association (HOA). What follows are the basic parameters and functions of the HOA. A draft of the Master Declaration of Covenants, Conditions, Easements and Restrictions (Master Declaration) will be provided upon executing a Reservation Agreement.
The HOA shall govern only the portion/portions of the property identified as the Residential Property. This will include the following:
  • All residential lots.
  • All internal roads, pathways and easements servicing the lots.
  • The public beach access.
  • The common area pool and amenities
  • All utilities servicing the lots including septic tanks.
The HOA will have rules that govern the following aspects of the residential property:
  • Aesthetics.
  • Maintenance.
  • Residences
  • Common area
  • Roads
  • Utilities
  • Amenities
  • Landscaping
  • Irrigation
  • Transfers and Sales
  • Insurance requirements
  • Coverage limits
  • Repair and rebuild criteria after a casualty loss or damage
  • Personal use
  • No continuous owner occupation for a period of greater than 90 days
  • Made available for rent 9 months out of the year
  • MandatoryparticipationintheSeaSpray rental and property management programs
  • Rental parameters
  • Use
  • Parking
  • Storage (Boats, golf carts, personal property, etc...)
  • POA budget
  • Creating the Annual budget
  • Proration formulas for dues and assessments
  • Assessments
  • General Administration and Accounting
  • Establishing and administeringreplacement reserves
  • The HOA will be financially responsible for the following
  • Procuring All Risk and Liability Insurance for the HOA covering the common areas, common amenities and utilities
  • All common area and individual lot landscaping
  • All common area and individual lot irrigation
  • Maintenance and upkeep of the internal roads, pathways, easements, the public beach access, utility lines, septic systems, irrigation, common area amenities
  • Common area utilities
  • Pro-rata portion of the maintenance and fuel for the central generators. (note this cost will be shared by the entire development)
  • Projected Monthly HOA fees by unit type (note his will be reduced by the contribution by the development towards the maintenance of the pool and beach access)
  • OceanfrontResidences: $2000/month
  • Marina View Cottage-A: $1100/month
  • Marina View Cottage-B: $1200/month
Sea Spray Residential

SALES PROCESS AND ECONOMIC DETAILS

The first phase of the sales process is initial outreach to “Friends & Family.” This group will have the first opportunity to review the Sales Packet.
The Sale Process
Upon receiving the Sales Packet and the Reservation Agreement, “Friends & Family” prospects will have one week to execute the Reservation Agreement and make the reservation deposit.
  • Reservation deposits
  • Oceanfront Residences: $100,000
  • Marina View Cottages: $60,000
  • Reservation Deposits are Fully Refundable until the Purchase Agreement is signed
  • Upon receiving the deposit, we will share drafts of the following documents:
  • Draft Purchase Agreement
  • Draft Master Declaration of the HOA
  • Draft Management and Rental Services Agreement
  • Slip license agreement
  • Purchaser & Seller will have 30 days to finalize and sign the Purchase Agreement
  • The Reservation Period can be extended by 30 days upon the mutual agreement of the parties
  • During the 30-day review period, the Buyer will have the time to review following
  • The documents governing the property and the purchase of the residence
  • Legal options and ownership structures
  • Financing Options
  • Clarify any terms and conditions related to the purchase
  • Either party can terminate the agreement until the Purchase Agreement is signed and the deposit will be returned to the Buyer
  • Creating the Annual budget
  • Proration formulas for dues and assessments
  • Assessments
  • General Administration and Accounting
  • Establishing and administeringreplacement reserves
Installment Sale Parameters
  • Upon signing the contract, the initial installment payment will be due
  • Installment payments will be non-refundable except in the case of a Seller Default
  • Contract installment Schedule
  • 30% due at contract execution (the Reservation deposit will be applied to this installment)
  • 20% due at construction start
  • 20% due when the structure is dried in (roof complete, windows installed)
  • 20% due when ready for tile installation
  • 10% due at completion and conveyance
Bahamian Lender Options
  • NOTE: US banks will not provide mortgages for Bahamian real estate
  • We have reviewed our program extensively with RBC and they are willing to do a 70% loan-to-cost Construction-Perm loan that conforms with our installment sale milestones. We can provide a contact at RBC for those interested in pursuing this as an option.
  • If buyers have other Bahamian lenders they want to consider we can work with them as well. Installment sales for new construction are not uncommon in the Bahamas.
Legal Representation
  • Buyers can choose their own attorney or they can use the firm that represents Sea Spray, Higgs & Johnson
  • Buyers will be responsible for their own Legal and Closing Fees
  • If Buyers choose Higgs & Johnson, there is a pre-negotiated fee of 0.75% of the purchase price for Buyer side legal. This represents a negotiated bulk discount.
Other Closing Cost
  • The Bahamian Government Assesses a 10% Vat tax on all Real Estate transactions
  • It is customary that Buyers and Sellers split this cost (5% Buyer;5% Seller), and that is what this pricing structure contemplates
  • VAT will be due and payable when the installment payments are made
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Reach Out

Ready to turn your dream of coastal living into reality? Our dedicated sales team is here to assist you every step of the way! Whether you have questions about available properties, pricing, or the buying process, we’re just a click away. Reach out to us today and let’s start your journey to finding your perfect home at Sea Spray!
Wins 2023 Boater's Choice Award

Sea Spray Resort & Marina

Sea Spray Resort & Marina has been awarded the 2023 Boater’s  Choice Award. This prestigious accolade highlights the marina’s commitment to providing guests with exceptional experiences.

Boaters Choice 2023 - Docka
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Sea Spray Resort and Marina is a luxurious protected marina on Elbow Cay in the middle of the Abacos.

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