Homeowners Protection Act – Time To Revisit

In 2017 The Bahamas enacted the Homeowners Protection Act (HPA). The legislation was touted as "groundbreaking" and was designed to provide "meaningful protection to homeowners by ensuring a true and proper discourse" between borrowers and financial institutions (hereinafter 'lenders') ¹. As a result of COVID-19 and its adverse impact on the Bahamian economy, increased litigation under the HPA is expected. The HPA will likely become the epicentre of the mortgage market.

Previous state of law

Prior to the enactment of the HPA, lenders would often require borrowers to waive their protection under the Conveyancing and Law of Property Act (CLPA) as a condition for a mortgage. Consequently, when borrowers became delinquent, lenders could expedite the process to enforce their security with little to no impediments.