🏗 Building envelope
The building envelope is the part of the lot left after taking away the setbacks. Front and rear setbacks come off the depth; the two side setbacks come off the width.
⚠ Exam traps: take the side setback off twice (left and right). If a maximum lot coverage is given, the house can't be bigger than lot area × coverage %, even if the envelope is larger. Setback figures here are examples; real ones depend on the zoning and any restrictive covenants.
🌴 How big is an acre?
1 acre = 43,560 sq ft. Watch typical Bahamian house lots fill one acre.
💡 Quick checks: ¼ acre = 10,890 sq ft · ½ acre = 21,780 sq ft · a lot 100 ft × 100 ft = 10,000 sq ft ≈ 0.23 acre.
💵 Where the commission goes
Follow the money from the sale price to the salesperson's pocket. Commission is worked out on the gross price, split between the two firms, then each firm splits with its salesperson.
💡 BREA rates: 6% developed property · 10% vacant land · 10% sale of a business. A salesperson is only ever paid through their broker.
🧾 Closing statement: debits and credits
Watch each item drop into the right column. Debit = what that person pays or owes. Credit = what they receive or have already paid.
💡 Normal gross sale: the seller pays commission + half the VAT; the buyer pays the other half. Ignores legal and recording fees to keep it simple. VAT rates from the BREA website table.
📈 Cap rate: income → value
An investor pays for income. Slide the cap rate and watch the value move — a higher cap rate means a lower value for the same income.
I
Income = Value × Rate
R
Rate = Income ÷ Value
V
Value = Income ÷ Rate
💡 Cover the one you want in the triangle: what's left tells you to multiply (side by side) or divide (one over the other). NOI never includes mortgage payments.