The notorious house on a hill finally has a buyer, the Royal Gazette has learned.

The ill-gotten Terrence Smith mansion at 21 Tee Street in Devonshire is now under contract for $2.25 million after a hotly contested hearing yesterday before Supreme Court Justice Richard Ground.

Once the sale is officially complete lender Capital G Bank will recoup all the money it originally loaned to the convicted defrauder.

The initial loan was about $840,000, and after interest and other costs, Capital G should be reimbursed somewhere in the neighbourhood of $1 million and $1.3 million. “The bank wanted to ensure that it made every effort to ensure that the property was sold for the highest possible market value,” said Capital G attorney Justin Williams, “maximising the return to all interested parties.”

The only other interested party to date is the Crown which successfully prosecuted the criminal case against Mr. Smith.

The Crown’s representatives initially argued it should get the full amount of the sale and Capital G should get nothing, but the Chief Justice prevented that move even though the bank conceded at trail it had not properly vetted the defendant’s financial information.

With a $2.25 million sale, the Crown would be entitled a balance somewhere in the neighbourhood of seven figures.

But that’s no slam dunk because further arguments of entitlement to the remaining funds could still come from the Bermuda Housing Corporation - Mr. Smith’s swindled employer — or Veronica Smith — who was married to Terrance, co-signed on the loan, and was never convicted of any wrongdoing.

And perhaps foreshadowing what may be yet to come, counsel for Mrs. Smith was present in courtroom on Thursday.

In November of last year the lavish three-bedroom three-level home with five bathrooms and a stunning view went on the auction block.

Bids got as high as $2.2 million, but there was no deal. Then merely two months later, an addition $50,000 commitment proved to be enough to get approval from the Chief Justice.

On this point Mr. Williams points out that $2.25 million “was the highest offer received for the property after auction sale and private tender.”