JAMAICAN REAL ESTATE : TIPS
These are only some of the common questions people ask when interested in buying or selling real estate in Jamaica. We have collected information which may be helpful when dealing with Jamaican real estate. Please note that all amounts or percentages are only approximations, using past experience and other references as a basis. Some percentages, rates and time involved will vary depending on the particular institution, attorneys, parties involved and other factors. However, our intention is to provide material to be used as an estimated guideline only.
If you have any questions about the information below or any other related issue, please feel free to contact us anytime.
What do I need to do?
There are some factors to consider to help speed the process and ensure a smooth transaction:
- Verify ahead of time exactly where and in which institution the funds are located.
- Make sure funds to be used for the transaction are available AND accessible (e.g. not in a fixed deposit etc.)
- You should contact an attorney to arrange handling the legal aspects of the sale.
- When both seller and buyer are present in Jamaica, the progression is much more expeditious. The process of transferring all documents to and from countries abroad slows the total time for completion tremendously.
- Make sure that premises are vacated, if tenants occupy. Make sure monthly tenants are properly served at least 30 days notice (required) from the final date.
- The buyer's attorney must do a title search prior to deposits and signing the sale agreement.
- At times the Stamp Office will require a new valuation of the property. If so, this can sometimes slow the process down but has to be done if so directed.
- A deposit of 15% - 20% of the sale price is required for the transaction to begin.
- If you are seeking a mortgage, find out their terms and see if you realistically can qualify either alone or with other parties.
- Make a list of and collect ALL documents required by the mortgage institution.
- Missing dates for their meetings to approve of applications for mortgages can mean delays of sometimes more than a month. Be sure to attend meetings at times and dates specified to avoid such costly delays.
- The mortgage process requires documents to exchange hands considerably. Try to keep a log of movement of such documents throughout the procedure and keep a complete set of copies for your own records.
- You must have proof of all necessary funds for the attorney to issue the letter of undertaking to seller's attorney.
How long will it take?
-
Cash Sale - Once the deposit is received and the sale transaction has begun, the Stamp Office then takes about 21 days to complete the stamping procedure. The balance may be payable upon signing the registerable transfer, if so stated in the sales agreement, and if this is the case it could take between 3 to 5 weeks to complete the Sale.
-
Mortgage Sale - With the various parties involved in this method (buyer, seller, mortgage company, attorneys for each of these parties etc. ), the transfers of documents to and from involved parties, scheduled dates and the requirements of each, the process can sometimes take hopefully about 3 months but sometimes as long as 6 months, depending on many factors (read "What do I need to do?" recommendations for mortgage transactions).
What Costs are involved?
| SELLER'S COSTS: |
Vendor's
Share |
Approximate
Percent |
| Stamp Duty* |
½ |
2.75% |
| Registration * |
½ |
0.25% |
| Agreement for Sale* |
½ |
0.20% |
| G. C. T. (16.5%) On Agreement for Sale |
|
0.03% |
| Transfer Tax |
full |
7.50% |
| Commission On Sale |
|
5.00% |
| G. C.T. (16.5%) On Commission |
|
0.75 % |
| Approximate Sale Sub - Total |
|
18.75 % |
| Attorney's Fees Vary* |
|
1.50 - 3.00% |
| G. C. T. (16.5%) on Attorney's Fees |
|
0.45 % |
| Approximate Total Cost |
|
20.00 % |
 |
| BUYER'S COSTS: |
Buyer's
Share |
Approximate
Percent |
| Stamp Duty |
½ |
2.75 % |
| Registration* |
½ |
0.25 % |
| Agreement for Sale* |
½ |
0.03% |
| G. C. T. 16.5% on Agreement for Sale |
|
0.03% |
| Attorney's Cost* |
|
1.50 - 3.00% |
| G.C.T. 16.5% on Attorney's Cost * |
|
0.45% |
| Approximate Sub- Total |
|
5.18 - 6.68 % |
| With a mortgage from Bank |
|
3.00 % |
| Approximate Total Cost |
|
8.18 - 9.68 % |
* Variable |
|
