You've identified your dream property, and now I'd like to share some key considerations associated with purchasing real estate in Jamaica from a legal perspective:
Legal Representation: While not obligatory, having an experienced attorney-at-law by your side is prudent, as not all transactions are alike.
Source of Funds: It's crucial to provide evidence of your source of financing to your attorney.
Tax Registration Number - You will require a Tax Registration Number to purchase real estate in Jamaica.
Surveyor's Identification Report: Consider engaging a Commissioned Land Surveyor to produce this report. While usually mandatory for mortgage transactions, it's recommended for all purchasers. This report compares actual on-site property details with those on the Certificate of Title.
Valuation Report: Often required for mortgage financing, this report assesses the property's market value and assists in avoiding any unnecessary issues due to value and purchase price discrepancies.
Property Inspection: It is important that the purchaser inspects the property both during the day and at night to identify potential concerns.
National Water Commission ("NWC") Debt, Property Taxes and Other Charges: Charges such as NWC Debts, Property Taxes, Maintenance and Strata Fees, and the like are tied to the property and are considered the owner's responsibility. Therefore, it's vital to confirm that the Seller clears these obligations.
Joint Tenancy or Tenancy in Common: If the property being purchased is to be transferred to more than one person, you must specify your preference for owning the property either as Joint Tenants or Tenants in Common ( some of the differences between these two options are stated in the following article: Differences between Joint Tenancy and Tenancy in Common).
Private Treaty - Following an unsuccessful auction by a financial institution due to the mortgagor's loan default, the property is marketed and sold to the individual making the highest offer. With Private Treaty, the purchaser acquires the property, taking into account any occupants already residing there. Consequently, the purchaser is tasked with gaining possession of the property from the current occupant if necessary.
Cost Factors: The following estimated costs may be incurred when purchasing real estate in Jamaica::
Stamp Duty (JMD2,500),
1/2 of the Registration Fee (0.25% of the Purchase Price),
1/2 of the Agreement for Sale Cost (JMD50,000 to JMD150,000) plus GCT,
1/2 of the Letters of Possession Cost (JMD10,000 to JMD15,000) plus GCT,
Legal Fees (2% to 3% of the Purchase Price),
Attorney's Administrative Costs,
Surveyor's ID Report (dependent on the size of the property),
Valuation Report (dependent on the size, location, and type of the property), and
Mortgage Fees
Be sure to engage the services of an attorney who will guide you through the entire purchasing process, and address any query that you may have.
The foregoing information is intended for general informational purposes only and does not constitute legal advice.
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