FREQUENTLY ASKED QUESTIONS

  • Buying And Selling Real Estate In Jamaica

  • Q: What are the obligations of a purchaser in pruchasing real estate?
    1. To pay the purchase price and costs which are:
      • 1/2 Stamp Duty (2% of Purchase Price)
      • 1/2 Registration Fee (.25% of Purchase Price)
      • 1/2 Vendor’s attorney’s cost for preparing Agreement of Sale
      • Purchaser’s Attorney’s fees on Transfer
    2. To ensure that what is on the Certificate of Title is what is on land by engaging the services of a Commissioned Land Surveyor.
    3. Make it known to the vendor any discrepancy which the Commissioned Land Surveyor may reveal.
    4. If Mortgage is required, expeditiously make the application for mortgage and ensure that you comply with all the requirements of the lending institution.
  • Q: What are the obligations of the vendor in selling real estate?
    1. To ensure that the property he/she is selling is free from encumbrances, that is, caveats and mortgages.
    2. Ensure that the taxes and water expenses are paid up to the date of completion of the sale.
    3. To pay the Transfer Tax (5%) and costs which are:
      • 1/2 Stamp Duty (2% of Purchase Price)
      • 1/2 Registration Fee (.25% of Purchase Price)
      • 1/2 Vendor’s Attorney’s Fee for preparing Agreement of Sale.
      • Pay his/her attorney’s fees on Transfer
  • Q: What is the commission to be paid when the services of a real estate broker is engaged?

    Standard industry norm is 3-5% of the cost of the property but it is negotiable.

  • Q: How does a real estate transaction proceed?

    After the offer to purchase is accepted by the Vendor, the Vendor prepares the agreement of sale according to the terms agreed upon by the Vendor and the Purchaser and sends it to the Purchaser’s Lawyer it to be executed by the Purchaser and returned with the agreed down payment.

    After the signed Agreement and the down payment are received by the Vendor’s Lawyer the Vendor will execute the Agreement and a copy of which will be forwarded to the Purchaser’s Lawyer.

    The Vendor’s Lawyer will present the agreement to the Taxpayer Audit and Assessment Department (TAAD) for the Stamp Duty and Transfer Tax to be assessed after which the Transfer Tax and Stamp Duty are paid from the down payment received from the Purchaser on account of the Purchaser Price.

    After the payment of Transfer Tax and Stamp Duty are noted on the Agreement for Sale, the Vendor’s Lawyer will forward to the Purchaser’s Lawyer (in case of a cash sale) the Instrument of Transfer together with a statement of account indicating the balance of Purchase Price and Purchaser’s costs to be assessed so that the sale may be completed.

    After the Instrument of Transfer is signed and the TAAD cross-stamps it to evidence the payment of Transfer Tax and Stamp Duty, the Instrument of Transfer the Certificate of Title along with the required registration fee to be paid to the Office of Titles will be submitted to National Land Agency (Office of Titles) for the transfer to the Purchaser to be endorsed on the Certificate of Title.

    When this is done the transaction is complete with the Vendor receiving the net proceeds of sale and the purchaser receiving his Certificate of Title.

  • Q: How long will it take to complete the transaction?
    1. If it is a cash purchase, the transaction cannot take less than 30 days.
    2. If it will be financed by a mortgage it will take a minimum of 90 days, depending on how quickly the requirements of the lending institution are satisfied.
  • Q: Is it ok to use the same lawyer who is acting for the other party, so that the vendor and the purchaser can share the costs and save some money?
    No, as the Lawyer can only protect the interest of either the Vendor or the Purchaser. If a problem arises there will be a conflict of interest and one party will be left unprotected.
  • Q: If something happens and the purchaser cannot complete the sale, will he/she lose the down payment?

    Whether it is stated in the contract or not, a Purchaser may lose up to 10% of the Purchase Price if he she fails to complete the Sale Agreement. In Law the Vendor is entitled to 10% of the Purchase Price in damages for the Purchaser’s breach.

  • Q: What happens if after the agreement for sale is signed and the down payment paid the vendor refuses to complete the sale?

    The Purchaser’s remedy is to obtain from the Court an Order for Specific Performance of the Contract by the Vendor.

Testimonials

  • The Heel Bar's workshop is now settled and fully operational at Paraiso Avenue, Kingston 10. This is therefore a good time to say thank you. First for recommending this ideal location, then for the outstanding and beyond-the-call-of-duty assistance that you provided, to enable us to settle as quickly as practicable. We appreciate the professionalism with which you liaised between ourselves and the Lessor, and we are grateful to you for helping us to secure our electrical supply. We thank you most sincerely.
    Maria A. Jones
    The Heel Bar - Owner
  • As I get ready to depart Jamaica and return to my home, I thank you for providing me with a most notable experience as a tenant in your rental unit at 11 Seaview Avenue, Kingston 6. The location was superb and an easy commute to UWI Mona campus where I worked. Most of all, it was a very peaceful and secure location within a short distance to shopping and entertainment. I was impressed from the beginning with how well and complete the unit was furnished. The grounds and overall facilities were well maintained, and you were always responsive, both timely and accommodating, to every request I made.I am also grateful to you for how you assisted in rectifying JPS’s mistake in my electricity billing, and your constant queries to insure that all was well. I am happy to recommend your agency to anyone wanting a truly professional experience. If I return again to spend any significant time in Jamaica, you can be sure that I will contact you. Again, thanks for a most satisfying time.
    Paul G. Simmonds
    Ph.D., St. Croix, U.S. Virgin Islands
  • In reference to the rental of apartment at Regency Court and the service you provided I wish to commend you on your professionalism and excellent service delivery. You were thorough, timely, pleasant and professional. You were available for questions and request and it was my pleasure doing business with you.
    Tamara Tamara
  • I wanna say a very big Thank You for your excellent customer service skills. I really appreciate your assistance and your promptness. I have called about ten other realty companies and have looked at about twenty five houses over the past four months. The quality of service was up and down. But I can clearly recommend your company, your service, your expertise to anyone. I really appreciate your efforts and your help in choosing the property of value for money, thanks! It's nice to know that there are still some people in this world that care about customer service and you are one of them. Again, THANK YOU!
    Oral Oral
  • My husband and I would like to thank you very much for your valued asistance in purchasing land and also your prompt responses. We will certainly be recommending you to friends in the UK who are looking to relocate.
    Dee C
  • Thank you very much for handling the sale of my Lot. In your usual professional style you struck a fair deal between vendor and purchaser paving the way for a smooth efficient hassle free transaction. What you promised you delivered and I look forward to recommending your services to family, friends and colleagues. Hope we do business again in the near future.
    John John
  • "First of all, I’d like to say a big thank you to Mr. T.V. Allen, for his assistance in finding me a comfortable and affordable home. After two months at the home, my wife and I are totally satisfied that he gave us value and quality for our money. My dealings with Mr. Allen were nothing short of exceptional. I remember when I was at the lawyer’s office to close the deal & sign the necessary papers. The lawyer never had the keys for the home at hand, and with just one phone call Mr. Allen put his personal business at the tax office aside to bring us the keys. If that doesn’t say dedication to satisfying customers, I don’t know what does. I, therefore, have no hesitation in recommending Terrence (TV) Allen Properties, as I have complete confidence that you will be in the most capable hands."
    Max Max