What do I need to know about buying and selling in Jamaica?
Here are a few things to consider.
A good real estate attorney can help make the process of buying or selling a property go smoothly. While it is relatively straightforward to buy and sell property in Jamaica, there is still a complex series of steps that an experienced attorney can help streamline.
Once the property has been identified, an offer is made to the seller and if accepted, the seller’s attorney prepares an Agreement for Sale. This Agreement will outline the terms of the transaction, such as the proper description of the land, the purchase price, the timing for completion, whether the financing for the transaction will be cash or mortgage, whether the property is being purchased vacant or occupied, and other important details. The buyer’s attorney will review the contract and conduct checks at the Titles Office to ensure the title for the land is in the name of the seller. Once the terms of the Agreement are finalized between the seller’s and buyer’s attorneys, the Agreement is signed, and a deposit (usually 10% of the sale price) is paid to the seller’s attorney making the contract binding. The buyer’s attorney will assist with carrying out further due diligence on the property, for instance by recommending that a surveyor’s identification report be obtained to ensure there are no issues with the property such as breaches of restrictive covenants or boundary irregularities.
The seller’s attorney usually has carriage of sale which means it is their responsibility to ensure that steps such as the payment of all Government costs namely, transfer tax, stamp duty and registration fees are taken, so that the title can be transferred to the buyer upon their payment of the balance purchase price.
On completion of the purchase, and in some cases before completion, the purchaser will be let into possession of the property. At this time the purchaser will transfer the property tax and utility bills into its/his/her name and will become responsible for these outgoings and the property as the person in possession.
