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| How can I find out if a real
estate broker or salesperson is licensed to practice? |
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By contacting the Real Estate Board at http://www.reb.gov.jm
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| How long does a sale transaction
take? |
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If it is a cash purchase, the process may take
about 60 days to be completed depending on the
specifics of the particular transaction.
If a purchaser requires a mortgage, transactions
average five to six months to be completed although
the agreement for sale may have a completion time
of within 90 to 120 days.
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| Can a non-Jamaican purchase
property in Jamaica? |
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Yes, there are no restrictions on non- Jamaicans
or non - residents owning property in Jamaica.
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| What are the vendor’s
costs in the transfer of property? |
The vendor’s selling expenses add up to
a total of approximately 16.9 to 19% of the sale
price as follows:
| Transfer tax
of 6% of the sale price |
| Half the stamp
duty which is approximately 2.25% of
the sale price |
| Half of the registration
fee i.e. 0.25% of the sale price |
| The Broker’s
commission fee of usually 5% of the sale price |
| General consumption
tax on the commission fee of 0.825% of the
sale price |
| Attorney’s
fee which range between 2 – 4% of the
sale price |
| General consumption
tax on the attorney’s fee i.e. 0.33
– 0.66% of the sale price. |
| Half the cost
of the preparation of the agreement for sale
i.e. 0.20% of the sale price. |
| General consumption
tax on the cost of the agreement i.e. .033%
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| What are the purchaser’s
costs in buying property? |
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The purchaser’s cost will range between
approximately 4.8 and 10.2% of the purchase
price as follows:
Half the stamp duty which is approximately 2.25%
of the purchase price
Half the cost of the preparation of the agreement
for sale i.e. 0.20% of the purchase price
General consumption tax on the cost of the agreement
i.e. 0.033%
Half the registration fee or 0.25% of the purchase
price
Attorney’s fee of 2 – 4% of the purchase
price
General consumption tax on attorney’s fee
i.e. 0.33 – 0.66% of the purchase price
If financing is being sought add an additional
3% of purchase price.
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| Is it necessary to retain
an attorney to act in the transfer of real estate? |
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Jamaican law requires that a vendor retain an
attorney to draw up the agreement for sale and
to oversee the process until the transfer has
been completed.
A purchaser however is not required to retain
an attorney and can act on his/her own behalf
in the transaction. It is however recommended
that purchasers employ an attorney at law to act
on their behalf.
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| What documents pertaining
to the property do financial institutions require
from the purchaser in order to process a loan application? |
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A signed agreement for sale
A recent appraisal/valuation report
A recent surveyor’s identification report
Proof of payment of up to date water bill
A certificate of payment of property taxes
In some cases where applicable, proof of payment
of insurance and maintenance charges.
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| Is it necessary to have
an appraisal/valuation done on a property before
a transfer can take place? |
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It may be helpful for a vendor to have some
guidance in the setting of his asking price but
it is not a requirement that a vendor does a valuation
of the property to be sold.
A purchaser who is seeking to borrow funds will
be required to have an appraisal/valuation report
undertaken and would have to submit this report
to the lending institution.
A cash purchaser may elect not to have a valuation
done but it is recommended as a guide to making
an offer to purchase.
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| What is the main advantage
of giving a broker an “exclusive right of
sale” listing? |
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If the broker is a member of the Realtors Association
of Jamaica, this type of listing can immediately
be exposed on their website’s multiple listing
system at http://www.realtorsjamaica.com
All members of the Association can therefore access
the listing and have the opportunity of selling
the property for the vendor.
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