Real Estate Process

The Conveyancing process

VENDORS COSTS (APPROXIMATE)

Transfer Tax (vendor only)……………………………………….4.00%

Stamp Duty 3% equally shared…………………………………1.50%

Registration 0.50% equally shared.............................0.25%

Cost of agreement for sale (equally shared)………….*0.20%

GCT on agreement for sale (equally shared)………….*0.04%

Real Estate commission (vendor only)……………………..5.00%

GCT on commission (vendor only)……………………………0.82%

Attorney’s fees…………………………………………………………3.00%

GCT on attorney’s fees……………………………………………*0.54%

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Approximate total cost…………………………………………*15.35%

 

PURCHASERS’ COSTS (APPROXIMATE)

Stamp Duty 3% equally shared…………………………………1.50%

Registration 0.50% equally shared.............................0.25%

Cost of agreement for sale (equally shared)………….*0.20%

GCT on agreement for sale (equally shared)………….*0.04%

Attorney’s fees…………………………………………………………3.00%

GCT on attorney’s fees……………………………………………*0.54% -------

Approximate total cost……………………………………………*5.43%

• INDICATES THAT THIS PERCENTAGE IS VARIABLE •

GCT is 17.5%

 

TIME FRAME FOR REAL ESTATE TRANSACTIONS

CASH SALE

*Upon payment by purchaser of a minimum deposit of 15% of the selling price, and signing of the sales agreement, the transaction commences.

*Stamp Office takes approximately 3 weeks for stamping of documents

*If sales agreement indicates balance is payable upon signing a registrable transfer (as opposed to balance being payable on transfer of title), then completion may be achieved within 30 days. This situation is highly unlikely and hardly ever occurs. Average closing time is approximately 90 days. To accomplish a shorter time-frame than the 90 days, some factors to consider are:

*submitting the Sale agreement, transfer document and registration documents at the same time. *ensuring that all funds are in hand and available. - where are the funds - are they readily accessible and not tied up

*if vendor and purchaser are in Jamaica. If either is overseas, couriering of documents for notarized signatures are time consuming. Sending by post is slow and documents could be lost.

*If premises are occupied. If monthly rental, one month’s notice must be given. It is advisable to give notice once the sale agreement is signed.

*Purchaser’s attorney to carry out title search before signing of sale agreement and paying deposit.

*If Stamp Office want to value the property, this can cause delay. January 2010 SALES CONDITIONAL UPON MORTGAGE Realistically – consider 6 months for completion

*First visit your lending institution (if you have savings with them, they may give you a preferential interest rate). They will provide you with a list of requirements which you must present for them to consider your application. Confirm that you qualify for a mortgage and how much they will lend you. If combining with another person, do they qualify and for how much.

*Ascertain the institutions meeting date for approving applications. They may meet only once every 4 to 6 weeks and your application would have to wait until the next meeting and you must have all your paperwork in place.

*It can take from a few days up to 45 days to receive a letter of commitment

*All funds must be accounted for before your attorney can provide his letter of undertaking to the vendor’s attorney. *This transaction may involve as many as four attorneys’, one for the purchaser, one for the vendor, one for your mortgage company and, if the vendor has a mortgage, the lending institutions attorney who will deal with the discharge of the mortgage. The documents will have to go to each attorney for them to deal with their part.

*Stamp Office may wish to value the property for stamp duty purposes.

 

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