Transfer tax and stamp duty are fees that are attached to your cost when you are involved in a transaction of houses for sale in Jamaica, usually it is a percentage of the value of the land. Normally the value is in line with the sale price.

The transfer law establishes that the transfer tax is 7.5%. There is relief in the amount of $10,000.00 when the value of the land is $150,000.00 or less. The type of housing does not matter. It is generally a misconception that waterfront homes for sale in Jamaica attract a much higher transfer. This is simply not true. However, there are some exemptions to these property taxes in Jamaica.

exemptions

1. Transfers of ownership by the government and local authorities of Jamaica.

2. Transfers to the government or local authorities of Jamaican land for purposes such as roads and other reserves in subdivisions.

3. Transfers by way of donations to authorized institutions of goods for their exclusive use for charitable purposes.

4. The principal place of residence of the spouses (Joint Tenancy or Tenancy in Common) In case of death only.

Stamp duty: Payment of stamp duty is governed by the Stamp Duty Law. The stamp duty payable on land is approximately 5.5% of the total value of the land/dwelling.

Certificate of title:

Once a property is registered, it is identified by Volume and Folio numbers in the Title Registry Book. The original Title is kept in the Office of Titles and annotations are made on it whenever something affecting any interest in the land is brought to the attention of the Registrar of Titles. For example, a transmission, a mortgage, the death of a co-owner, easement concessions, etc. This is the standard for all houses for sale in Jamaica.

The owner of the land obtains the duplicate Certificate of Title at the Registry. A duplicate Certificate of Title must be submitted to the Registrar for approval of all transactions affecting the land.

Exercise of Alienation or Transfer of Houses in Jamaica for Sale

This normally begins between the seller (seller) and the buyer (buyer) or between any of the aforementioned parties and a Jamaican real estate broker or Jamaican real estate agent. The buyer or attorney must inspect the duplicate certificate of title. This is vital as some houses for sale in Jamaica come with no sales agreements and therefore no transfer may have taken place. A title proves exactly who owns the land.

The usual form of Purchase and Sale Agreement establishes, among other things:

(1) Legal names, registered office and lucrative activity of the contracting parties.

(two) Complete description of the house in Jamaica for sale – including the actual size or dimensions, the registered location and the folio and volume numbers of the Certificate of Title, in the case of buildings and land registered in Jamaica. In the case of land with Common Law Title, the size, description, boundaries and other relevant details.

(3) Purchase price – in words and figures to avoid errors and misunderstandings.

(4) Termination – The effective date on which the final payment of the transaction is expected to be collected and the entire sale completed, that is, the transfer is made, checks and titles are exchanged.

(5) transfer cost – unless otherwise agreed, this generally states that each party must bear half of the cost of the stamp duty, the registration fee and the costs of the lawyers.

Jamaica Real Estate Agents Commission Payment – ​​Paid upon completion of title transfer and closing of transaction.

Rates in the sale of land

1. Transfer tax: 7.5% of the market value (only for the supplier)

2. Stamp duty: approximately 5.5% of the market value

3. Registration Fee: Approximately 2% of market value (or $2.00 per 1,000)

4. Attorney Fees – Sliding Scale – Jamaica Bar Association (Effective June 1, 1991)

5. Surveyor Identification Fees:

(i) Securities up to $500,000.00 = $1,500.00, and thereafter, 0.1% up to 1 million, and thereafter, $1,000 per million. Plus $400.00 Title and Research Fee/Charge.

(ii) Properties exceeding 1 acre or Irregular Boundaries have a transit fee added. The rate depends on the length of the crossing.

(iii) If the land is outside the corporate area, $6.00 per mile.

6. Valuation Fees:

Kingston Jamaica Corporate Area

Corporate Area: Cost $3.00 per 1000 of the market value and $150.00 for travel and incidental expenses. Minimum fee of $1,000.00 plus trips and contingencies $1,150.00

Outside the Corporate Area – (Beyond 15 miles from Kingston Jamaica) 3.50 per 1,000 of market value plus travel @ $3.50 per mile minimum rate of $1,500.00 plus travel.

7. mortgage costs: (Building societies)

(1) 1% application fee (save)

(2) 2% Application Fee (No Saver)

(3) Life Insurance – amount varies by age.

NB. The Mandatory Company will no longer accept an assignment of an Existing Policy.

(4) Mortgage indemnity: 7% of the sum insured applies when the mortgage exceeds two standard thirds: 90% of the mortgage.

(5) Stamp duty on mortgage

(6) Mortgage Registration Fees

(7) Attorney costs

(8) Valuation commission

(9) Identification of surveyors

(10) First month mortgage payment

Mortgages: – $1.00 per 200 x 25% or 0.65%

These outline all the costs associated with buying houses for sale in Jamaica. It is important that both the seller and the buyer understand the fees associated with this Jamaica real estate transaction.