Orange Sunset at Lime Cay Jamaica
Can non-Jamaicans buy property in Jamaica?
Yes, there are no restrictions for overseas purchasers of properties in Jamaica. Additionally, there are no foreign exchange restrictions currently in Jamaica. Therefore, anyone can send money to Jamaica and from Jamaica, subject to the prevailing exchange rates at the time of transaction, and the Financial Institution being used.
We are thinking of moving to Jamaica; we may need a mortgage. What are the possibilities?
A number of local banks offer mortgages and offer special rates to first time buyers. Additionally, two of the largest Building Societies have offices overseas. Through these locations they offer savings and mortgage packages for those people seeking to buy or build their dream home in Jamaica.
How long does a sale transaction take?
A cash purchase may take approximately 60 days to be completed. This of course, depends on the specifics of the particular transaction. In cases when the purchaser requires a mortgage, these types of transactions can take on an average ninety days or more to be completed. The agreement for sale may have a completion time of within 90 to 120 days. Contact your lending institution or attorney for a more specific time-frame on obtaining a mortgage.
Once you have decided on a property, after the initial viewing, and if need be, I will arrange for you to view the property again to get all your questions answered. If, after viewing the property, your questions are answered, and you are interested in purchasing, I will prepare an ‘Offer to Purchase’ for you to sign. The Offer to Purchase outlines the terms of the offer and is the basis on which the seller’s attorney prepares the Sales Agreement.
Should the seller accept your offer, a minimum deposit of 15% of the purchase price is required at the signing of the Sales Agreement. Your attorney will instruct you on the appropriate time when to pay the deposit. Buyers need the assistance of an attorney-at-law who is experienced in conveyancing to review the Sales Agreement and conclude the sale transaction. Keep in mind, that there is no agreement (Contract) between the purchaser and the vendor until the Agreement for Sale is signed and deposit paid.
Having completed the Sales Agreement, the process to transfer the property title and payment of transfer taxes and stamp duty is undertaken by the attorneys representing both parties. The balance of the purchase price is due at the closing of the sale. For purchases that involve a mortgage from a Jamaican financial institution, the time to complete the sale is approximately 3 months from the date of signing the agreement. For a cash purchase, the buyer and seller determine the time period. For Returning residents, I suggest you contact the various departments (i.e., Custom Department or the Returning Residents Association), for more information and procedures.
What are the costs in Purchasing a property?
The cost of purchasing your can amount to approximately 5%, consisting of a Registration fee . Speak with an attorney who will better be able to provide the exact cost.
What are the costs involved in selling your property?
A vendor or seller will have certain costs which are fixed as a percentage and those which will vary, also as a percentage. Below you will find rates most commonly encountered and advise that there may be some variation given special circumstances or arrangements:
- Transfer Tax (fixed rate) 4.0% of selling price
- Stamp Duty (a fixed rate of 3.0% shared) 1.5%of selling price
- Registration fee (a fixed multiplier shared of 0.05% to 0. 0.0025% of selling price
- Legal Fees (variable) 2.0%-4%. Your attorney will give you the exact percentage he or she charges.
- Real Estate Agents Commission (variable) a normal commission rate of 5.0% of the selling price
- 17.5% GCT (Consumption tax) on the Agents fees and the Legal fees.
Twilight on Blue Lagoon Jamaica
What are the costs involved in buying a property?
The costs of purchasing a property include:
- Mortgage processing fees (to be determined by financial institution)
- Attorneys fees (approximately 3%-4% of purchase price or as negotiated)
- Government stamp duty (3.0% of the purchase price), which is shared equally between seller and buyer
