Buying Real Estate in Jamaica can be a tricky business, especially if you don’t have the right people working for you! One of the most important people I work with in Jamaica is a Real Estate Attorney. She vets every deal, digs into the details and makes sure a buyer’s interests are being protected at all times.

I have spoken to a few homebuyers recently that are having challenges with their current attorney or are not sure of what point in the buying process they should engage an attorney.

I thought it would be helpful to provide an overview of the role of a real estate attorney so you know what to expect and how to utilize their services to the fullest. The below is a step by step guide through buying in Jamaica. Please keep in mind any pricing is valid as of March 2023 and can fluctuate over time.

Pre-Contract Requirements

• Provide Client with overview of the sale process and costs associated with sale or property
• Sale Price – Purchaser required to pay
• Stamp Duty (Currently $5,000) – shared equally between Vendor and Purchaser
• Registration Fee (Currently .5% of Sale Price) – Shared equally between Vendor and Purchaser
• Vendor’s Attorney’s One Half Cost for Preparation of Agreement for Sale (Estimated Maximum $160,000) – Shared equally between Vendor and Purchaser
• Vendor’s Attorney’s One Half Cost for Letters of Possession (Estimated Maximum $60,000) – Shared equally between the Vendor and the Purchaser
• Cost for Surveyor’s Report – Calculated based on acreage/value of property
• Cost for Valuation Report – Calculated based on value of property
• General Consumption Tax (G.C.T.) currently 15%

Costs Specific to Developments

• Escalation Fee – Usually maximum 10% of Sale Price
• Fee for finishings/fixtures including grills to be installed at property
• Maintenance Fee – Varies and usually required to pay 3-6 months as part of closing costs

Contract Requirements

• Request required information from Purchasers – including full legal name, address, occupation, Tax Registration Number (TRN), location of property, sale price, whether cash purchase or mortgage financing for balance purchase price, sale price, Vendor(s) details/Vendor(s) Attorney details;
• Make contact with Vendor(s)/Purchaser(s) Attorneys – Request draft Agreement for Sale and copy of the Duplicate Certificate of Title (DCT) from the Vendor(s) Attorney, who will have carriage of sale;
• Once in receipt of the draft Agreement for Sale and DCT from Vendor(s) Attorney, review same to ascertain
• Agreement for Sale – whether to request amendment to any clauses for the Purchaser(s) best interest
• DCT – whether there are any restrictions on Purchaser(s) intended use of property or there are any existing breaches of restrictive covenants or encroachments that may adversely impact Purchaser obtaining mortgage financing – for example a distance breach in respect to a Restrictive Covenant endorsed on the Duplicate Certificate of Title.
• Existing breaches – Ascertain whether Vendor is amenable to cover costs to remedy said breaches. In the event Vendor is not amenable to cover costs to do so, then advise Purchaser to take an informed decision whether they will proceed with sale and cover costs to remedy any existing breaches.
• When terms of Agreement are settled, forward Agreement for Sale, Transfer of Land and Retainer Agreement to Client to be signed and returned. Also include Vendor’s Attorney banking details – It is required that a Notary Public witness the signature of the Purchaser on the Agreement for Sale and Transfer.
• The Client is to be informed that pursuant to the Agreement for Sale, when they return the signed documents to their Attorney, they are required to pay the Deposit (usually 5% – 10%) and the Vendor’s Attorney one half cost for preparation of the Agreement for Sale plus GCT on that amount – Instruct Client to pay funds to Vendor’s Attorney Bank Account.
• When the Client’s pay the deposit and one half cost plus GCT thereon and returned the signed documents to their Attorney, their Attorney is then required to forward the signed documents to the Vendor’s Attorney, along with documentary proof of payment of the monies.

Cash Sale/Purchase

Once the Vendor’s Attorney-at-Law are in receipt of the executed documents and payment of the deposit and one half cost for preparation of the Agreement for Sale, Registration Fee and Stamp Duty and the Vendor signs the Agreement for Sale, the sale process will include the following steps:

• Pursuant to Retainer Agreement Purchaser required to pay deposit on legal fees and costs to his/her Attorney;
• The Vendor’s Attorney-at-Law should forward all the following documents to me, the signed and dated Agreement for Sale, Statement of Account to Close, Certificate of Payment of Property Taxes, Receipt evidencing up-to-date payment of water bill and Receipt evidencing payment of purchase price and costs;
• The Vendor’s Attorney-at-Law should take the requisite steps to have the Agreement for Sale lodged at Tax Administration Jamaica (Stamp Office Division) in order to facilitate them assessing same for Transfer Tax and Stamp Duty payable;
• Once Tax Administration Jamaica (Stamp Office Division) completes their assessment, they will issue Notice of Assessment outlining the amount assessed as payable for Transfer Tax and Stamp Duty and the amount stated must be paid by the Vendor’s Attorney-at-Law within fourteen (14) days of the date of the Notice of Assessment. If not paid within that time frame, then one Hundred percent (100%) penalty will be applied. However, it is the Vendor’s Attorney-at-Law who should ensure this is done. Therefore, the Vendor’s Attorney-at-Law should proceed to pay the amounts from the deposit and costs that the Purchaser would have paid to them. Transfer Tax is currently two percent (2%) of the sale price and Stamp Duty is currently Five Thousand Dollars ($5,000.00). The Vendor is obligated to pay the total Transfer Tax. However you and the Vendor equally share the cost for Stamp Duty;
• The Vendor’s Attorney-at-Law should proceed to pay the amount assessed for Transfer Tax and Stamp Duty and simultaneously lodge the Transfer of Land at Tax Administration Jamaica (Stamp Office Division) to be cross-stamped;
• Tax Administration Jamaica (Stamp Office Division) will thereafter issue the Transfer Tax Certificate and same should be returned to the Vendor’s Attorney-at-Law along with the stamped Agreement for Sale and cross-stamped Transfer of Land;
• Once in receipt of the Transfer Tax Certificate, stamped Agreement for Sale, cross-stamped Instrument of Transfer from Tax Administration Jamaica (Stamp Office Division) and all of the purchase price and costs have been paid over to the Vendor’s Attorney-at-Law (within 60 days from date of Agreement), the Vendor’s Attorney-at-Law should then proceed to lodge all the requisite documents along with Managers Cheque for the requisite Registration Fee (.5% of the Sale Price which you and the Vendor share equally) at the National Land Agency (Titles Office Division). This is to facilitate the Purchaser’s name being endorsed on the Certificate of Title as the registered proprietor;
• At this stage in the event the Purchaser has not paid all their Attorney’s legal fees and costs, he/she will be required to pay over the balance legal fees and costs to his/her Attorney;
• Once the Vendor’s Attorney-at-Law is in receipt of the Duplicate Certificate of Title from Titles Office with the Purchaser’s name endorsed on same as the registered proprietor, they should proceed to prepare and forward the Letters of Possession addressed to the Utility Companies (Jamaica Public Service Ltd and National Water Commission) and any other closing documents for the property to the Purchaser’s Attorney;
• Thereafter, the Purchaser’s Attorney will forward the Letters of Possession and any other closing documents and keys to the property to the Purchaser;
• At this stage the sale process will be complete and the Purchaser will have possession of your new property.

Mortgage Financing

Once the Vendor’s Attorney-at-Law is in receipt of the executed documents and payment of the deposit and one half cost for preparation of the Agreement for Sale and the Vendor sign the Agreement for Sale, the sale process will include the following steps:

• Pursuant to Retainer Agreement Purchaser required to pay deposit on legal fees and costs to his/her Attorney;
• The Vendor’s Attorney-at-Law should forward all the required documents in order for the Purchaser to proceed with his/her mortgage application. These will include the signed and dated Agreement for Sale, Statement of Account to Close, Certificate of Payment of Property Taxes, Receipt evidencing up-to-date payment of water bill and Receipt evidencing payment of deposit;
• The Vendor’s Attorney-at-Law should take the requisite steps to have the Agreement for Sale lodged at Tax Administration Jamaica (Stamp Office Division) in order to facilitate them assessing same for Transfer Tax and Stamp Duty payable;
• Once Tax Administration Jamaica (Stamp Office Division) completes their assessment, they will issue Notice of Assessment outlining the amount assessed as payable for Transfer Tax and Stamp Duty and the amount stated must be paid by the Vendor’s Attorney-at-Law within fourteen (14) days of the date of the Notice of Assessment. If not paid within that time frame, then one Hundred percent (100%) penalty will be applied. However, it is the Vendor’s Attorney-at-Law who should ensure this is done. Therefore, the Vendor’s Attorney-at-Law should proceed to pay the amounts from the deposit that the Purchaser would have paid to them. Transfer Tax is currently two percent (2%) of the sale price and Stamp Duty is currently Five Thousand Dollars ($5,000.00). The Vendor is obligated to pay the total Transfer Tax. However the Purchaser and the Vendor equally share the cost for Stamp Duty;
• The Vendor’s Attorney-at-Law should proceed to pay the amount assessed for Transfer Tax and Stamp Duty and simultaneously lodge the Transfer of Land at Tax Administration Jamaica (Stamp Office Division) to be cross-stamped;
• Tax Administration Jamaica (Stamp Office Division) will thereafter issue the Transfer Tax Certificate and same should be returned to the Vendor’s Attorney-at-Law along with the stamped Agreement for Sale and cross-stamped Transfer of Land;
• Within (45-60) days of the date of the Agreement for Sale, your Mortgagee should have issued the Letter of Commitment to the Vendor’s Attorney-at-Law;
• Once in receipt of the Transfer Tax Certificate, stamped Agreement for Sale, cross-stamped Instrument of Transfer from Tax Administration Jamaica (Stamp Office Division) and the Letter of Undertaking from your Mortgagee (within 90 -120 days from date of Agreement) and any shortfall (if required), the Vendors’ Attorney-at-Law should then proceed to forward all the requisite documents along with Managers Cheque for the requisite Registration Fee (.5% of the Sale Price which you and the Vendors share equally) requested in your Mortgagee’s Letter of Undertaking to the Purchaser’s Mortgagee
• At this stage in the event the Purchaser has not paid all their Attorney’s legal fees and costs, he/she will be required to pay over the balance legal fees and costs to his/her Attorney;
• The Purchaser’s Mortgagee will then lodge all the required documents at the National Land Agency (NLA). This is to facilitate its mortgage being registered on the Certificate of Title and the Purchaser’s name being endorsed on the Certificate of Title as the registered proprietor;
• Once the Purchaser’s Mortgagee is in receipt of the Duplicate Certificate of Title from NLA with its mortgage registered and the Purchaser’s name endorsed on same as the registered proprietor, they should proceed to pay over the mortgage proceeds of to the Vendor’s Attorney-at-Law;
• The Vendor’s Attorney-at-Law should then prepare and forward the Letters of Possession and any other closing documents for the property to the Purchaser’s Attorney;
• Thereafter, the Purchaser’s Attorney will forward the Letters of Possession and any other closing documents to the Purchaser;
• At this stage the sale process would be complete and the Purchaser will have possession of his/her new property.

As you can see, it is beneficial to engage a Real Estate Attorney from the beginning. If you are in need of a trustworthy, knowledgeable attorney, please reach out to me at jess@sidehustlemama.co for a recommendation.

Here are two ways I can help, when you are ready.

1. Begin your home buying journey with my 3 day email course. Learn how to obtain a TRN, get pre-approved and find your dream home. Get started here: https://sidehustlemama.ck.page/products/getting-started-email-course
2. Need personalized assistance? Book a 60 minute, paid consulting call here: https://calendly.com/sidehustlemama/60-minute-call