Friday, April 11, 2008

Real Estate Transactions in Jamaica - Completion

The contract for the sale of land in Jamaica usually specifies a date for completion of the sale. Both parties should make their best efforts to provide all documents, make all payments and affix all signatures so that the completion date can be met.

If the contract does not make the completion date of the essence of the contract it does not mean that delays will be condoned. The contracts often include provisions for the payment of interest on the balance of the purchase money from the date set for completion until the actual date of payment. This clause as to interest can make it payable in the event of delay due to:

1. any reason 2. the purchaser’s fault 3. any reason except the vendor’s fault

Hence you must have your attorney explain to you all clauses and their implications.

In any event time can be made of the essence of the contract in respect of the completion date by either the vendor or the purchaser. Either party must give notice to the other party to complete within a prescribed period which ought to be reasonable in the circumstances.

The contract will usually state whether or not the property is sold with vacant possession. If yes the vendor must remove all persons and goods from the premises as the purchaser is entitled to possession. If the property is sold subject to existing tenancies however the purchaser is entitled to the rents and profits of the property apportioned as of the date of completion.

On completion the purchaser usually obtains title endorsed in his name and possession of the property with the attendant benefits and the vendor gets his net sale proceeds.