Wednesday, March 11, 2009

Real Estate in Jamaica - Costs on Sale


Subsequent to comments from a reader I have decided to address the issues of costs to be borne by both vendor and purchaser during a real estate sale.

When a purchaser pays signficant amounts for property, perhaps his largest ever investment in his lifetime, he is sometimes stumped by the additional costs that get tacked on to the purchase price, indeed if he were not aware of these before it was actually demanded, it could lead to the sale falling through simply due to lack of ability to pay in full. Thus Purchasers need to make themselves aware of these charges prior to commiting to a purchase. Likewise Vendors have fianancial obligations when they sell property which results in them not taking home the gross purchase price and they too need to make themsleves aware of the amount they are likely to net when they are planning to sell property.

  • Transfer Tax
As stated earlier, under the Transfer Tax Act this is mandated to be borne by the Vendor. It is a capital gains tax. Fortunately for Vendors this tax has been reduced over the last year. Now this tax which is payable on on an ad valorem basis has dropped to 5.5% to be paid by the Vendor on the fair market value of properties sold under contracts dated January 1, 2009 and later.

  • Stamp Duty
The practice is for this to be borne by both parties equally and is currently set at 4.5%. It too is an ad valorem tax imposed on the contracts for sale of land.

  • Attorney's Fees

This is for you to negotiate with your lawyer but usually starts from upwards of 2% of the value of the property being sold. In addition there are extra charges for the contract and the letters of possession and to the utility companies. All of these fees attract general consumption tax.

  • Registration Fee

This is the fee payable to the National Land Agency sometimes referred to as the Titles Office and is currently 0.5% of the consideration/purchase price as displayed on the transfer. Again the practice is for this to be borne by the vendor and purchaser.

12 comments:

The Redhead Riter said...

Stopping by to give a little blog ♥ and thank you for visiting me!

You are too funny!

Night Owl Mama said...

Very detailed hopefully will answer the ?'s

Stopping by from Sits to give some comment love come on by http://nightowlmama.blogspot.com/2009/07/top-10-reasons-i-am-excited-to-stay.html

c u them

KERRY said...

Thank you for the information. I come across a great Jamaican Patois site that I would like to share with your readers. http://wisejamaican.com

Rohfun All in One Page Office Site said...

great post
thank for share
regard
from www.rohfun.com

ad said...

Thank you for the information. I come across a great Jamaican Patois. Yalova Emlak

marry said...

Blogs are so informative where we get lots of information on any topic. Nice job keep it up!!
_____________________________

Dissertation Introduction

Belinda Dawson said...

Hi,

I am Belinda Dawson, a webmaster of some finance related sites & blogs wanted to keep a good website proposal for you.

I visited your site, http://jamaicanlaw.blogspot.com/, which is totally related to FINANCE and I think that the content of your site will be of good interest to the visitors.

I believe that only good content will not help you in gaining the Google values. For that purpose healthy content link exchange or Normal link exchange is essential. If you agree with this we can exchange some articles as well as good links which will provide an extra benefit to our sites.

I wish to utilize this opportunity, because your site is fully related to my topic.
I would appreciate if you place my link within the content to our site and I will do the same. It will give extra mileage to our sites and help to gain some extra values in the eyes of search engines.

If you agree with me please reply me on this email: belinda.dawson1984@gmail.com. I have some good offers which can fulfill your requirements,

Looking forward for your positive reply!!

Thanks,

Belinda Dawson

Dissertation Writing service said...

This kind of information is very limited on internet. Nice to find the post related to my searching criteria. Your updated and informative post will be appreciated by blog loving people.

Dissertation writing help

paula said...

What a fantastic blog!!I loved how detailed each of the entries were.They were well balanced - fun and informative.

philippine real estate

Bon Ryan said...

... buyers, be aware of hidden charges.

Very informative post.


Pattaya Real Estate

Chicago Business Lawyer said...

Thanks for writing this great article. I am glad to be a part of your post.
Chicago Real Estate Attorneys

Nick said...

chalet a louer quebec
It’s really great post. I would like to appreciate your work and would like to tell to my friends.