| The transfer tax and stamp duty are fees that are | | | | Jamaican buildings and land. In the case of land with a |
| attached to your cost when you are involved in a | | | | Common Law Title, the size, description, boundaries |
| transaction for houses for sale in Jamaica is usually at | | | | and other relevant details. |
| a percentage value of the land. Normally the value is | | | | (3) Purchase Price - in words and figures to avoid |
| in line with the sale price. | | | | mistakes and misunderstandings. |
| The transfer act states that transfer tax is 7.5%. | | | | (4) Completion - the effective date when the final |
| There is a relief an amount of $10,000.00 relief where | | | | payment for transaction is anticipated to be collected |
| the value of the land is $150,000.00 or less. The type | | | | and the full sale completed, that is, transfer effected, |
| of home does not matter. It is usually a | | | | cheque and titles exchanged. |
| misconception that Jamaica beachfront houses for | | | | (5) Cost of transfer - unless otherwise agreed, this |
| sale attract a much higher transfer. This is simply not | | | | usually states that each party should bear half the |
| true. However there are some exemptions to these | | | | cost of Stamp Duty, Registration Fee and Attorneys |
| Jamaican property taxes. | | | | Costs. |
| Exemptions | | | | Payment of Jamaica real estate agents commission - |
| 1. Transfers of property by Jamaican Government | | | | paid on the Completion of the transfer of title and |
| and Local Authorities. | | | | the closing of the transaction. |
| 2. Transfers to government or Local Authorities of | | | | Fees on sale and purchase of land |
| Jamaican land for purposes such as roadways and | | | | 1. Transfer tax - 7.5% of market value (Vendor only) |
| other reservations in sub-divisions. | | | | 2. Stamp duty - approximately 5.5% of Market Value |
| 3. Transfers by way of gifts to approved institutions | | | | 3. Registration fee - Approximately 2% of Market |
| of property to be used exclusively for charitable | | | | Value (or $2.00 per 1,000) |
| purposes. | | | | 4. Attorney's costs - As per Scale - Jamaican Bar |
| 4. The Principal place of dwelling of spouses (Joint | | | | Association (effective 1st June 1991) |
| Tenancy or Tenancy in Common) In the event of | | | | 5. Surveyors Identification Fees: |
| death only. | | | | (i) Values up to $500,000.00 = $1,500.00, thereafter, |
| Stamp Duty - Payment of Stamp Duty is governed | | | | 0.1% up to 1 million, thereafter, $1,000 per million. Plus |
| by the Stamp Duty Act. The stamp duty payable on | | | | Research and Title fee/charge of $400.00. |
| land is approximately 5.5% of the full value of the | | | | (ii) Properties in excess of 1 acre or Irregular |
| land/dwelling. | | | | Boundaries a traversing fee is added. Fee depends on |
| Certification of title: Once a property is registered it is | | | | length of traverse. |
| given identification by way of Volume and Folio | | | | (iii) If land is outside the corporate area $6.00 per |
| numbers in the Register Book of Titles. The original | | | | mile. |
| Title is kept at the Office of Titles and entries are | | | | 6. Valuation Fees: |
| made thereon whenever something affecting any | | | | Kingston Jamaica Corporate Area |
| interest in the land is brought to the attention of the | | | | Corporate Area: Cost $3.00 per 1000 of the market |
| Registrar of Titles. For example, a transfer, a | | | | value and $150.00 for travelling and incidental |
| mortgage, death of a part owner, grants of | | | | expenses. Minimum fee of $1,000.00 plus travelling |
| easement and so on. This is standard for all houses | | | | and incidentals $1,150.00 |
| for sale in Jamaica. | | | | Outside Corporate Area - (Beyond 15 miles from |
| The land owner gets the duplicate Certificate of Title | | | | Kingston Jamaica) 3.50 per 1,000 of the market value |
| on Registration. Duplicate Certificate of Title has to | | | | plus travelling @ $3.50 per mile minimum fee of |
| be submitted to the Registrar for endorsement of all | | | | $1,500.00 plus travelling. |
| transactions affecting the land. | | | | 7. Mortgage Costs: (Building Societies) |
| The Conveyance or Transfer of Houses In Jamaica | | | | (1) 1% application fee (Saver) |
| For Sale Exercise | | | | (2) 2% application fee (non Saver) |
| This normally begins either between seller (vendor) | | | | (3) Life Insurance - amount differs according to age. |
| and buyer (purchaser) or between either one of the | | | | NB. No longer will Compulsory Society take an |
| aforementioned parties and a Jamaica real estate | | | | assignment of Existing Policy. |
| dealer or Jamaica property agent. Purchaser or an | | | | (4) Mortgage Indemnity: 7% of sum being Insured |
| attorney should inspect the Duplicate Certificate of | | | | applies when Mortgage in excess of the standard |
| Title. This is vital as some homes in Jamaica for sale | | | | two thirds - 90% Mortgage. |
| come without sale agreements and hence no | | | | (5) Stamp duty on Mortgage |
| transfer might have taken place. A title proves | | | | (6) Registration Fees on the Mortgage |
| exactly who the owner of the land is. | | | | (7) Attorneys Costs |
| The usual form of Purchase and Sale Agreement | | | | (8) Valuation Fee |
| sets out inter alia:- | | | | (9) Surveyors Identification |
| (1) The legal names, registered address and gainful | | | | (10) First Month Mortgage Payment |
| occupation of the contracting parties. | | | | Mortgages: - $1.00 per 200 x 25% or 0.65% |
| (2) Full description of the house in Jamaica for sale - | | | | These outline all the costs associated with buying |
| including size or actual dimensions, registered location, | | | | houses for sale in Jamaica. It is important that both |
| and the identifying folio and volume numbers of the | | | | the vendor and purchaser understand the fees |
| Certificate of Title, in the case of both registered | | | | associated with this Jamaica real estate transaction. |