Transfer taxes and stamp duties are fees attached to your fees when you engage in a transaction for a house for sale in Jamaica usually at a percentage value of the land. Usually the value corresponds to the selling price.
The transfer law states that the transfer tax is 7.5%. There is a $10,000.00 waiver where the land value is $150,000.00 or less. The type of house doesn’t matter. It is usually a misconception that Jamaican beach houses for sale attract much higher transfers. This is not true. However there are some exceptions to this Jamaican property tax.
Exception
1. Transfer of property by Jamaican Government and Local Authorities.
2. Transfer to government or Local Authority of Jamaican land for purposes such as highways and other reservations in sub-divisions.
3. Transfer by gift to a property institution approved for use exclusively for charitable purposes.
4. Spouse’s primary residence (Joint Tenancy or Tenancy in Common) In case of death only.
Stamp Duty – Payment of Stamp Duty is regulated by the Stamp Duty Act. The stamp duty to be paid on the land is approximately 5.5% of the full value of the land/residence.
Title certification:
Once a property is registered, it is identified by means of the Volume and Folio numbers in the Title Register Book. The original title is kept in the Title Office and entries are made on it whenever something affecting any interest in the land is brought to the attention of the Title Clerk. For example, transfers, mortgages, death of a shareholder, amenity grants and so on. This is standard for all homes for sale in Jamaica.
The land owner gets a duplicate of the Certificate of Right to Registration. A duplicate of the Title Certificate must be submitted to the Registrar for ratification of all transactions affecting the land.
Home Delivery or Transfer In Jamaica For Sale Exercise
This usually starts either between the seller (vendor) and the buyer (buyer) or between one of the above-mentioned parties and a Jamaican real estate dealer or Jamaican property agent. The buyer or attorney should check the Duplicate Rights Certificate. This is very important because some homes in Jamaica for sale come without a sales agreement and therefore no transfer is possible. A title proves exactly who owns the land.
The usual form of a Sale and Purchase Agreement stipulates among others:-
(1) Legal name, registered address and lucrative job of the contracting parties.
(2) Full description of houses in Jamaica for sale – includes actual size or dimensions, registered location, and folio identifier and volume number of Certificate of Ownership, for both registered Jamaican buildings and land. In the case of land with Common Law Title, size, description, boundaries and other relevant details.
(3) Purchase price – in words and numbers to avoid mistakes and misunderstandings.
(4) Solution – the effective date when the final payment for the transaction is anticipated to be collected and the full sale completed, i.e., transfers are made, checks and property rights are exchanged.
(5) Transfer fee – unless agreed otherwise, this usually states that each party must bear half of the Stamp Duty, Registration Fee and Lawyer Fees.
Jamaican real estate agent commission payment – paid on Completion of transfer of title and closing of the transaction.
Cost of buying and selling land
1. Transfer tax – 7.5% of market value (Vendor only)
2. Stamp duty – about 5.5% of Market Value
3. Registration fee – Approximately 2% of Market Value (or $2.00 per 1,000)
4. Attorney’s Fees – On Scale – Jamaica Bar Association (effective 1 June 1991)
5. Surveyor Identification Fee:
(i) Value up to $500,000.00 = $1,500.00, after that, 0.1% to 1 million, after that, $1,000 per million. Plus a Research and Title fee/fee of $400.00.
(ii) Property over 1 acre or Irregular Boundary, traverse fee added. The cost depends on the length of the traverse.
(iii) If the land is outside the company area $6.00 per mile.
6. Appraisal Fee:
Kingston Jamaica Company Area
Company Area: Fees $3.00 per 1000 of market value and $150.00 for travel and incidentals. Minimum fee $1,000.00 plus travel and incidentals $1,150.00
Outside Company Area – (Outside 15 miles from Kingston Jamaica) 3.50 per 1000 of market value plus trip @ $3.50 per mile minimum charge $1,500.00 plus trip.
7. Mortgage Fee: (Building Community)
(1) 1% registration fee (Savers)
(2) 2% application fee (non Saver)
(3) Life Insurance – the amount varies according to age.
Note the Mandatory Society no longer takes over the Existing Policy.
(4) Mortgage Indemnity: 7% of the Insured amount applies when the Mortgage exceeds the standard two thirds – Mortgage 90%.
(5) Stamp Duty on Mortgages
(6) Mortgage Registration Fee
(7) Lawyer Fee
(8) Appraisal Fee
(9) Surveyor Identification
(10) First Month Mortgage Payment
Mortgage: – $1.00 per 200 x 25% or 0.65%
It outlines all the costs associated with buying a home for sale in Jamaica. It is important for vendors and buyers to understand the costs associated with these Jamaican real estate transactions.