Charges | Time Frames | Processes | Monthly Mortgage Payments
JAMAICAN REAL ESTATE CHARGES
Vendors Costs (Approximately) |
|
| Transfer Tax (Full) | 4.00% |
| Stamp Duty (1/2) | 1.50% |
| Registration (1/2) | 0.25% |
| Cost of Agreement for Sale (1/2) | *0.20% |
| G.C.T. on Agreement for Sale | *0.04% |
| Commission | 5.00% |
| G.C.T. On Commission | 0.88%  |
| Attorney's Fee | *3.30% |
| G.C.T. On Attorney's Fees | *0.58% |
| Approximate Total Cost | 15.75% |
Purchasers Costs (Approximately) |
|
| Stamp Duty (1/2) | 1.50% |
| Cost Of Agreement For Sale(1/2) | *0.25% |
| G.C.T. On Charge For Agreement Of Sale | 0.04% |
| Registration Fee | 0.25% |
| Surveyor's Fees (see below) | |
| Attorney's Fee | *3.30% |
| G.C.T. On Attorney's Fees | *0.58% |
| Approximate Sub - Total Cost | * 5.92% |
| If purchaser requires a mortgage | *6.00% |
| Approximate Total Cost | *11.92% |
* Asterisk indicates that this percentage is variable * Surveyor's Fees may be in the region of J$35,000.00 |
|
(A) CASH SALES
- On deposit of 15% - 20% of the selling price, and upon signing of the sales agreement, the transaction commences
- Stamp Office - approximately 3 weeks for stamping documents
- If sales agreement indicates balance is payable on signing Registrable Transfer (as opposed to balance being payable on transfer of title),
then COMPLETION MAY BE ACHIEVED WITHIN 30 DAYS
This situation however, is highly unlikely and hardly ever occurs. A more reasonable time expectation is 90 days.
To accomplish a shorter time frame however, factors to consider:-
- That all funds are in hand and available
- where are funds?
- ensure funds not tied up on deposit. - That vendor and purchaser are in the island
- if either is overseas, the requirement to send documents abroad adds considerably more time
- That premises are
vacant
- if tenanted, tenants require notice
- if monthly tenants, 30 days notice from the due date is required and should be served prior to due date - Purchaser's attorney to carry out title search before signing of sale agreement and paying deposit
- If stamp office wants to value the property this can cause delay
(B) SALES CONDITIONAL UPON MORTGAGE
Realistically - consider 5 - 6 months
- First confirm qualifications for mortgage - can you qualify?by yourself or by combining with other party/parties?acquire a list of all information and documents, which shall be required by mortgage company.
- Ascertain the date of their meetings for approving applications. If you miss the date, their following meeting may not be held for a further 4 - 6 weeks.
- It can take 45 days to receive a letter of commitment.
- All funds must be accounted for before your attorney can provide his letter of undertaking to vendor's attorney.
- This transaction may involve as many as four attorneys, one for the purchaser, one for vendor, one for your mortgage company, one for the company with current mortgage to be discharged. Documents have to travel back and forth extensively.
- If stamp office wants to value the property this can cause further delay!
THUS ALTHOUGH COMPLETION MAY BE HOPED FOR IN 3 - 4 MONTHS, IT IS MORE USUAL THAT THE PROCESS TAKES 5 - 6 MONTHS.
PROCESSES IN THE SALE OF A PROPERTY
1. Taking instructions from the Vendor.
2. Taking details from the Purchasers.
3. Obtaining a copy of the Certificate of Title.
4. Doing a caveat search.
5. Preparing the Agreement for Sale and submitting same to the Purchasers = Attorney and in some instances, the Vendor, before submitting same to the Purchasers = Attorney.
6. Settling differences before the finalization of the Agreement.
7. Finalization of the Agreement and providing copies to the parties of the Agreement.
8. Sending the Agreement to the Stamp Office and obtaining a tax certificate and up to date water rates receipt.
9. Checking with the mortgage company to obtain a mortgage commitment.
10. Writing to the company holding the security to obtain the Certificate of Title and Discharge of Mortgage.
11. Preparation of statements of account for the Vendor and Purchaser.
12. Preparation of the transfer.
13. Cross-stamping the transfer.
14. Obtaining a letter of undertaking from the firm responsible for registering the mortgage.
15. Sending documents to the Mortgagor =s Attorney.
16. Preparing, stamping and registering the mortgage with the transfer.
17. Submitting documents to the Titles = Office.
18. Collecting the relevant Certificate of Title.
19. Submitting the same for payment.
20. Preparation of final accounts.
21. Paying off the mortgage, utilities if any and balance of sale price the Vendor =s Attorney.
Contributed by John G. Leiba
John.Leiba@DunnCox.com
ARE
YOU PLANNING ON GETTING A MORTGAGE?
The
figures in the chart below may assist you in determining beforehand, the price
you can afford to pay for a property.
To estimate your monthly
repayment of mortgage financing, consider e.g. : -
(a) If the institution from which you are getting the mortgage is offering
say 15% rate on interest.
(b) If you want say 20 years to pay off the loan
(c) Look at where the two columns intersect in the chart below. The dollar
amount shown is $13.17. This is for each $1,000 of mortgage.
(d) So if you are borrowing $4 million, the monthly mortgage payment would
be: -
$13.17 x 4,000,000
1,000
= $52,680.00
OR
(e) If you are borrowing
say $3 million to be to be paid back over 25 years at a rate of interest
of 17% the monthly mortgage payment would be: -
$14.38 x 3,000,000
1,000
= $43,140.00
OR
(f) Borrowing $3 million
over 30 years @ 14.5 % the monthly payment would be: -
$12.25 x 3,000.000
1000
= $36,750.00
Thus if you can afford a maximum monthly repayment of $40,000, you may want to shop around for the best rates offered and opt to borrow for a term of 30 years instead of 25 years.
THEN, AFTER DOING YOUR CALCULATIONS, HAPPY HOUSE HUNTING!!!
AMORTIZATION
CHART
MONTHLY PAYMENT PER $1,000.00 OF MORTGAGE
LENGTH OF MORTGAGE
|
Rate
of Interest |
10
years |
15
years |
20
years |
25
years |
30
years |
|
10.00% |
$13.22 |
$10.75 |
$9.65 |
$9.09 |
$8.78 |
|
10.25% |
$13.35 |
$10.90 |
$9.82 |
$9.26 |
$8.96 |
|
10.50% |
$13.49 |
$11.05 |
$9.98 |
$9.44 |
9.15 |
|
10.75% |
$13.63 |
$11.21 |
$10.15 |
$9.62 |
$9.33 |
|
11.00% |
$13.78 |
$11.37 |
$10.32 |
$9.80 |
$9.52 |
|
11.25% |
$13.92 |
$11.52 |
$10.49 |
$9.98 |
$9.71 |
|
11.50% |
$14.06 |
$11.68 |
$10.66 |
$10.16 |
$9.90 |
|
11.75% |
$14.20 |
$11.84 |
$10.84 |
$10.35 |
$10.09 |
|
12.00% |
$14.35 |
$12.00 |
$11.01 |
$10.53 |
$10.29 |
|
12.25% |
$14.49 |
$12.16 |
$11.19 |
$10.72 |
$10.48 |
|
12.50% |
$14.64 |
$12.33 |
$11.36 |
$10.90 |
$10.67 |
|
12.75% |
$14.78 |
$12.49 |
$11.54 |
$11.09 |
$10.87 |
|
13.00% |
$14.93 |
$12.65 |
$11.72 |
$11.28 |
$11.06 |
|
13.25% |
$15.08 |
$12.82 |
$11.89 |
$11.47 |
$11.26 |
|
13.50% |
$15.23 |
$12.98 |
$12.07 |
$11.66 |
$11.45 |
|
13.75% |
$15.38 |
$13.15 |
$12.25 |
$11.85 |
$11.65 |
|
14.00% |
$15.53 |
$13.32 |
$12.44 |
$12.04 |
$11.85 |
|
14.25% |
$15.68 |
$13.49 |
$12.62 |
$12.23 |
$12.05 |
|
14.50% |
$15.83 |
$13.66 |
$12.80 |
$12.42 |
$12.25 |
|
14.75% |
$15.98 |
$13.83 |
$12.98 |
$12.61 |
$12.44 |
|
15.00% |
$16.13 |
$14.00 |
$13.17 |
$12.81 |
$12.64 |
|
15.25% |
$16.29 |
$14.17 |
$13.35 |
$13.00 |
$12.84 |
|
15.50% |
$16.44 |
$14.34 |
$13.54 |
$13.20 |
$13.05 |
|
15.75% |
$16.60 |
$14.51 |
$13.73 |
$13.39 |
$13.25 |
|
16.00% |
$16.75 |
$14.69 |
$13.91 |
$13.59 |
$13.45 |
|
16.25% |
$16.91 |
$14.86 |
$14.10 |
$13.79 |
$13.65 |
|
16.50% |
$17.06 |
$15.04 |
$14.29 |
$13.98 |
$13.85 |
|
16.75% |
$17.22 |
$15.21 |
$14.48 |
$14.18 |
$14.05 |
|
17.00% |
$17.38 |
$15.39 |
$14.67 |
$14.38 |
$14.26 |
| Charges
| Time Frames | Processes | Monthly
Mortgage Payments