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Buyer’s Closing Costs (PT7)

Looking to buy a home? Ever wondered what fees are included in your closing cost?

This is your power realtor Cherine Anderson with another Power Tip for today.

Here are 6 fees that are included in your closing cost.

 

  1. Stamp Duty.

This is 4% of purchase price.  But it’s shared equally between the purchaser and the vendor.  So as the purchaser you’ll only pay 2%

  1. Registration Fee

Now your registration fee is 0.5% of the purchase price. However, this is also shared equally between the vendor and the purchaser. So you’ll only pay 0.25%

 

  1. Legal Fees

There are two parts to this

  • The vendor’s attorney prepares the Sale Agreement. Now whatever the vendor’s attorney charges the vendor for preparation of the sales agreement, you’ll pay a half of this fee plus 16.5% GCT
  • Then you’ll also have legal fees for you attorney which could range between 1% -3% of the purchase price plus GCT

 

  1. Valuation Report and Surveyor Report

This is part of your due diligence. You want to ensure that if you are buying a property, let’s say its advertised at $10 Million Dollars, that its actually worth $10 Million Dollars, cause it’s could be worth more ( or less)

If you decide to take out a mortgage, your lender will require both a valuation and surveyor’s report. And, if the property is over 40 years old, you may be asked to provide a Structural Engineer’s report.

 

  1. Processing Fees for your loan. The bank is not going to give you money for free. So there are fees associated with processing your loan. This varies from lender to lender. So you want to make sure you do your research to ensure you are getting the best rate.

 

  1. Letters of Utilities and letter of possession

 And then there are your letters of utilities and possession which also attract a fee.

BEFORE YOU GO

Learn How To Buy An Apartment or Condo in Jamaica

This FREE (and highly resourceful) eBook will give you several tips and strategies to help you buy an apartment or condo.

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