So the buyer has closing cost but hear what, the seller has closing cost too!
Hey, This is your Power Realtor, Cherine Anderson and today, we’re gonna explore what is included in the seller’s closing cost.
Now this is a government tax paid by to the stamp office by the vendor and it is generally 5% of the market value of the property.
Now Stamp Duty is a Government tax and it is generally shared equally between the vendor and the purchaser. Stamp duty is generally 4% of the market value of the property so as the seller you pay 2%.
Then there is the Registration Fee. The registration fee is .5% of the property. Now you’ll also share this fee with the purchaser, so you’ll pay .25% and the purchaser will pay .25% as well.
In Jamaica a seller must use an attorney for all real estate transactions. Now, the attorney, specifically the vendor’s attorney is responsible for the carriage of the sale. So your attorney will prepare the agreement for sale but they’re also responsible for submitting all these documents to the stamped and assessed and follow through with the process form start to the end. So they are very important in this process. Now, typical attorney’s fee is somewhere between 1- 3% of the purchase price of the property plus GCT however, there are additional charges.
So there are several things included in the seller’s closing cost. We couldn’t do all of them in part one so you know I had to mix it up in part two.
Hey, this is your Power Realtor, Cherine Anderson and I’m gonna tell you some other things that are located in the seller’s closing cost.
You pay half of the agreement for sale. Now generally when you hire your attorney, your attorney will be responsible for drafting the agreement for sale. The cost of that will be split between you and the purchaser for sale. Now this can range anywhere between $60,000 all the way up to 100, ooo , even more. Now the reality is it all depends on the property, it also depends on the conversation you have with the attorney but whatever the figure is, you’re only paying a half of it plus GCT.
Generally, your realtor assumes full responsibility for the marketing and showing your property with no money upfront. In some instances, marketing the property could actually cost more than the commission that the realtor receives at the end of the transaction. You know how Jamaicans could be. Sometimes the sale is aborted and if the sale is aborted often times the realtors ends up uncompensated.
Nonetheless, the commission is negotiated upfront with you and your realtor. However the realtor does not get paid until the end of the process so if the sale takes one month, two months, or even a year, the realtor doesn’t get paid until the end. The industry standard for real estate service is 5% plus GCT.
There are also your letters of possession, utilities, and any other miscellaneous cost. Plus if there are any additional fees your attorney will give you a breakdown.