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What’s included in the seller’s closing cost part 1 and 2 (PT19)

What’s included in the seller’s closing cost part 1 and 2

TRANSFER TAX: This is a government tax paid to the stamp office by the vendor. It is generally 5% of the market value of the property.

REGISTRATION AND STAMP DUTY: Stamp Duty is a Government tax and it is generally shared equally between the vendor and the purchaser. Stamp duty is 4% of the market value of the property and as the seller you only pay 2%.

There is also the Registration Fee, which is 0.5% of the value of the property. You also share this fee with the purchaser so you’ll pay 0.25% and the purchaser will pay 0.25% as well.

ATTORNEY’S FEES: In Jamaica a seller must use an attorney for all real estate transactions. The vendor’s attorney is responsible for the carriage of the sale. They are responsible for preparing the sale agreement as well as submitting the documents to the stamped and assessed and to follow through with the process from start to end. Typical attorney’s fee is somewhere between 1-3% of the market value of the property plus GCT.

½ of SALES AGREEMENT: Your attorney is responsible for drafting agreement for sale. The cost of that will be split between you and the purchaser equally. Now this can range anywhere between $60,000 all the way up to over $100,000 but the reality is it depends on the property, it depends on the conversation that you have with your attorney. Whatever the figure is, you’re only paying a half of it plus GCT.

REALTORS FEES: Your realtor assumes full responsibility for marketing and showing your property with no upfront money. In some cases the cost of marketing the property could actually cost more than the commission that the realtor receives at the end. Sometimes the sale is also aborted, and oftentimes, the realtor’s effort is often 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. The industry standard for realtor services is 5% of plus GCT.

MISCELLANEOUS CHARGES: Letters of Possession, utilities, and any other miscellaneous cost. Plus if there are any additional fees, your attorney will give you a breakdown.

 

Need more information? Get all the details in our free ebook, How to Buy an Apartment or Condo in Jamaica.

Need help finding your new home or office? Give us a call at +18765139222 or email me at cherine@mypowerliving.com

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