No Comments

Buyer’s Closing Cost (PT7)

Are you looking to buy a home in Jamaica? Ever wondered what fees are included in your closing cost?

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

Stamp Duty: This is generally 4% of purchase price, but it is shared equally between the purchaser and the vendor. As the purchaser you’ll only pay 2% 

Registration Fee: 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%

Legal Fees: There are two parts to this

The vendor’s attorney prepares a Sale Agreement. Whatever the vendor’s attorney charges for the preparation of the sales agreement, you’ll pay a half of this fee plus 16.5% GCT.

Also, you’ll have legal fees for your attorney, which could be anywhere between 1% -3% of the purchase price plus GCT

Valuation Report and Surveyor Report: This is a part of your due diligence. You want to ensure that if you are buying a property that is worth the price. If it’s advertised at $10 million dollars, its actually worth $10 million dollars, because it could actually be worth more (or less)

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

Processing Fees For Your Loan: The bank is not going to give you money for free. There are fees associated with processing your loan. This varies from financial institution. Do your research to ensure you are getting the best rate.

Letters of Utilities and Letter Of Possession: And then there are your letters of utilities and possession which also attracts a fee.

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

No Comments

What Is A Breach? (PT6)

Does your apartment have a breach and what does this really mean? 

The only real way to confirm a breach is to seek the services of a commissioned land surveyor. They will do a surveyor’s ID report to confirm exactly what restrictive covenant was breached.

Let’s say your neighbor decided to extend the grilled patio at the back of your apartment because they needed more space to have a baby. Now Tom Jones from across the block decides that he’s going to sell. That means we could have a problem here. Any owner trying to sell a complex is going to have a bit of an issue because now there is a breach and this is a 300 thousand dollars problem.

Seek the services of an attorney to apply to the courts to modify that specific covenant.

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

No Comments

What Is A Restrictive Covenant? (PT5)

Does your apartment title have a restrictive covenant? Better yet what is a restrictive covenant?

Okay let me simplify, a covenant is like a promise to do or not to do something.

Now in real estate, a restrictive covenant is a clause on the property title that limits what the owner of the land can do with the property.

For example, a restrictive covenant may prevent you from building your boundary walls above 4 feet but you decided to take it to 8 feet as a security, you would be breaching that covenant. Or lets say you have an apartment and you wanted to turn it into a school or church, you could also potentially be breaching the covenant and this could be a 300 thousand dollars problem.

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

No Comments

Non-Payment Of Water Bill And Selling Your Apartment (PT4)

If your water bill is not paid and you owe it long enough, you may not be able to sell your apartment.

Most strata has one meter that goes into any complex and then you have sub-meters for all the apartments or the units within that complex. So, let’s say you forfeit on paying maintenance fee. If it is not paid and the strata cannot take care of their bills and the water will be turned off. This can eventually lead overtime to a run down apartment.

Think about that pregnant woman who lives on the 3rd floor or that old lady who is sick and can’t take care of herself. Water is life- remember that.

Also, if the complex has outstanding water bills, everyone in the unit will have problems selling. If you decide that after a year you are going to sell this place and get your money, it’s not going to happen. The maintenance will have to be paid up. Always remember, water runs with land. Your attorney will have to give an undertaking to clear this expense. The water bill must be cleared before you change ownership.

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

No Comments

What does my strata insurance cover? (PT3)

Do you know what is actually covered by your property insurance?

We’re speaking specifically to insurance that is wrapped within your maintenance fee. Well, let me break it down there are two types.

  • Insurance for the outside of the building (Common area).
  • Insurance for the inside of the building.

But I’m specifically speaking to what happens in a common area, you know, that insurance that you pay to your strata.

This is generally wrapped into the maintenance and it’s determined by the size of your apartment. The size or square footage of your apartment determines something called the unit entitlement.

If you are getting a mortgage to buy your apartment, this is extremely important because most financial institutions will not commit to a mortgage for complexes that are not insured.

 

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

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.

I do not want to buy an apartment