If you are selling, or planning to sell your property in Jamaica, arguably, the two most important things for you to do are (1) provide good title to the property, and (2) provide good value in the property. Here is our quick guide to doing so.
Assuming your property is registered land under the Registration of Titles Act, you ought to have, in your possession, or readily available to you, your Duplicate Certificate of Title (“Title”), which some refer to as your “original title”. You should ensure that you are actually registered on the title, or have other legal standing to deal with the Title, such as a Grant of Probate for, or Power of Attorney from, the registered owner. If you cannot find the Title, you will need to take certain steps to apply for a new one.
As an owner, you should be cognisant of any potential breaches on your Title. Any breaches or encroachments on your Title could affect your ability to sell it. If you are unsure of whether there may be a breach or encroachment on your Title, you should obtain a Surveyor’s ID Report.
Consider carrying out small improvements to your property to unlock value. Small works like a fresh coat of paint, minor landscaping, or replacing that old terrazzo tile can increase the desirability of your property. The more desirable your property, the more likely it is that you will be able to get your asking price. You should also consider staging your property for photos and/or an open house, which a realtor can assist you with.
Before you decide on the asking price for your property you should consult a licensed valuator to get a valuation report done, or a realtor for a more informal pricing guide. Pricing the property well plays a huge role in how quickly you will be able to sell it, if you price the property too high, you are likely to have it sit on the market with little to no activity or interest. If the property is an investment property, you should have a record of how the property has been performing financially, which can inform the value of the property, and which the potential purchaser may wish to see.
If you are selling the property furnished, or if you would like certain fixtures on the property to not be included in the sale, it is important that you make this clear in any advertisements, negotiations, and agreements, as early as possible.
For a less stressful and quicker sale, it is advisable to list the property for sale with a realtor, who will handle the marketing of the property, spearhead negotiations on your behalf, be on top of follow-ups, and help get the deal closed generally. Your realtor will likely encourage you to put up a “for sale” sign on the property, list it on the Multiple Listing Service (MLS), and place ads in local newspapers for maximum exposure.
It is never advisable to sell property without having your attorney, who should be knowledgeable and experienced in such matters, have the carriage of sale. Carriage of sale is the responsibility to have primary conduct of the sale, and to carry out the necessary steps such as preparing the agreement for sale, submitting the agreement and other documents to the various government entities, arranging the payment of any requisite government fees and taxes, and guiding the sale to completion.
Prior to selling your property, you should ensure your taxes, maintenance, water rates, and other outgoings are all up-to-date, or that arrangements have been made to ensure they are paid. The Stamp Office will not assess an agreement for sale without property taxes being paid up-to-date, or an undertaking for their payment. If the purchaser is obtaining mortgage financing, their mortgage provider will require proof that these items have been paid up before the mortgage can be approved.
If you have a mortgage on your property, depending on its terms, you may be required to provide notice to your mortgage provider that you intend to sell the property, and pay off the loan early, or otherwise potentially face an early repayment penalty.
If you were working with a realtor, they will assist you in handing over the property to the new owners, once the sale is completed. Your attorney will also prepare letters of possession that will inform utility companies such as the National Water Commission (NWC), Jamaica Public Service (JPS), and potentially your homeowner’s association or strata (if you have one), that the purchaser is now entitled to possession of the property.
By following these steps, and working with knowledgeable and experienced professionals, you can get the value from your real estate investment by taking care in its divestment.
