Closing Costs

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1/26/20252 min read

Closing Costs for Buyers & Sellers in Jamaica

When buying or selling real estate in Jamaica, closing costs are an essential part of the transaction. These costs include legal fees, government taxes, and other necessary expenses that must be paid before ownership is transferred. Understanding these costs helps buyers and sellers budget properly and avoid surprises at the final stage of the sale.

Closing Costs for Buyers

Buyers in Jamaica should be prepared for the following expenses when purchasing a property:

1. Stamp Duty & Registration Fees

Stamp Duty – $5,000 ( shared between buyer & seller).
Registration Fee – 0.5% of the purchase price (Paid to the National Land Agency to register the property in the buyer’s name).(shared between buyer and seller)

2. Attorney Fees

Range: 3% of the purchase price plus GCT (15%)
An attorney is essential to handle the legal paperwork, title transfer, and ensure a smooth transaction.

3. Mortgage-Related Costs (If Financing)

Loan Processing Fee – Varies by lender, typically 1% - 3% of loan amount.
Stamp Duty on Mortgage – 0.625% of loan amount.
Commitment Fee – Some banks charge 0.5% - 1% of loan amount for securing the mortgage.
Life & Property Insurance – Required by most lenders to protect against loan default or property damage.

4. Valuation Report

Varies based on property value & location.
Required by mortgage lenders to confirm the property's market value.

5. Surveyor’s Identification Report

Varies based on property size & location).
Confirms property boundaries, encroachments, and zoning compliance (often required for mortgage approval).

6. Miscellaneous Fees

Strata Fees (If applicable) – Required for apartment or townhouse purchases.
Title Search Fee – May be needed if additional due diligence is required.

Closing Costs for Sellers

Sellers in Jamaica also have financial obligations when closing a property sale:

1. Real Estate Commission

5% of the sale price plus GCT (15%).
Paid to the real estate agent/broker for marketing the property, negotiating, and facilitating the sale.

2. Attorney Fees

3% of the sale price plus GCT (15%).
Covers preparation of sale agreement, title transfer, and legal documentation.

3. Transfer Tax

2% of the sale price.
Paid to the Government of Jamaica for the legal transfer of ownership.

Stamp Duty & Registration Fees

Stamp Duty – $5,000 ( shared between buyer & seller).
Registration Fee – 0.5% of the purchase price (Paid to the National Land Agency to register the property in the buyer’s name).(shared between buyer and seller)

4. Miscellaneous Costs

Property Tax Clearance Certificate – Required to ensure no outstanding property taxes before transferring ownership.
Strata/HOA Clearance Letter (If applicable) – Confirms that all maintenance fees are paid before selling a condo or townhouse.

Key Takeaways

✔ Buyers should budget an additional 5% of the purchase price for closing costs
✔ Sellers should expect to pay around 10% of the sale price in fees & taxes.
✔ Cash buyers may save on mortgage-related costs but still need to pay for valuation, surveyor’s report, and legal fees.
✔ Both parties should work with a qualified attorney and real estate broker to ensure a smooth transaction.