Presentation on theme: "Presented By Sandra Watson (General Manager) JAMAICA MORTGAGE BANK SEMINAR For."— Presentation transcript:
Presented By Sandra Watson (General Manager) JAMAICA MORTGAGE BANK SEMINAR For
A Person Should Not Enter Into a Contract To Sell Units or Lots in a Development Scheme Unless: a)The vendor (seller) is a registered developer with the Real Estate Board; b)The land being sold is free from any mortgage or charge unless it is to construct the units and or to subdivide the land subject of the development scheme (mortgage cannot be for purchasing the land). c)All approvals for the development have been obtained and the conditions of these approvals complied with or will be complied with; d)The vendor (seller) has given the Board copies of all approvals: -Subdivision Approval -Building Approval and copies of all plans, drawings and specifications referred to in such approvals.
Who Is To Register as a Developer Any person who is subdividing land or building units in excess of five (5) in number or anyone who is now subdividing land or building units of whatever number who has subdivided land or built units of whatever number in the past 24 months.
Every person who proposes to carry out any development scheme (of the kind mentioned before) should before beginning the scheme : 1)Apply to be registered with the Real Estate Board 2)Pay the prescribed fees
PRESCRIBED FEES FOR DEVELOPERS FEES ARE CURRENTLY BEING AMENDED Application Fee: Schemes of 41 lots/units and over $50,000.00 Schemes of 21 to 40 lots/units $30,000.00 Schemes of 6 to 20 lots/units $20,000.00 Development Fee: For each unit/lot of a development scheme $1,500.00 Annual Renewal Registration Fees: Schemes of 41 lots/units and over $25,000.00 Schemes of 21 to 40 lots/units $15,000.00 Schemes of 6 to 20 lots/units $10,000.00
i)Copy of Title of the Land. ii)Copies of Subdivision and Building Approvals ii)Copies of Plans & Drawings iv)Bankruptcy Report & Police Clearance Letter (R.E.B. cannot register an undischarged bankrupt nor anyone found guilty of fraud and dishonesty. This applies to individual, company directors and secretary.) v)Copies of companies Memorandum & Articles of Association, Articles of Incorporation and Certificate of Incorporation; vi)Explanation of how the scheme will be financed. Registration information is available on the Real Estate Board’s website www.reb.gov.jm
The Real Estate (Dealers and Developers) Act allows for any person who is aggrieved by a decision of the Board to refuse an application, to appeal that decision in the Court of Appeal within 42 days after he is served with notice of the decision.
A person shall not advertise a development scheme unless the scheme is registered with the Real Estate Board.
1.The agencies from whom approvals for the scheme have been obtained and when they were obtained ; 2.When and where the relevant Plans, Drawings and Specifications may be inspected; 3.The total floor area of each type of building unit in the scheme; 4.The sale price of each type of building unit; 5.The precise location of the land and its physical features;
6.The estimated time of commencement and completion of the scheme; 7.Whether contracts for purchase of units include an Escalation Clause; 8.The composition of the walls, flooring and roof of each building; 9.Name and address of the Developer of the scheme.
A.All Deposits collected under pre-payment contracts should be lodged immediately into an authorised Financial Institution. The Board should be supplied with: i)The institution’s name, branch and account number for the Trust Account. ii)Reports of all lodgements into and withdrawals from the Trust Account. B.Supply the Board with details of pre-payment contracts to include: i)Purchaser(s) name(s); ii)Lot or unit number; iii)Amount deposited; iv)Total sale price; v)Contact information for purchaser(s) vi)a copy of each type of Contract entered into.
WITHDRAWALS FROM PURCHASERS’ DEPOSITS IN TRUST ACCOUNT CAN ONLY BE MADE FOR THE FOLLOWING: 1)To pay Stamp Duty and Transfer Tax; 2)At the completion of rescission of the contract; 3)To be used in the construction of the project under the following conditions: a)Where monies withdrawn never exceeds 90% of the value of the works on the ground as is certified by a Quantity Surveyor or an architect (This Certificate must be presented to the bank before withdrawals are done). b)A charge is lodged with the Registrar of Titles in favour of the Real Estate Board to protect Purchasers’ deposits.
REMINDERREMINDER PLEASE BE REMINDED THAT THERE ARE FINES FOR BREACHES OF THE ACT. SOME FINES ARE CHARGED PER DAY FOR EACH DAY THE BREACH CONTINUES. THESE FINES ARE PRESENTLY BEING REVISED TO MAKE THEM MORE PROHIBITIVE. THE REAL ESTATE BOARD IS ON THE “PROSECUTION PATH” IN LIGHT OF THE INCREASING NUMBER OF FAILED SCHEMES.