Buying Property in Jamaica; What to Expect
For many years, our dream has been to own a home in Jamaica. I have to admit that we were woefully unprepared for the process. After three years and numerous rough days, we’ve finally done it. If you’ve ever considered buying property in Jamaica, here are the basics to consider.
Buying our house in Jamaica was one of the most frustrating and, yet, most fulfilling things my husband, Rob, and I have ever done as a couple.
It has been a roller coaster ride of emotions, ranging from pure bliss to blinding rage. Yeah, it can be that good and that bad. Miscommunications, delay after delay, and some crazy demands plagued our adventure. So, check in for a psych evaluation before you even begin. Your relationships, finances and mental status need to be in top-notch shape to tackle the monster we call “Buying a home in Jamaica.”
Our desire to buy in Jamaica and potentially spend our retirement years here started 6 years ago.
We came to Jamaica on vacation and fell in love with it. There were many factors involved. My health improved dramatically, to the point that I felt “like my old self.” The warmth of the Jamaican people drew us in. The slow-paced, more agrarian lifestyle took us back to our childhoods and soothed our frazzled nerves.
Maybe I’m just that sort of person who falls in love at first sight. I knew from the moment I met my husband, Robin, that I was going to marry him. And I did, three months later. At “my age,” I’ve experienced life. I’ve traveled all over the world. Obviously, I’ve defined exactly what matters to me and what I refuse to put up with. You could easily say that I know what I want. I fell in love with Jamaica in this same manner.
The difference between us and most people who think about retirement in the Caribbean is that we tried from the beginning to focus on the ways it COULD work.
Many people express the desire to do what we are doing but, when questioned, they come up with every excuse as to why buying property in Jamaica couldn’t work for them. We chose to say, “Why not? How can we make this happen?”
Moving away from friends and family, leaving steady jobs and careers and settling down in a third world country is not “the norm.” So, right from the get-go, it’s important to realize that only certain personality types will be successful in the transition. Who are these people and what makes them equipped to handle life in Jamaica? Let’s take a look at them.
I’ve noticed that the majority of my retired expat friends here fall into one of two categories.
Many people who decide that buying a house, or building one, in Jamaica is a viable option are very quiet, contemplative types. They enjoy the peace and quiet and a rather reclusive lifestyle. This isn’t to say that don’t get out and enjoy Jamaica, but they do it along the edges. You won’t see them at street parties or large gatherings.
The other group, the one I’ll admit that I belong to, I lovingly call the “social misfit club.” We can enjoy the quiet but we also love to interact and learn new ways of thinking, almost to the point of being anti-establishment. We like to live life “our way,” and most of us have been doing that our entire lives. Few of us have been entirely comfortable living within the conventional social norms.
We are the women who never truly fit the Susie Homemaker roll, even though we enjoyed it. They are the men who never found great comfort in the 9 to 5 world, preferring to do their own thing and be their own boss.
Most people feel free in Jamaica to “let their freak flags fly,” so to speak. Here, we can allow ourselves to, once again, be the thinkers, the artists, and the free spirits that we were born to be.
For many of us, starting a life in Jamaica is like emerging from a deep coma.
We didn’t realize we had been asleep until the awakening began and we saw…ourselves, someone we thought had been killed off long ago, buried under mountains of laundry and business suits.
Eventually, we learn to breathe again. Our minds relax and learn to be in the moment. Time is no longer our enemy because it almost doesn’t exist here. Like the days of old, life starts at daylight and settles down when darkness falls. Jamaicans cannot be rushed, so life slows down to an easy pace.
The people whom I find don’t make it here also fall into two basic categories. The first are people who need luxury and comfort.
After buying a house in Jamaica, they basically want the culture here to speed up and meet their expectations…those formed while living in fast paced, industrialized countries. These folks want service NOW. They can’t wait in long lines. Going without water, electricity or internet is tantamount to the stone ages in their minds.
The other folks that usually pack it up and move back home are the people who rush in without a realistic plan.
They come on vacation and stay in all-inclusive resorts. Deciding they “love Jamaica,” they decide to start looking for a home to buy. They continue to stay in high end hotels on their house hunting trips, never really getting their hands dirty with “real Jamaican life.”
Because they usually have resources, they build or purchase a lovely home, only to find out that the town water only runs three days a week. They laugh about the first power failure or two but start getting angry about no AC by the third one. The poor roads, general lack of services and interminable lines in government offices, banks and doctor offices drive them over the edge.
Discovering the brand-new refrigerator doesn’t keep food cold, they call in a “repairman.” When he finally shows up a week later, they realize that he has only the most basic knowledge and is of no use, even though they still have to pay him. The store they bought it from says it’s not their fault and refuse to cover it.
The steady stream of flat tires from the pothole filled roads becomes a nightmare. The neighborhood bar that springs up in the neighbor’s yard begins playing LOUD music until late into the night and steals their sleep.
The final straw snaps when goats wander into their yard, decimating the landscaping. Within hours, bags are packed, flights are booked and a realtor is called in to sell their “dream home.”
To say that it’s necessary to be “flexible” when buying a home in Jamaica and then actually living here is the understatement of the century.
You must add to that list being humble, forgiving, non-controlling and yet self-controlled. Things will transpire here that will test your metal in ways you never saw coming.
Rumors will fly, people will rip you off, and others may try to cause you emotional harm. It helps to arrive with skin tough enough to take insults. Yet, a heart soft enough to understand the plight of many of your new friends and neighbors comes in handy, too.
So, all of that said, if you are still thinking that life in Jamaica, or even owning a home in Jamaica, might be a good fit for you, keep reading. If not, thanks so much for playing along!
I’d like to preface the following information by saying that I’d HIGHLY recommend finding a long-term rental in the area you think you might like BEFORE you begin searching.
Spend as much time as possible in that area before taking the dive. It takes time to see the true flavor of a town or parish. The atmosphere in one parish will vary greatly from another. It’s much easier to give up a rental than it is to sell a house in what turns out to be a troublesome spot. There are also other advantages that I’ll get into later.
Put a lot of thought into whether the lifestyle, attitudes and Jamaican culture really suit you. You can read about our experiences here and here. Learn from our mistakes and save yourself a few gray hairs!
Let’s look at the technical side of buying property in Jamaica:
1. Find a property
While this may seem simplistic, it can be a rather convoluted process. Most people these days start the search online. The larger real estate companies have well-developed websites. They give you the opportunity to sample the market in many parishes around the island.
Many times, because Jamaica runs on “connections,” it ends up being a Jamaican friend or neighbor that leads you to the property that is the best fit. This is partly because they know you and can often discern what you’d like better than a total stranger.
It’s also because, obviously, Jamaicans know who is thinking about selling property in their area long before it goes on the market. This is one of the big advantages of renting first and getting to know people before you purchase.
2. Both parties need a lawyer
This can be tricky. Just as everywhere else, not every lawyer is created equally. You want a lawyer who is truly looking out for your best interests and seriously wants the sale to go through in a timely fashion. I got lucky as the realtor I had worked with recommended an amazing lawyer.
The lawyers handle writing up the offer. They are responsible for checking that the property has a clear title. All funds are distributed through their offices. Even paying the involved taxes and other fees are handled that way. A good attorney will work efficiently, instead of leaving paperwork sitting on their desks for ages, slowing an already slow process down even more.
The fact that many attorneys here will take their sweet time amazes me. They don’t get paid until the sale is completely over. One would think they’d be anxious to get their money.
3. Make your offer
Once you’ve come to a verbal agreement with the seller, run it all by your lawyer and then have the offer written up. He can give you advice as to the viability of the purchase, deal with issues like graves being on the property (very common and rather problematic these days) as well as protect you from crazy things a seller may suggest to a desperate buyer.
I actually took an extra step at this point. We had the property surveyed AND had it evaluated (appraised) BEFORE we even made an offer. Many pieces of land are shown with boundaries that are not official. Grandma cut off a piece of land that reached from the old almond tree to the big pile of rocks, if you get my drift.
In our case, we felt pretty comfortable with the price of the house because I’ve spent six months of the each of the last three years in this community. We had a good grasp on current value. But the evaluation and survey gave us peace of mind, knowing exactly what we were getting and that we weren’t overpaying.
Our seller (called a “vendor” in Jamaica) actually had an official copy of her title but we still had it searched to make sure there were no liens or other interests against it. Again, the lawyer did this for us.
4. Make the down payment and pay your share of the duty tax.
Once the offer is accepted and both parties have signed, it is considered legally binding. This is when a down payment, usually 10% to 20%, is sent to the lawyer. It’s also when your lawyer pays your half of the duty tax. The seller also pays half.
At this point, you would need to prove that you have the funds to purchase the property or begin the long, arduous process of financing through a bank. Buying our property in Jamaica via a “60 day, cash deal” took nearly four months.
Information on the internet and official Jamaican government sites will say it takes about 90 days to go through the finance process. The reality is that a financed purchase could take over a year. The trick is, the paperwork proving income, assets, etc can’t be over 6 months old. It’s common to have to send updated sets before the deal is finalized
5. Title is submitted for new registration.
In my case, the final payment was made simultaneously with this step. The seller lives in Canada. She was very paranoid about handing over the deed without the cash in her hand. We were nervous about sending her money without the title in OUR hand. It helped that we both had good attorneys.
This step also includes paying a small registration fee, split between the seller and the buyer.
6. Seller pays transfer tax.
The deal is considered to be complete at this point. Although most fees and taxes are split between the seller and buyer, the transfer tax is paid entirely by the seller.
7. Pay your lawyers (and the realtor, assuming one was involved.)
I’d like to add that the property we purchased was never listed through a real estate agent or office. We did hire a realtor to help walk us through the process.
She acted as an advisor to us and as a liaison between us and our lawyer. They were both in Jamaica and we were in the USA. It was often easier for her to make verbal contact with our attorney than it was for us.
Our amazing realtor, Undrea Mcleod, with Valerie Levy and Associates Realty, helped us find an official property evaluator and a surveyor. I also valued her opinion as to the current value and potential resell value (after renovation) of the property we chose. She gave unbelievable support.
Here’s a quick breakdown of fees and taxes involved in purchasing a property in Jamaica:
Stamp duty tax of 4%, split between seller and buyer
Title registration fee of .5%, split between seller and buyer
Legal fees of 2 or 3%, plus the general consumption tax on that fee (GCT is 16.5%)
Realtor fees are negotiable but usually run around 5% of a sale price (plus GCT)
This puts the total for you, the buyer, at between 4 and 6% of the property value.
There may be extra legal fees if the title was not free and clear. Many lawyers charge separately for the actual preparation of the sales agreement. They handle every aspect of the sale after the agreement is written up. This includes transferring the utilities over into your name. Don’t be tempted to handle it all yourself. This will more than likely end up costing you more in the long run.
So, there you go. It doesn’t sound that involved and, really, it is pretty simple. The hard parts are finding a committed realtor, locating a suitable property, securing a reliable lawyer and then being patient. Other than that, it’s a snap! Ha ha.
The best advice I can give is to let go of all expectations of as to time frames when going into this process. Take your time. Rent in the area for a while. Understand that many properties you explore may not have free titles.
Take whatever timeframes given by builders, lawyers and financial advisors and double it. Setting yourself up for the very slow, long-haul will help you to retain your sanity. People always talk about “island time” and it applies in triplicate when buying a property in Jamaica.
I’ll go more in-depth about “our story” about buying our house in a future post. Speaking with other expats, I’ve discovered our rather stressful experience is pretty standard.
I’ve laid out the most straight forward path towards owning a home here. However, as you know, life rarely runs in a straight line from where we are to where we want to end up. I was just at the point of giving up when a friend told me about the house we ended up buying.
I’ll be happy to answer any questions and give you any guidance I can. I’d love to help you realize your own dreams of owning a home in Jamaica or elsewhere in the Caribbean. Just ask.
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27 Comments
Ruth Cassell
Getting a title for a property is also a nightmare. It took us over 20 yrs to get the one for the property we have. But persistence paid off.
Jamerican
Was it a simple title transfer or were they making a new title where one didn’t previously exist? That’s a crazy amount of time to wait!
Ruth Cassell
There was no will left. Just a verbal one. Then property was to be divided and the person who was the executive of the property did not nothing until we came in 2014. Had to go to parish counsel constantly to get them to look at it and also to find out all the requirements to get the title. We had to barber green a road and get the land re- surveyed to show a cul-de-sac. We even had to drive and pick up a inspector to inspect the property. Had to get a valuation done as well. But persistence paid off. We have titles for the properties now.
Jamerican
Really, considering what you had to go through and where you started, 4 or 5 years isn’t too bad…especially for Jamaica. I’m coming to appreciate that you have to be persistent and yet patient.
jclarke
Great, relatable info in this blog. What area of the Island do you live?
Jamerican
Thanks so much! I’m on the south west coast, in Treasure Beach. It’s a fishing village that has turned to low key tourism to stay alive. We love it there.
jclarke
Awesome! My husband is from the Whitehouse/Petersville area…..not far from where you are. He has been building a house there for quite some time. We get back about 1x/year, right now.
Jamerican
Sweet! Can you email me with more info about your efforts with Hope for Jamaica? I have an idea that might help you out.
jclarke
Sure! Can I get a direct email address? You can check out our website: http://www.hopeforjamaica.com, our Facebook page: http://www.facebook.com/hopeforjamaica, and our Instagram page (Hope For Jamaica). Our website has some info on how we started, and what we have done thus far.
Jamerican
valerie@jamaicanatheart.com will work fine. Thanks!
Willism McKenzie
Very interesting to get an immigrant’s point of view. I am a native born and agree with most, if not all of what is said. What I do know is that Jamaica could become a paradise for retirees if only our Developers and Financiers would bring themselves to appreciate the spending power of this set of people. All we want is a safe, secure, gated community complete with homes that have a flexible purchase plan without being predatory like a so called “reverse mortgage” arrangement!
Jamerican
I agree wholeheartedly. It’s totally foolish to ignore the economic impact retirees could have on Jamaica.
The constant comment I get from friends and family is questioning the crime problems.
What I’d like to see is a Jamaica where people didn’t have to live behind bars and gates. I feel like generations of the hardworking, educated natives have left to live abroad. Who is left? Imagine if they came back en mass, with their moral codes, grasp of the justice system and their finances. Could they turn the tide?
I feel like so many people here have given in to the idea that it’s impossible to get crime under control and so they join in with the mindset, even if only in small “scams” to rip people off.
In my humble opinion, and based on my experiences, it’s not just a brain-drain situation. It’s a morality and self-control drain issue. We need the hardworking Jamaican expats to come back willing to take their country back from the criminals. They could help bring Jamaica back to her former glory. It is paradise, just waiting to be polished up and enjoyed. ❤️.
William
I’m a returnee of some 40 years passed and am fully settled though not having accomplished as much as was possible. My mistake was in not engaging the advice of suitable recognised mentors. I realise I relied too much on my own instincts. Am about to address that deficiency at this stage of old age (76) but at least hope to influence younger persons wishing to take the plunge!
Jamerican
I’m sure you have a lot to offer! It’s never too late to get involved.
William
I fully intend to expand on my ideas by starting a webpage. Challenge for me is not being familiar with the process of setting up the site. Will wecome an input from any source with knowledge of how and where to start.
Jamerican
Email me through this site and I can help you figure it out.
Nick Jensen
My wife and I are looking at property in jamaica. We have a couple lots that we are very interested in one for sale the other lease. Is leasing land a good or bad idea. They told us we can build and do whatever we want on the land. And we can buy it later if we want. What are pros and cons to leasing property in jamaica. Is it a good idea or not
Jamerican
Hello Nick.
Great question! I’d highly recommend that you purchase property outright if at all possible, rather than leasing. This is especially important since you are thinking about investing in a building. Many foreigners have lost great sums of money in these types of deals. It goes something like this: You build your home and everything goes well for a bit. Then Auntie Julie returns from England and tell you to get off “her” land. At this point, you discover that the people you were dealing with do not have exclusive rights to what is actually “family land.” There are tons of properties in Jamaica with no formal title/deed. It’s a situation fraught with terrible outcomes.
Even if you decide to purchase land, hire an attorney and have him do a title search to make certain that the person “selling” is actually the legal owner. Sellers will often tell you to go ahead and purchase and they will “help you” get a title to to your portion of their land. Make sure the part you want is subdivided off and has its own title before any money exchanges hands. I know many people who have been waiting for many, many years to get their title due to these sorts of promises.
Sadly, I have personal experience with both of these scenarios.
When I first started spending my winters in Jamaica, I leased a house. After the first few times I met with the owner, she told me she felt comfortable with me and wanted to sell me the house. Within a year, she told everyone that the house was “mine.” I did all repairs, put in a new bathroom, installed a solar hot water tank and lots of other expensive things.
A few years down the road, when my husband flew down to “sign the deal,” she told us that the price of the house was now FOUR TIMES the legal value (she knew it, too, because we had it legally appraised.) I hung in there for another year, hoping she would come to her senses. Instead, I got a letter from her family telling me to vacate the premises and that the property wasn’t for sale. Since that time, I’ve found out that the lady I was dealing with was only half-owner of the property and couldn’t sell without the other owner signing off, which wasn’t going to happen.
Before my eviction date rolled around, I found out about a suitable house that was being listed for sale, flew down, put in an offer, which was accepted and was told I could move my belongings out of the leased house until the deal was finished. A few months later, as my lawyer dug in and did a title search, it was discovered that the house wasn’t even in the sellers name. It was in her mothers name and her brothers name…a mother who was senile and a brother who didn’t even KNOW she was putting it on the market. Obviously, that deal fell through with a resounding thud. Sigh.
You can bet your bottom dollar that when I found the house we ended up buying, my lawyer made CERTAIN that the title was correct and that everything was as it seemed. That deal actually went through quite smoothly and we had our own title within a matter of months.
Additionally, I’d like to add, if you DO purchase property and build on it, make sure that any building is done only while you can be physically be there. It’s a very common practice to have someone abroad sending money for building supplies, labor costs, etc and then arrive in Jamaica to find nothing has been done at all. Some will even send photos of building sites and work being done…but it turns out to be someone else’s property and building! So build in stages, if you must, but don’t have any work done when you are absent. Many people have the foundation built one year, the walls put up the next, etc, etc, within the timeframe that they are able to be onsite.
I haven’t yet written a post about the hell I went through dealing with contractors and laborers just in the “small” job of rehabbing the old house we purchased. There’s a reason for that. I suffered a great deal of PTSD from that experience. People assumed I had deep pockets and continually tried to rip me off…and so much more. And many of them were my “friends!” I’m trying to let the stress settle before I describe what happened because I don’t want it to “sound” as negative as it was. That took place more than a year and a half ago. Follow along until I post about it and you’ll understand more of what I’m talking about.
Anyway, I hope that gives you what you need. Sorry that it’s so long but it’s actually a big subject.
C
Ms Jamerica can you provide the name of your attorney and realtor. I too am searching there. Looking to retire soon and have visited several times trying to get a feel for different locations or parishes. But have ran into road blocks. I want this to be a smooth process but after reading your message. I am even more afraid. I have planned this for.at least 20 years and want to make sure I am crossing my T’s and dotting my I’s. Can you email me that information pls cynthia.fox@opm.gov
Jamerican
Check your email. 🙂
ED
Hi,
Did you have to find your own lawyer or did you realtor assists you with a lawyer?
Jamerican
Hello, We bought directly from the seller, meaning the house was never listed with a realtor. But a friend of mine who is a realtor did recommend the lawyer we used. At the very least, get a recommendation from someone you trust as all lawyers are NOT created equally in Jamaica.
henry dyer
Hi !! a very timely read for me..saw a property nearly 2 years ago and had an offer accepted..i as told the title was in the name of the deceased husband and the wife, vendor, was gonna get it changed and we could go ahead…finally, now being told we are just waitng on the printed copy and can then proceed..my question is, what does my lawyer have to do now, and how long is that likely to take..on the plus side, its dragged on so long that i’ve almost now able to buy cash so may not have the extra work of getting a mortgage ..cant wait..
Jamerican
That’s awesome! Have you gotten your TRN (Jamaican government tax number)? Did your lawyer do a title search? You’ll want him/her to make sure everything is done correctly in that department. You should end up with a legal survey, with boundaries clearly marked, the title and the right to put all utilities into your name. Use the lawyer for the transfer of all monies as well. If doing it as a cash sale, as we did, it only takes a few weeks to finalize the sale. (If getting a mortgage, it can take up to a year.) Then it will take a matter of months for the title to be switched into your name, but you will own the property once the payment is made to the seller. The lawyer will pay the various taxes and government fees on your behalf as part of their service. Congrats! I hope it’s everything you are hoping it will be.
RYAN
I have been visiting Jamaica for well over a decade now. I have a good friend in St. Mary that has a plot of land I plan to purchase. The land was surveyed and a new title was issued in the past 6 months. The biggest issue I am encountering is locating a lawyer for my representation. Would you have any recommendations to locate a good lawyer? Also what would be the best method for a cash sale? Should I carry the funds down or would a bank transfer be the best?
Thank you, Ryan
Jamerican
We did a bank transfer and I think that’s probably the best plan. It leaves a great paper trail, among other things.
As for lawyers, send me an email. I’ll check with the lawyer I used and see if he can recommend someone for you.
Best of luck to you. It sounds like you are going about everything properly and it should be a success!
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