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Website design By BotEap.comThe Jamaican Real Estate Act and regulations have detailed provisions imposing liability on licensees (principally) and the seller to account for monies related to the disposition or acquisition of Jamaican land received for any other requirements prescribed for applicants in general. However, the Board is not obligated to approve the applications even of said professionals and must verify the capacity and experience of said person or may provisionally grant said application. It should be noted that, in addition to the special provisions for these “experienced” professionals, other provisions of the Law apply to them as to “new” applicants. This mandate has serious implications for homes for sale in Jamaica by sellers.
Website design By BotEap.comdevelopment schemes
Website design By BotEap.comThe regulation of transactions in development schemes is one of the main objects of the Law. It defines the terms “development scheme” and “developer” and provides for the registration of developers; however it also describes the circumstances in which a person is required to register as a developer, and these are:
Website design By BotEap.com1) When the number of lots or batches provided for in the scheme exceeds five
Website design By BotEap.com2) When the number of strata lots comprising building units in the scheme exceeds five
Website design By BotEap.com3) When the person developing the scheme has carried out another development scheme within the previous 24 months.
Website design By BotEap.comIn particular, a seller who enters into a prepayment contract in breach of specified conditions is subject to the buyer terminating the contract and recovering the money paid together with interest, even if the seller has not committed any other breach of contract. This is a crucial point for houses for sale in Jamaica.
Website design By BotEap.comtrust accounts
Website design By BotEap.comThe primary obligation of any developer as a seller under a prepaid contract is to account for funds received from any buyer pursuant to such contract.
Website design By BotEap.comConsequently, the developer is obliged to:
Website design By BotEap.coma) Deposit the money of the prepaid contract in a fiduciary account in an authorized financial institution.
Website design By BotEap.com(b) Report each arrangement of such monies to the Board.
Website design By BotEap.comThe Act prescribes procedures and obligations with respect to money in trust accounts. The Act also declares that the real estate professional who owns the client’s money is a trustee of said money on behalf of:
Website design By BotEap.coma) The one who has the right to receive it or to order its payment, for example, the seller whose goods the seller has sold.
Website design By BotEap.comb) The person who may be entitled to it in a given event, but the professional must have received it as an interested party (that is, having knowledge that some decision or event is pending that would determine the right to the funds).
Website design By BotEap.comThe remedies available to the person entitled to the funds are extended by the creation of a trust, as they can take action against the relevant practitioner for breach of trust. A real estate seller or dealer employed by a broker is released from this trust by paying the funds to the seller. Consistent with the trust relationship is the accounting and recording that is required of a real estate merchant or seller in connection with client money. The obligations that a merchant must fulfill with respect to customer money can be summarized as follows:
Website design By BotEap.com1. Payment of said money into a client account without delay, however, the funds need not be separated according to the client.
Website design By BotEap.com2. Keeping of accounts and records related to said money.
Website design By BotEap.com3. Explanation upon request of all matters related to said money.
Website design By BotEap.com4. Preparation of accounts on said monies and audit of said accounts.
Website design By BotEap.comThese are the basic rules, regulations and bylaws that guide homes for sale in Jamaica. It is critical that both sellers and buyers are aware of these laws and comply with them to the best of their ability.
