Sandra Watson

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REAL ESTATE BOARDSPRESENTATION
For
JAMAICA MORTGAGE BANK SEMINAR

• Presented By
• Sandra Watson
• (General Manager)

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REAL ESTATE BOARDS REQUIREMENTS DEVELOPMENT
SCHEMES
Development is a business decision, so it does
not require Licensing just Registration
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RESTRICTIONS ON ENTERING INTO CONTRACTS
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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.

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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.

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Comparison of Registration of Developers Over
Seven Years - Financial Periods 2001/2002 to
2007/2008
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REQUIREMENTS FOR REGISTRATION AS A DEVELOPER
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PRESCRIBED FEES FOR DEVELOPERS
FEES ARE CURRENTLY BEING AMENDED
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Documents To Be Supplied With Application

• 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 Boards website
• www.reb.gov.jm

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Advertising a Development Scheme
A person shall not advertise a development
scheme unless the scheme is registered with the
Real Estate Board.
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Advertisements Should State

• 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

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Advertisements Should State contd

• 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.

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Interest Bearing Trust AccountIn An Authorised
Financial Institution for Purchasers Deposits
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Once Pre-payment Contracts Have Been Entered the
Following Should Be Done

• 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 institutions 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.

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(No Transcript)
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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.

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REMINDER

• 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.

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THANK YOU