Title: Sandra Watson
1REAL ESTATE BOARDSPRESENTATION
For
JAMAICA MORTGAGE BANK SEMINAR
- Presented By
- Sandra Watson
- (General Manager)
2REAL ESTATE BOARDS REQUIREMENTS DEVELOPMENT
SCHEMES
Development is a business decision, so it does
not require Licensing just Registration
3RESTRICTIONS ON ENTERING INTO CONTRACTS
4A 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.
5Who 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.
6Comparison of Registration of Developers Over
Seven Years - Financial Periods 2001/2002 to
2007/2008
7REQUIREMENTS FOR REGISTRATION AS A DEVELOPER
8(No Transcript)
9PRESCRIBED FEES FOR DEVELOPERS
FEES ARE CURRENTLY BEING AMENDED
10Documents 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
11(No Transcript)
12Advertising a Development Scheme
A person shall not advertise a development
scheme unless the scheme is registered with the
Real Estate Board.
13Advertisements 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
14Advertisements 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.
15Interest Bearing Trust AccountIn An Authorised
Financial Institution for Purchasers Deposits
16Once 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. -
17(No Transcript)
18WITHDRAWALS 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.
19REMINDER
- 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. -
20THANK YOU