Freqently Asked Questions
What is a Power of Attorney?
A power of attorney is a legal document by which an individual or company appoints or empowers another person or company to represent them or act in their place in respect of transferring land or other dealings. Power of Attorney regarding registered land should be in the form provided in the Registration of Titles Act. Once the power of attorney is drafted, it must be stamped at the tax office on 111 Harbour Street, Kingston and deposited at the Office of Titles (National Land Agency) if it is intended to be used for executing transfers and other documents to be submitted for registration. Please note that a Power of Attorney is invalidated on the death of the grantor.
How much do I need for down-payment?
Mortgage institutions expect between 5% to 20% for a down payment. It varies according to the lender’s requirements, and the type and length of the loan. Make a budget, set a goal, and stick with the plan. Saving and sacrificing is how most people come up with their first down payment.
What are my total closing costs?
Depending on the value of the property, as well as the Mortgage amount, a buyer is usually encouraged to have at minimum 10% of the value of the property, available for closing costs. The following should be used as a guide-
a. Down payment - this may be anywhere between 5-20% of the costs of the property.
b. Legal fees - depending on several factors the fee may be anywhere between 2-3% of property value.
c. Taxes - Purchasers are expected to pay half of Attorney fees, half of stamp duties ( $2,500), half of registration fees. Transfer tax is paid ONLY by the Vendor/Sellerd.
d. Mortgage fees- usually the most underestimated expense, these fees depend, entirely on the Mortgage institution and includes commitment fees, documentation fees & other miscellaneous fees. They may outrank all other fees in terms of numbers.
e. moving expenses