Hey learner! Welcome back. In the last video, we talked about the excitement of finding and financing a property. But now, we have to get serious. Buying land in Jamaica is not like buying a pair of shoes. It is a complex legal process with strict rules. If you do not understand these rules, you could lose millions of dollars, or find yourself in a court battle that lasts for ten years. Today, we are going deep into Titles, Zoning Laws, Tenancy Rights, and Taxes.Let us start with the most important document you will ever hold: The Land Title. In Jamaica, not all land ownership is equal. We operate under a system called the Torrens System, which means the “Registered Title” is king. If you see a Certificate of Title with a Volume and Folio number, that is gold. It means the government guarantees that you own the land. But, many people try to sell land using a “Common Law Title” or a “Deed of Conveyance.” This is much riskier. It is basically just a history of receipts and letters saying, “I bought this from Mr. Brown in 1980.” If you buy Common Law land, you have to hire a lawyer to upgrade it to a Registered Title, which costs money and takes time. And please, be careful of “Family Land.” This is land where the great-grandfather died without a will, and now fifty cousins all claim they own it. Never buy family land unless the sellers have gone to court and got a “Letter of Administration” or “Probate” to prove they have the legal right to sell it to you.Now, let’s say you have the Title. You own the land. Can you build whatever you want? Absolutely not. You are bound by two things: Zoning Laws and Restrictive Covenants. A Restrictive Covenant is a rule stamped directly onto your Title. It runs with the land, meaning it applies to you even though you didn’t write it. Common covenants include “Residential Use Only,” which means you cannot turn your house into a bar, a shop, or a church. Another common one is “One Dwelling House per Lot.” If you try to build a huge apartment complex on a lot restricted to a single family house, your neighbors can sue you.And do not think you can hide from the Parish Council. If you build without approved plans, or if you breach the zoning laws, the Municipal Corporation can issue a Stop Order. If you ignore it, they have the legal right to come with a bulldozer and demolish your structure. I have seen millions of dollars turned to rubble because someone thought they could outsmart the zoning laws. Always check the Covenants on the Title before you buy!Moving on to making money. Many of you want to be landlords. In Jamaica, the relationship between Landlord and Tenant is governed by the Rent Restriction Act. This law is very strict and mostly protects the Tenant. Listen closely: You cannot evict a tenant just because you are angry. You cannot change the locks, take off the front door, or cut off the water supply to force them out. That is illegal, and the tenant can sue you for damages. To evict someone, you must serve them a valid “Notice to Quit,” usually giving them thirty days. If they still refuse to leave, you must go to the Parish Court and get a judge to sign an eviction order. Then, the Bailiff removes them.Tenants, you have rights too. You have the right to “Quiet Enjoyment.” This means the landlord cannot just barge into your house whenever they feel like it. They must give you notice, usually twenty-four to forty-eight hours, before inspecting the property. However, you also have duties. You must pay your rent on time. If you damage the property, the landlord has the right to keep your Security Deposit to pay for repairs. My advice? Always, always sign a written Lease Agreement. It protects both of you.Finally, we have to pay the Piper. Let’s talk about Real Estate Taxes. There are transaction taxes when you buy or sell, and holding taxes while you own. If you are selling property, you must pay Transfer Tax. The government recently lowered this to two percent of the sale price. There is also Stamp Duty, which is a flat fee of five thousand dollars, usually split between buyer and seller. And critically, you cannot sell your property if you do not have a T C C, or Tax Compliance Certificate. This proves you have paid all your other taxes. No T C C, no sale.Once you own the property, you must pay Property Tax every single year. This tax is due on April first. The amount you pay is based on the “Unimproved Value” of the land. That means the tax is based on what the bare land is worth, not including the fancy house you built on it. You can pay this easily online at the Tax Administration Jamaica website. If you neglect this tax for many years, the government can place a Caveat on your title, preventing you from selling or borrowing against the land. In extreme cases, they can auction your land to recover the debt. Protect your legacy by paying your tax on April first.So, verify your Volume and Folio numbers. Respect the Restrictive Covenants. Treat your tenants legally and fairly. And keep your taxes up to date. If you do these things, your real estate will be a blessing, not a burden.Walk good, and see you in the next lesson!
