Whether you're buying a home in Kingston, Montego Bay, Mandeville, or returning home to build in Clarendon or Portland, navigating Jamaica’s real estate market can feel like learning a new language—especially if it’s your first time. Between contracts, financial jargon, and local property laws, the process can seem overwhelming.
But here’s the good news: you don’t need to be a real estate expert to feel confident. That’s what your Realtor is there for. However, understanding key terms can empower you to make informed choices, avoid costly mistakes, and move through the process with more ease.
“When buyers understand the basics, the journey becomes more than a transaction—it becomes a milestone they can own with pride.”
— Dean Jones, Founder, Jamaica Homes
This guide breaks down the most common real estate terms you’re likely to encounter when buying, selling, or investing in Jamaican property—and how they apply specifically in our local context.
Real Estate Terms Every Jamaican Buyer Should Know
1. Appraisal (Valuation Report)
An appraisal is a professional estimate of a property’s market value, often done by a registered valuer. In Jamaica, this is required by most banks before they approve a mortgage, and it helps ensure the property is worth what you’re borrowing.
Tip: Choose a valuator who is registered for your report to be accepted by financial institutions.
2. Deposit (Escrow)
Your deposit—also called down payment—is typically 10% of the purchase price, paid upon signing the Sale Agreement. This is held in escrow by the seller’s attorney or a neutral third party, and applied toward the total cost at closing.
3. Closing Costs
These are non-negotiable fees paid at the end of the transaction. In Jamaica, these may include:
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Stamp Duty (shared 50/50)
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Registration fees
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Legal fees (approximately 2–3%)
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Transfer tax (typically paid by seller)
Ask your attorney for a cost breakdown upfront to avoid surprises.
4. Agreement for Sale
This is the binding contract between buyer and seller once the offer is accepted. It outlines payment structure, deposit amount, contingencies, and a timeline for closing.
“Clarity in your Sale Agreement today saves confusion and expense tomorrow. Always read—and understand—before you sign.”
— Dean Jones, Coldwell Banker Jamaica
5. Contingencies
These are conditions that must be met for the contract to move forward. In Jamaica, financing and title verification are two common contingencies.
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Financing contingency: Protects buyers in case they cannot secure a mortgage.
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Title contingency: Ensures the seller has clear ownership of the property, free from encumbrances.
6. Title Search
A title search investigates the legal status of the land. It ensures that no liens, encumbrances, or other claims exist. This is essential in Jamaica, especially when purchasing family land or rural property.
7. Surveyor’s Report
This legal document shows the boundaries and structures of the land. It is required for mortgage approval, and often updated before closing. This report ensures there are no encroachments or boundary issues.
8. Mortgage Rate
This is the interest rate you’ll pay on your home loan. In Jamaica, rates vary depending on the bank and your risk profile, typically between 5.5%–8.5% JMD or as low as 4% USD for foreign currency loans.
9. Pre-Approval Letter
A pre-approval (also called pre-qualification) is a statement from your bank that says how much you can borrow. It’s not a guarantee, but it gives you a clear budget and strengthens your offer.
Additional Real Estate Terms in Jamaica
10. Strata Property / Strata Fees
If you’re buying an apartment or townhouse, chances are it falls under a strata corporation. This means you share common spaces (like a pool or garden) and pay monthly strata fees for maintenance.
11. Freehold vs. Leasehold
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Freehold: You own the land outright.
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Leasehold: You lease the land from a landowner (often for 49 or 99 years).
Always know which you’re buying—this can affect resale and mortgage eligibility.
12. Gazetted Land
This refers to Crown lands (government-owned) made available for lease or purchase. Often offered in rural or agricultural zones, this land may have special conditions and is not always titled.
13. Caveat
A legal warning registered on a property to indicate someone else may have a claim. Always check for caveats in the Title Office before buying.
14. Transfer Tax
In Jamaica, this is paid by the seller at 2% of the purchase price. Buyers do not pay this, but it affects how property is priced and negotiated.
15. Valuation vs. Market Price
The valuation is what a certified valuator believes the property is worth. The market price is what a buyer is willing to pay. These numbers don’t always match, especially in hot areas like Kingston or St. James.
“In real estate, price is temporary—value is timeless. Invest where the land speaks to the future, not just today.”
— Dean Jones, Jamaica Homes
16. Real Estate Board of Jamaica (REB)
The regulatory body overseeing all agents, brokers, and valuers in Jamaica. Always ensure your real estate professional is licensed by the REB.
17. Realtor® vs. Real Estate Agent
In Jamaica, not all agents are Realtors®. A Realtor® is a member of a professional association and adheres to a strict code of ethics. It’s worth asking before you hire.
Final Word: Real Estate Knowledge is Power
Understanding Jamaican real estate terms gives you more than just clarity—it gives you confidence and control. Whether you’re buying your first home in St. Ann, selling your family’s house in Manchester, or investing in a rental in Ocho Rios, this knowledge helps you:
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Negotiate wisely
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Avoid delays and pitfalls
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Feel peace of mind from offer to closing
“Owning land in Jamaica is more than a transaction—it’s a cultural legacy. Learn the language, and you unlock the keys to generational wealth.”
— Dean Jones, Realtor Associate
Let’s Talk!
If you’ve come across a real estate term that’s not on this list—or if something still feels confusing—don’t hesitate to ask a professional. A trusted Realtor can walk you through every step, from paperwork to keys in hand.
Bonus Tip: Keep a Real Estate Glossary
Print out this list or save it to your phone. It’ll come in handy when reviewing contracts, speaking with attorneys, or just staying in the loop during your homebuying journey in Jamaica.
Disclaimer: This content is provided for informational purposes only. It is not legal, financial, or investment advice. Always consult a licensed Jamaican attorney, bank, or real estate professional before making property decisions.