The split of closing costs describes who pays which charges when property changes hands. In Jamaica the division is largely a matter of custom, but it is not fixed by law for most items. The agreement for sale is what actually decides it, so any item can be moved from one side to the other by negotiation.
The customary division
- Transfer tax, charged at 2% of the price, is usually paid by the seller.
- Stamp duty on the transfer, a flat sum for transactions of J$500,000 or more, is usually shared equally.
- Registration fees charged by the National Land Agency, calculated on value, are usually shared equally.
- Agent’s commission plus GCT is paid by the seller who engaged the dealer.
- Attorney’s fees plus GCT: each side pays its own attorney. Where the vendor’s attorney prepares the agreement, a buyer may be asked to contribute to preparation costs.
- Mortgage costs, including the lender’s legal fees, valuation, stamp duty and registration of the mortgage, fall on the buyer.
- Property tax, strata fees and utilities are apportioned to the completion date, so each side pays for its own period of ownership.
Why the split varies
In a slow market a seller may agree to pay all of the stamp duty and registration fees to secure a buyer. Developers frequently advertise “no closing costs” or a reduced package, which usually means the costs are built into the price. Lenders such as the National Housing Trust may pay or finance some costs for qualifying contributors. A purchase price stated as “net” to the seller can mean the buyer bears everything, so the exact words matter.
Getting it right
Ask your attorney for an estimate of your total costs before you sign, not after. Overseas buyers in particular are often surprised that attorney’s fees in Jamaica are commonly quoted as a percentage of the price. The completion statement will show the final figures and how apportionments were worked out.
Practices differ widely abroad. In the UK, the buyer alone pays stamp duty land tax; in many US states sellers pay transfer taxes while buyers fund lender and title insurance costs.
Related terms: Closing costs, Transfer Tax, Stamp Duty, Registration fees and taxes, Completion Statement, Property closing costs.
Accurate as at October 2026. Tax rates are set by law and can change.
