IN GRANTING a loan, the National Housing Trust has a responsibility to ensure that there is adequate security for each loan granted.
The Trust requires an acceptable proof of ownership document as a means of securing each loan it offers.
Ideally, applicants are required to present a Registered Title (Certificate of Title) as proof of ownership of the property against which a loan is being secured.
A registered title is issued under the modern system of titling used in Jamaica since 1962. The body of law which governs this system is the Registration of Titles Act. This provides for the registration of the title itself and the recording of all actions, mainly caveats and liens which affect the title.
STRATA TITLES
The Registration (Strata Titles) Act of June 1969, was enacted to cater to the needs of persons who purchase property in condominiums (apartment buildings) and wish to secure mortgage financing for their individual units, using the unit as security for the loan.
A condominium is defined as a building, or group of buildings, registered under the Act, with two or more habitable units and involving joint ownership of the land on which the building(s) is sited, as well as portions of the building. The Act allows each owner to have a separate title which makes it easier for each individual to obtain financing to purchase or improve his/her individual unit.
COMMON LAW TITLE
The Trust will accept a Common Law Title where applicants are seeking loans for construction or for refurbishing or expanding a house.
The Common Law Title or Conveyance is a form of title issued for property registered under the old system of titling property from colonial times up to 1962. This system preceded the Registration of Titles Act. Common Law titles are recorded at the Island Record Office at Twickenham Park in St. Catherine.
PROOF OF OWNERSHIP
There are various documents used to establish proof of ownership which the NHT may accept as security for a construction or home improvement loan. These are:
Common Law Conveyance
Deed of Gift
Certificate of Compliance - usually issued by co-operatives, credit unions and the NHT
The above documents must be accompanied by the latest tax receipts and the tax certificate to verify that the person is registered on the tax roll as the owner of the property.
Contributed by the NHT
