Sherry-Ann McGregor, Contributor

Mcgregor

Often when persons are advised to retain the services of a lawyer to handle real estate transactions, the advice is viewed with scepticism as though it is a scarcely veiled attempt to ensure that lawyers continue to collect legal fees.

I ignore the naysayer and repeat that advice, because the first and most dangerous pitfall in real estate transactions is a party's failure to ensure that he or she retains a lawyer who is experienced in handling conveyancing matters. The sound advice received when commencing such transactions and the guidance imparted throughout cannot be over emphasised.

Real estate transactions are very time-sensitive, so the precautions at each stage of the transaction can result in significant savings in time and costs.

Conduct a title search

It is always critical to obtain a copy of the most recent certificate of title to conclusively confirm ownership of the property, whether there is a mortgage or caveats lodged in favour of third parties.

The result of this search may alert a party to the fact that additional work may be required to complete the transaction. The following examples should be noted:

If the property is owned by two persons as joint tenants, one of whom is deceased, the co-owner's death must be noted on the title.

If the vendor's name has changed since the title was issued (e.g. as a result of marriage), an application to note change of name will be required.

Where the vendor has a mortgage on the property, that mortgage will have to be satisfied before the purchaser will be able to get the title registered in his or her name, so the mortgage company must be notified of the transaction.

Ascertain whether the original certificate of title can be located

If the original certificate of title cannot be located, a lost title application will have to be made to the Registrar of Titles to have the old title cancelled and a new one issued. This could take six to eight months to complete.

Where are the parties who will need to sign the agreement for sale?

If either the vendor or purchaser is overseas, this could delay the transaction, because some documents (e.g. the transfer) must be executed before a notary public, Jamaican consulate or high commissioner.

Are the property boundaries properly identified?

A purchaser is well-advised to obtain a surveyor's report to confirm that the property which one intends to purchase is the same as the one seen. Also, if there are encroachments on the property which is the subject of the transaction, these may need to be rectified before the deal can be concluded.

Are there tenants on the property?

If the purchaser requires vacant possession, a vendor must be proactive in ensuring that the necessary action is commenced to have reluctant tenants evicted.

There are still other items which may appear on a party's check list during the course of a real estate transaction; and they all help to ensure that the transaction runs smoothly and is concluded expeditiously.

Sherry-Ann McGregor is a partner and mediator with the firm Nunes, Scholefield, DeLeon & Co. Send feedback and questions to lawsofeve@yahoo.com.