Builders Jamaica December - March 2022

OPINIONS
or any other professional acceptable to the Board.
If purchasers’ funds are utilised in the development
scheme, the developer is required to lodge a charge
(also known as a mortgage) on the title in favour
of the Board, to protect the purchasers’ payments/
deposits. The developer must also forward copies
of all prepayment contracts executed to the
Board and a report on the opening, lodgements
into, and withdrawal from the trust account.
The developer is also obligated, and therefore monitored,
to ensure that he/she advertises in compliance with the
Act, by providing all relevant information to prospective
purchasers prior to completion. Advertisement of
development schemes should include:
1. The total floor area of each type of building unit in
the scheme
2. The sale price of each type of building unit
3. The precise location of the land and its
physical features
4. The estimated time of completion of the scheme;
5. Whether contracts for purchase of units in the
scheme include an escalation clause;
6. When and from whom approvals for the scheme
were obtained;
7. When and where the plans, drawings and
specifications may be inspected
13. Proposed by-laws in the strata development
14. Estimated projected annual maintenance budget of
the strata development.
(The last four should be provided in writing to the
purchaser.)
It should also be borne in mind that a developer's
registration is renewed annually as long as he/she is still
in the business of development of land during that year.
Developers are also required to adhere to the Code of
Ethics prescribed in the law, as it relates to their professional
conduct, maintaining their office, avoiding conflicts
of interest, and claims to professional competence.
Where there are instances of breaches of any of the
matters specified above, the Board may take appropriate
action, whether through the courts, by conducting an
enquiry, declaring the development scheme failed,
and enforcing its charge over the development
scheme, or any other appropriate means to address
these issues after the conclusion of its investigations.
Prospective purchasers should seek legal advice prior to
the execution of a prepayment contract to ensure the
terms and conditions are fully understood. The terms
specified in these contracts or any breaches of such
contract may require the intervention of the court to
vary or enforce such conditions. In carrying out their due
diligence, purchasers should ensure that the real estate
developer and the development are registered with
the Board and the developer is allowed to enter into
prepayment contracts for the scheme in which they want
to invest.
8. The composition of the walls, flooring and roof
of each building
9. The name and address of the developer of the
scheme
10. The registration number of the Developer
11. List of common facilities to be provided for
the proposed strata development
12. Estimated maintenance cost each purchaser would
be required to pay, based on unit entitlement in the
strata development
Real Estate Board
www.reb.gov.jm
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