Meldam Company Limited - Helpful Hints

TIME FRAME FOR REAL ESTATE TRANSACTIONS

(A) CASH SALES

On deposit of 15% - 20% of the selling price, and upon signing of the sales agreement, the transaction commences
Stamp Office - approximately 3 weeks for stamping documents
If sales agreement indicates balance is payable on signing Registrable Transfer (as opposed to balance being payable on transfer of title),
then COMPLETION MAY BE ACHIEVED WITHIN 30 DAYS
This situation however, is highly unlikely and hardly ever occurs. A more reasonable time expectation is 90 days.

To accomplish a shorter time frame however, factors to consider:-

That all funds are in hand and available
- where are funds?
- ensure funds not tied up on deposit.
That vendor and purchaser are in the island
- if either is overseas, the requirement to send documents abroad adds considerably more time
That premises are vacant
- if tenanted, tenants require notice
- if monthly tenants, 30 days notice from the due date is required and should be served prior to due date
Purchaser's attorney to carry out title search before signing of sale agreement and paying deposit
If stamp office wants to value the property this can cause delay

(B) SALES CONDITIONAL UPON MORTGAGE

Realistically - consider 5 - 6 months

First confirm qualifications for mortgage - can you qualify?by yourself or by combining with other party/parties?acquire a list of all information and documents, which shall be required by mortgage company.
Ascertain the date of their meetings for approving applications. If you miss the date, their following meeting may not be held for a further 4 - 6 weeks.
It can take 45 days to receive a letter of commitment.
All funds must be accounted for before your attorney can provide his letter of undertaking to vendor's attorney.
This transaction may involve as many as four attorneys, one for the purchaser, one for vendor, one for your mortgage company, one for the company with current mortgage to be discharged. Documents have to travel back and forth extensively.
If stamp office wants to value the property this can cause further delay!

THUS ALTHOUGH COMPLETION MAY BE HOPED FOR IN 3 - 4 MONTHS, IT IS MORE USUAL THAT THE PROCESS TAKES 5 - 6 MONTHS.

PROCESSES IN THE SALE OF A PROPERTY

1. Taking instructions from the Vendor.

2. Taking details from the Purchasers.

3. Obtaining a copy of the Certificate of Title.

4. Doing a caveat search.

5. Preparing the Agreement for Sale and submitting same to the Purchasers = Attorney and in some instances, the Vendor, before submitting same to the Purchasers = Attorney.

6. Settling differences before the finalization of the Agreement.

7. Finalization of the Agreement and providing copies to the parties of the Agreement.

8. Sending the Agreement to the Stamp Office and obtaining a tax certificate and up to date water rates receipt.

9. Checking with the mortgage company to obtain a mortgage commitment.

10. Writing to the company holding the security to obtain the Certificate of Title and Discharge of Mortgage.

11. Preparation of statements of account for the Vendor and Purchaser.

12. Preparation of the transfer.

13. Cross-stamping the transfer.

14. Obtaining a letter of undertaking from the firm responsible for registering the mortgage.

15. Sending documents to the Mortgagor =s Attorney.

16. Preparing, stamping and registering the mortgage with the transfer.

17. Submitting documents to the Titles = Office.

18. Collecting the relevant Certificate of Title.

19. Submitting the same for payment.

20. Preparation of final accounts.

21. Paying off the mortgage, utilities if any and balance of sale price the Vendor =s Attorney.

Contributed by John G. Leiba
John.Leiba@DunnCox.com

ARE YOU PLANNING ON GETTING A MORTGAGE?
The figures in the chart below may assist you in determining beforehand, the price you can afford to pay for a property.

To estimate your monthly repayment of mortgage financing, consider e.g. : -
(a) If the institution from which you are getting the mortgage is offering say 15% rate on interest.
(b) If you want say 20 years to pay off the loan
(c) Look at where the two columns intersect in the chart below. The dollar amount shown is $13.17. This is for each $1,000 of mortgage.
(d) So if you are borrowing $4 million, the monthly mortgage payment would be: -

$13.17 x 4,000,000
1,000

= $52,680.00

OR

(e) If you are borrowing say $3 million to be to be paid back over 25 years at a rate of interest of 17% the monthly mortgage payment would be: -
$14.38 x 3,000,000
1,000

= $43,140.00

(f) Borrowing $3 million over 30 years @ 14.5 % the monthly payment would be: -

$12.25 x 3,000.000
1000

= $36,750.00

Thus if you can afford a maximum monthly repayment of $40,000, you may want to shop around for the best rates offered and opt to borrow for a term of 30 years instead of 25 years.

THEN, AFTER DOING YOUR CALCULATIONS, HAPPY HOUSE HUNTING!!!

AMORTIZATION CHART
MONTHLY PAYMENT PER $1,000.00 OF MORTGAGE
LENGTH OF MORTGAGE

Rate of Interest	10 years	15 years	20 years	25 years	30 years
10.00%	$13.22	$10.75	$9.65	$9.09	$8.78
10.25%	$13.35	$10.90	$9.82	$9.26	$8.96
10.50%	$13.49	$11.05	$9.98	$9.44	9.15
10.75%	$13.63	$11.21	$10.15	$9.62	$9.33
11.00%	$13.78	$11.37	$10.32	$9.80	$9.52
11.25%	$13.92	$11.52	$10.49	$9.98	$9.71
11.50%	$14.06	$11.68	$10.66	$10.16	$9.90
11.75%	$14.20	$11.84	$10.84	$10.35	$10.09
12.00%	$14.35	$12.00	$11.01	$10.53	$10.29
12.25%	$14.49	$12.16	$11.19	$10.72	$10.48
12.50%	$14.64	$12.33	$11.36	$10.90	$10.67
12.75%	$14.78	$12.49	$11.54	$11.09	$10.87
13.00%	$14.93	$12.65	$11.72	$11.28	$11.06
13.25%	$15.08	$12.82	$11.89	$11.47	$11.26
13.50%	$15.23	$12.98	$12.07	$11.66	$11.45
13.75%	$15.38	$13.15	$12.25	$11.85	$11.65
14.00%	$15.53	$13.32	$12.44	$12.04	$11.85
14.25%	$15.68	$13.49	$12.62	$12.23	$12.05
14.50%	$15.83	$13.66	$12.80	$12.42	$12.25
14.75%	$15.98	$13.83	$12.98	$12.61	$12.44
15.00%	$16.13	$14.00	$13.17	$12.81	$12.64
15.25%	$16.29	$14.17	$13.35	$13.00	$12.84
15.50%	$16.44	$14.34	$13.54	$13.20	$13.05
15.75%	$16.60	$14.51	$13.73	$13.39	$13.25
16.00%	$16.75	$14.69	$13.91	$13.59	$13.45
16.25%	$16.91	$14.86	$14.10	$13.79	$13.65
16.50%	$17.06	$15.04	$14.29	$13.98	$13.85
16.75%	$17.22	$15.21	$14.48	$14.18	$14.05
17.00%	$17.38	$15.39	$14.67	$14.38	$14.26

| Charges | Time Frames | Processes | Monthly Mortgage Payments

Vendors Costs (Approximately)
Transfer Tax (Full)	7.50%
Stamp Duty (1/2)	*2.75%
Registration (1/2)	*0.25%
Commission	5.00%
G.C.T. On Commission	0.75%
Approximate Sub - Total Cost	16.25%
Attorney's Fee	*3.00%
G.C.T. On Attorney's Fees	* 0.45%
Approximate Total Cost	19.70%

Purchasers Costs (Approximately)
Stamp Duty (1/2)	2.75%
Cost Of Agreement For Sale(1/2)	*0.20%
G.C.T. On Charge For Agreement Of Sale	0.03%
Registration Fee	0.25%
Attorney's Fee	*3.00%
G.C.T. On Attorney's Fees	0.45%
Approximate Sub - Total Cost	6.68%
If purchaser requires a mortgage	*3.00%
Approximate Total Cost	9.68%
*Percentage Variable GCT is 16.5% Of Fee Charged