Real Estate Reform Initiative

All lending institutions will provide for pre-financing qualification approvals to enable prospective purchasers to go 'shopping' with a specified amount in mind. This would avoid the time wasting speculative purchaser who waits until he has a signed contract before seeking financing (a very common practice in Jamaica ), only to find he does not qualify. Assuming realtors take a much more significant role in negotiation and effecting a binding agreement, the role for attorneys can be effectively reduced to concluding the transaction by ensuring that both parties fulfill their contractual obligations. This should result in a reduction in attorneys' fees and greater justification of realtors' commissions. In order to put the vendor in a position to sell and enable the purchaser and the purchasers' attorney to their job effectively and quickly, the introduction of a vendor's kit is proposed. This will contain all of the information that a likely purchaser will need to assess the legal efficacy of the deal. Because this challenges the principle of caveat emptor , much consideration must be given to this proposal, but the firm believes that it will bring only serious vendors to the market. Lending institutions will open their panels to a wider selection of suitably qualified attorneys, in order that overlapping tasks of purchaser's attorney and lenders' attorney may be undertaken by the same lawyer, saving time and money. Until then purchasers should ensure that the attorneys of their choice are empanelled by their proposed lender or choose another lender. The time for title guarantee insurance has come: this will provide greater protection to purchasers and lenders who can on obtaining adequate cover, conclude an otherwise 'defective' transaction, certain that their interest will be secure notwithstanding. Currently, all parties have to wait until imperfections are cleared up which as we know, in spite of the best efforts of our agencies, can take inordinate periods of time. So far Nicholson Phillips has hosted two in-house presentations to realtors, and intend to conclude the presentations later this year with other interested groups. Lorna Phillips has met with Minister Dean Peart MP (Minister of Land and Environment) and some other members of his ministry with a view to providing a commentary on the proposals for planning and environmental law reform. A committee of co-professionals will spearhead the recommendations for changes to be made within the industry. [back]