In Jamaica, property transactions can sometimes be carried out through informal agreements, where a buyer and seller come to terms without the involvement of a lawyer or real estate agent. This may involve verbal agreements or simple written contracts witnessed by a Justice of the Peace (JP). However, problems can arise when the seller decides to sell the property to someone else after the buyer has made a deposit or monthly payments. In such cases, buyers may wonder if they have any legal protection. This guide will explain the differences between a caveat and a lien, and how they apply in situations involving informal property agreements in Jamaica.
Informal Agreements in Property Deals
An informal property agreement is typically any arrangement made without the formalities of legal documentation prepared by a lawyer or registered real estate professional. While these agreements can be binding if there is proof, such as receipts for payments made, they often lack the robust protection…
