Real Estate Principles and Practices
What this domain covers
Real Estate Principles and Practices tests the day-to-day mechanics of brokerage in Jamaica: how properties are listed and marketed, how agency is created and disclosed, how offers are handled, and how deposits and commissions move through a transaction. It also tests basic property concepts-freehold versus leasehold, fixtures, and the difference between a valuation opinion and a sale price.
Core rules
- Agency should be documented in writing: the seller signs a listing agreement that states commission, duration, and whether it is exclusive.
- A salesperson must act through a registered dealer; the salesperson’s authority comes from the dealer, not from a personal client relationship.
- Deposits are client money. They are receipted, held in the dealer’s trust account, and not used as commission until the transaction closes or the contract allows it.
- Advertising must be accurate: no “approved plans” or “sea view” unless verifiable; state tenure, size, and material defects.
- Commissions are negotiable and should be agreed in writing. In Jamaica, commission is normally quoted plus GCT where the dealer is registered for GCT.
Worked example
A dealer agrees a 5% commission on a J$24,000,000 sale, plus GCT at 16.5%. Commission = 0.05 × 24,000,000 = J$1,200,000. GCT = 0.165 × 1,200,000 = J$198,000. Total = J$1,398,000. If the contract deposit is J$2,400,000, the deposit is not the commission; it is held in trust and applied at closing according to the contract.
Traps
Confusing a listing with a sale; taking a deposit into a personal account; acting for both sides without written disclosure and consent; giving legal advice on title; and treating an asking price as market value.