KINGSTON, Jamaica – Land title insurance in Jamaica, according to Earl Jarrett, General Manager, Jamaica National Building Society, is poised to boost profitability levels in the local real estate market and put Jamaica’s land management practices on par with that of developed countries.
Mr. Jarrett said that the initiative pioneered by NEM Insurance Limited, a JNBS subsidiary, in association with Caribbean Title Limited, would enable local realtors to enjoy the security of insurance which was previously the “purview of the selected few” overseas developers who have access to that product.
He was speaking at the launch of Title Insurance in Jamaica Tuesday (April 15) at the Jamaica Pegasus.
“There are many large transactions in Jamaica which are facilitated by title insurance, particularly those where the investments are coming from an international source, such as large hotel developments and high end resorts. These transactions are often facilitated by title insurance,” Mr. Jarrett informed.
A Title Insurance policy offers protection against claims resulting from various defects that may exist in the title to the insured parcel of land.
“Title Insurance will add value to the real estate sector in terms of time and cost, given the Government’s recent commitment to reduce transfer costs and lessen the bureaucracy in getting approvals for property developments,” said Mr. Jarrett.
Noting that secure property rights is a vital tool in poverty alleviation; Mr. Jarrett lauded title insurance as a key means of empowering poor people in our country to access financial services using unregistered land as collateral.
Mr. Jarrett said that there is an estimated 300,000 parcels of unregistered land in Jamaica, and stated that “although these lands are valuable capital assets, in their untitled state, they can not be leveraged as collateral to access loans to support business, education, health and investment.”
“Title insurance will help to regularise these lands owned under common law, transforming “dead capital” into useful assets,” he said.
The JNBS General Manager explained that with the expansion of our road network with projects such as Highway 2000, the North Coast Highway and the roads linking Montego Bay and Negril had opened up the vast interior of the country. He said this could be translated into tremendous opportunities for some Jamaicans.
According to Mr. Jarrett, “the value of lands adjoining these road networks are appreciating significantly, but unfortunately many landowners are unable to benefit directly from the enormous investment opportunities that arise because they have no titles.”
While encouraging these landowners to formalise their ownership, Mr. Jarrett acknowledged that “efforts to bring property into the formal system is sometimes frustrated by the many steps and financial hurdles that exist.”
He added that “persons overwhelmed” by the bureaucracy “often stall or abandon the process” or even “take shortcuts to their detriment.”
JNBS will accept the Title insurance policy provided by NEM in processing mortgages. The facility will be used to underwrite probable risks associated with common law titles, granting mortgage access to holders of common law titles.
Title Launch Reception
Earl Jarrett (right) , General Manager at Jamaica National Building Society alongside Ronald Graham (left), Chairman, Caribbean Title Limited and Garfield Knight (centre), CEO of Caribbean Title Limited discuss the recently launched Title Insurance product that will be offered in Jamaica by NEM Insurance Company Limited. Occasion a function on Tuesday April 15 to launch title insurance at the Jamaica Pegasus Hotel.
Earl Jarrett (right) , General Manager at Jamaica National Building Society informs Neville Henry of Nationwide Insurance Brokers about the Title Insurance product that will be offered in Jamaica by NEM Insurance Company Limited in association with Caribbean Title Limited. Occasion a function on Tuesday April 15 to launch title insurance at the Jamaica Pegasus Hotel.
Tuey Brady Murdock (2nd left), Vice President and Counsel of First American Title Insurance Company Limited discusses title insurance with Ronald Graham (3rd left), Chairman of Caribbean Title Limited. Occasion was the launch of Title Insurance in Jamaica at the Jamaica Pegasus Hotel (April 15). Keen on the discussion are Earl Jarrett, General Manager at Jamaica National Building Society and Chris Hind, Acting General Manager of NEM Insurance Company Limited, which will be offering the product in Jamaica.
