Jamaica tax office values land more than sales agreement

DEAR LEGAL WIZ,
In 2018, I placed my land on the market. It was valuated for JMD 6 million by a real estate company affiliated with my lawyer’s office.
My asking sale price was JMD 6.6 million and it was based the valuation conducted in 2018. The sale agreement was signed between the the potential purchaser and me in November 2020, but no final closing as yet.
Subsequently, I was recently made aware by my attorney that the property was recently assessed by the Stamp office for JMD 12 million. What are my legal standing? Would I be able to return to the potential purchaser and asked for more money based on the the recent valuation? Thank you for your valuable information.

Sunni

Dear Sunni,

Today’s response comes solely from Delroy Johnson, Attorney-at-law for over six years:
There should be a clause in the Agreement for Sale to take care of that and it should clearly state which party will pay for the excess Transfer Tax. No new agreement for sale cannot be drawn up at this point. Remember if the fees are not paid within 14 days it attracts a penalty of 100%. If there is no clause The agreed price should remain but they need to agree on how the excess tax will be paid.

Legal Wiz

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