CAYMAN REAL ESTATE 101

You have probably purchased Real Estate before – but probably not here. Every jurisdiction is different, so in the space we have here we will concentrate on the differences between purchasing in North America, the UK, or Europe, and the Cayman Islands.

How do you find the right property?

The biggest difference between the UK & Europe and Cayman is the existence of a Multiple Listing System. Americans and Canadians have them and it is a central repository for listing information and sales data. Here it is run by the Cayman Islands Real Estate Brokers Association (CIREBA). Every CIREBA company (30) and every CIREBA agent (180) has access to all the CIREBA listings in Cayman (1992). So you only have to visit one Realtor to see anything and everything.

There is also a 300 page glossy colour magazine produced 3 times annually by CIREBA which showcases many of these listings. Then there is the CIREBA website (cireba.com) or the website of any of the member companies (eg. caymanislandsrealty.com).

But choosing a good CIREBA realtor and working with that person will be by far your best assurance of finding the right property.

How to make an offer?

Your realtor can advise at what % of the listing price sales are being made. They will also walk you through the CIREBA Offer to Purchase form which is often used in Cayman property transactions. You don’t need a deposit to make an offer but you will need 10% of the agreed price within a few days of acceptance to bind the deal. This deposit is held by the Vendor’s attorney or agent until closing. There are no Escrow Companies here. Closing periods vary but are generally 30-90 days.

What conditions are typical on a contract?

The most common is financing. Local banks will finance both locals and foreigners and it takes 30-45 days to get that done. You will need to provide tax returns, banking and professional references, a property appraisal etc. Most banks will provide you with a list of things they require.

When purchasing a Condo, you will want copies of the ByLaws, last years financial statements, and the minutes of the last Annual General Meeting. In the case of a House, you may want a structural survey (which will take 2-3 weeks) and copies of subdivision covenants if there are any.

For Land, you may want the seller to identify the boundaries.

What about Title you ask? In Cayman where our title system is basically the Torrens system, Government guarantees that the Land Register (which is a readily available public record) includes all title details. There is no need for Title Insurance here.

Do you need an Attorney?

Our title system is less complex than nearly any other jurisdiction, but Cayman’s Law is basically British with some local influence which is quite different from US or European Law. Unless you are well versed in British Law you will probably feel more comfortable having a local attorney do at least your first conveyance for you.

What are the closing costs

The only significant one is the Stamp Duty which is paid to Government on every transaction when new ownership is registered. It ranges from 4 – 7.5% of the value of the Real Property (not furnishings) and the rate depends on the location of the property and whether or not you are Caymanian. If you borrow there is also a 1 – 1.5% Stamp Duty on the mortgage amount. Stamp Duty is in lieu of annual property taxes of which we have none.

Anything else I need to know?

Over the past 28 years we have met thousands of people who were buying or selling property in Cayman. Almost every one was excited to be buying or sorry to be selling here. We have watched the kids in many families grow up during their many vacations here and Cayman was a memorable part of the fabric of the lives of each of these families.

But time passes, circumstances change, and vacation hideaways are sold. And when that happens, although it is bitter sweet for longtime visitors, besides the memories there is usually another bonus at the end – a healthy profit on the sale.

JC Calhoun is Senior Broker at Coldwell Banker Cayman Islands Realty, a 20 year member of the CIREBA Board, and President of the Coldwell Banker Franchise for the Caribbean and Atlantic Islands.