Purchasing Home in the Cayman Islands

Purchasing a home in the Cayman Islands can be a straightforward and efficient process. This is especially true if you lean on a trusted real estate agent who can navigate the local market for you. Below, the Williams² team provides insights on the key steps involved.

1. 1. Find your (right) real estate agent This step may seem apparent, but it’s worth noting the significance of finding a reputable and qualified agent. Your criteria for selecting an agent should include: being registered with CIREBA, specializing in Cayman Islands properties, and having a proven track record.

      Do your homework by asking for testimonials from previous buyers or sellers. You can usually find testimonials on the agent’s or brokerage’s website or social media sites too. The agent you select is going to help facilitate how you wish to live your life in the Cayman Islands so finding an expert that matches your personality is a huge help. Williams², for example, lists the bios and personal interests of its 24 agents on its website to help potential buyers find a personality match. Meet the Williams² real estate agents to see which style is the best fit for you.

 

1. 1. Secure financing: While the Cayman Islands attracts wealthy individuals that can and will pay with cash in hand, most buyers – especially investors – will choose to finance a property. No matter the reason for keeping an open cash flow, any financing will need to be secured from one of the local Class A retail banks. Popular choices include Butterfield, Cayman National, PROVEN, RBC, Scotiabank and First Caribbean. All of the banks on island offer competitive mortgage options, but we suggest exploring all options prior to making your final decision.

 

1. 1. Make an offer: Once you have found a property you are interested in, you will need to make an offer – and quickly! Time is of the essence as properties do not stay on the market long in Cayman. Typically, all offers are submitted on a CIREBA Offer To Purchase Contract. Your agent will produce the offer and submit it to the vendor on your behalf. This is a key area where you will want a reputable and qualified agent that can act fast.

 

1. 1. Conduct due diligence: Before finalizing the purchase, it’s important to conduct full due diligence on the property. This may include obtaining a survey, title search, full MEP inspection, possibly a structural report and environmental assessment, review of strata by laws or covenants among other things. Your real estate agent will be a value resource in recommending professional service providers to conduct these assessments in a manner that fits your unique situation.

 

1. 1. Hire an attorney: In the Cayman Islands, it is important to hire a conveyance attorney to oversee the legal aspects of the property purchase. Your attorney will review the contract, ensure all necessary legal documents are in order, and advise you on the entire process to ensure you receive free and clear title on the property.

 

1. 1. Obtain a valuation: If you are financing the purchase, your bank will require an individual valuation of the property to determine the fair market value of the property and to support the mortgage financing.

 

1. 1. Pay stamp duty: Stamp duty is a one time government fee that is payable on the purchase of property transactions in the Cayman Islands. The Cayman Islands has no ongoing property tax, capital gains tax or inheritance tax so the stamp duty is a once off payment. The amount of duty paid is 7.5% of the purchase price of the property minus chattel/furniture value.

 

1. 1. Close the deal: Once all of the necessary steps have been completed and you as a purchaser are satisfied with all of your due diligence, you will be ready to close the property. This typically involves signing the a Land Transfer Document, paying the balance of the purchase price, and obtaining the keys to your new property. Your real estate agent will guide you every step of the way.

 

1. Register the property: Finally, you will need to register the property with the Cayman Islands Land Registry and pay the stamp duty within 45 days of purchase. This ensures that you have legal ownership of the property and protects your investment and guarantees you title to your property.

If you have questions on the process, our team has 24 agents on your side to help you live the life you want to live. Are you ready to stop searching and start finding? Meet the Williams² real estate agents.