15 COMMON REAL ESTATE QUESTIONS:
What is CIREBA?
What are strata fees and
The Cayman Islands Real Estate
what do they cover?
Board Association oversees the
They are like HOA fees. It is a
34 broker members that have
fee charged based on per sq. ft.
over 175 Realtors. All the brokers
of the condo. These fees have
and Realtors are a part of the
been set by a budget and the
MLS (Multiple Listing System).
cost is for insurance, building
CIREBA keeps their members
up to date with changing laws
and pool maintenance, strata
that pertain to real estate. That
management company, bulk cable
means you only need to work with
packages and common area water
one Realtor instead of calling 10
and power usage, to name a few
different real estate agents to see
10 different properties.
What happens if a seller does not
Who pays the Realtor fees?
pay his/her condo fees?
It is the responsibility of the seller.
Any outstanding strata fees
The seller pays the listing Broker
not paid prior to closing will be
and they split this with another
deducted from the seller’s funds
agent if they bring the purchaser.
and paid to the strata corporation.
What is stamp duty?
Your attorney will request from
Stamp duty is a one-time fee, paid
the strata Ex-Co or the property
to the government, of 7.5% of the
management company what is
purchase price and this applies
called a “Section 6.4” and this
across the islands. The stamp
will outline any fees not paid
duty is paid by the purchaser on
and also if there are any future
the sale of the property minus
assessments for the property.
the value of the used chattels/
Are there title insurance
companies or escrow companies
Are properties sold
who facilitate the closing?
furnished or unfinished?
No, we do not need title
Approximately 95% of all
insurance because government
condos and homes are sold
guarantees title. However, we
furnished. The 7.5% stamp duty
highly recommend that you hire an
is calculated on the price you
attorney to research the title and
paid for the property minus the
advise you if there are any liens, or
value of the used furniture. For
problems with the title. The cost
example, if you buy a home for
is between .55% and 1% of the
US$500,000 and the furniture
is valued at US$22,489, you
will then pay stamp duty on
Is there freehold land or
The majority of the land is
When do I get to see the strata
freehold, but there are some
docs? Otherwise known as HOA
parcels of land that is leasehold
or condos docs?
from the government. Leased
Also known here as Strata
land is uncommon, but ask your
by-laws, and similar to HOA or
CIREBA agent and also your
condo docs, that are registered
on the title for each condominium
complex. You can request to
Can anyone own property?
see them as a condition to the
Yes, there is NO restriction of
Offer to Purchase along with the
foreign ownership. You can own
latest AGM minutes and financial
up to 3 properties in your own
records for the strata corporation.
name. After that, you will need to
Owning part of a well-run strata
have a license and your attorney
or HOA will hold and increase your
can help with that.
Is there property tax in the
It’s $0.00, and that is not a typo.
There is just no property tax
charged on your property.
Can I get a mortgage at a
If you are a non-resident, you can
obtain a mortgage to purchase;
however a maximum of up to 70%
financing is available. Interest
rates fluctuate and can be
between 1% and 3% above the
U.S. prime rate.
Can I get Cayman Islands
residency if I buy property?
Short answer is yes. Please
contact a local immigration
attorney for more detailed
information. One such avenue is
an investment of CI$1,000,000 in
developed residential real estate.
This is one of the qualifications
needed for the application of a
Person of Independent Means.
Are there inspection and
valuation companies on-island?
There is the Royal Institution
of Chartered Surveyors (RICS
Valuation Standards) and if you
are obtaining a mortgage through
a local bank they will assign an
independent evaluation to value the
home based on recent past sales.
There are also home inspectors.
Ask your CIREBA Realtor for a list
of respected inspectors.
Can I buy land and build
my own dream home?
Yes! You can find that perfect
beachfront lot or a canal lot or an
estate. We have many qualified
architects and contractors. Ask
your CIREBA agent for a few
recommendations so you can