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
3 broker members that have
fee charged based on per sq. ft.
over of the condo. These fees have
Realtors. All the brokers
been set by a budget and the
and Realtors are a part of the
cost is for insurance, building
MLS (Multiple Listing System).
maintenance, landscaping
CIREBA keeps their members
and pool maintenance, strata
up to date with changing laws
management company, bulk cable
that pertain to real estate. That
packages and common area water
means you only need to work with
and power usage, to name a few
one Realtor instead of calling 10
things.
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.
Your attorney will request from
What is stamp duty?
the strata Ex-Co or the property
Stamp duty is a one-time fee, paid
management company what is
to the government, of 7.5% of the
called a “Section 6.4” and this
purchase price and this applies
will outline any fees not paid
across the islands. The stamp
and also if there are any future
duty is paid by the purchaser on
assessments for the property.
the sale of the property minus
the value of the used chattels/
Are there title insurance
furniture.
companies or escrow companies
who facilitate the closing?
Are properties sold
No, we do not need title
furnished or unfinished?
insurance because government
Approximately 95% of all
guarantees title. However, we
condos and homes are sold
highly recommend that you hire an
furnished. The 7.5% stamp duty
attorney to research the title and
is calculated on the price you
advise you if there are any liens, or
paid for the property minus the
problems with the title. The cost
value of the used furniture. For
is between .55% and 1% of the
example, if you buy a home for
purchase price.
US$500,000 and the furniture
is valued at US$22,489, you
Is there freehold land or
will then pay stamp duty on
leasehold land?
US$477,511.
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
attorney.
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.
property values.
Is there property tax in the
Cayman Islands?
It’s $0.00, and that is not a typo.
There is just no property tax
charged on your property.
Can I get a mortgage at a
Cayman bank?
If you are a non-resident, you can
obtain a mortgage to purchase;
however a maximum of up to 70%
financing is available. Interest
rates fluctuate and can be
between 1% and 3% above the
U.S. prime rate.
Can I get Cayman Islands
residency if I buy property?
Short answer is yes. Please
contact a local immigration
attorney for more detailed
information. One such avenue is
an investment of CI$,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
interview them.
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