The Procedures of Purchasing Property in the Cayman Islands
- Once you make a written offer and complete it (as purchaser), we present it to the vendor for their consideration. If the vendor wishes to make a counter offer, they do so on the same offer in their handwriting and initial the changes to the contract they have made. This is then presented to you for consideration. If you agree to their counter offer, then you need only initial where changes were made and the contract then becomes binding and the listing is then considered “pending”. You would then proceed to make the required deposit and work would begin on any of the conditions that were stated in the contract per Clause #5. (Conditions are usually financing, inspection of the property, etc). At this time, your agent would be in contact with your attorney (if you choose to use one, which is highly suggest) to let them know the current situation with regard to the contract. If financing is involved, the sales agent would also contact them to see if they need assistance with valuations, sales history, etc on the subject property.
- After all the conditions have been satisfied and are in writing to the vendor, the deposit becomes
non-refundable (but stays in the account in which it was placed) and a firm closing date is set. A "Search and Stay" is placed on the property’s land title at a cost of CI$50 (US$60.98 and paid for by the purchaser. The Search and Stay form ensures there are no outside interests in the property. Since Government guarantees all Land Titles (there is NO title insurance in Cayman), this is assurance that you are buying what is represented.
- At closing, the purchaser needs to have all funds available for the vendor and any other expenses - legal fees, utilities deposits, Strata (Association) fees, etc. The amount due to the vendor by the purchaser is written out in precise detail by way of Purchaser's and Vendor's Closing Statements. All parties involved (sales agents, attorneys, property managers) will work closely together to ensure the transaction is smooth, efficient and with no surprises on the day of closing. The sales commission is always paid for by the vendor and all items detailed on the closing statements are distributed at closing. All closing documents and Stamp Duty are then delivered by hand to the Land Registry Department at the Tower Building for processing. About 10 days later, the purchaser’s name will appear as the new owner of the title and this information is a matter of public record.
Other than Stamp Duty, you will owe no other monies to the Government for the entire time you own your property. Cayman has no capital gains tax, inheritance tax or any other form of direct taxation on property. The purchasing parties always pays the Stamp Duty.
Approximate Closing Costs borne by the Purchaser in addition to the Purchase Price:
- Search & Stay Registration CI$50 (US$60.98)
- Stamp Duty of 5%. This is calculated as follows: the net purchase price in US$ (less the value of furniture and fittings: “chattels”) is divided by 1.2 to convert to CI$, multiplied by the duty rate of 5%) and divided again by .82 to convert back to US$. The 5% duty is still in effect until further notice.
- Registration Fees (to get title in your name) CI$50 (US$60.98)
- Legal Fees (if applicable)- usually 1% of the value of the transaction (or some firms offer a flat rate)
- Banking Fees (if applicable) - usually 1% of the value of the loan (some banks charge less than that)
- Utility Deposits - phone, lights, water and cable TV, say- CI$600 (US$730.00). (Fees vary depending on whether your purchase is a home or condo)
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Buying in the Cayman Islands
FAQs
Moving Suggestion Checklist
The Procedures of Purchasing Property in the Cayman Islands
Stamp Duty
Tips for New Home Owners
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