Buyers

Are you thinking about purchasing real estate in the Cayman Islands? Buying a home is probably the largest and most difficult financial and emotional decision you will ever make. However, RE/MAX Cayman Islands makes it easy.

The Cayman Islands real estate market is diverse and unique in many ways; therefore, it is important you are confident the broker or real estate agent in Cayman you have chosen will provide you with the most accurate market information. The agent should also be attentive to your needs and desires and help you make sound decisions. Whether you are looking to purchase your first home, a holiday retreat or Cayman Islands commercial property, a RE/MAX® Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing -- and beyond.

Buying property in the Cayman Islands is a relatively easy and uncomplicated process open to local residents and foreign investors alike. The real estate transaction can be completed in just a few days with the right guidance from a RE/MAX® Sales Associate and all the appropriate papers in place. Unique to Cayman is the 'one time only' property stamp duty (purchase tax). Whether you purchase a home or condo in the Cayman Islands, property owners do not have to pay annual property or sales taxes, inheritance or death tax.

Buying A Home in the Cayman Islands

Contact a Real Estate Agent

A RE/MAX® Sales Associate can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing - and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.

Get Preapproved for a Mortgage

Shop around for a mortgage with several lenders. Your RE/MAX® Agent can provide you with a list of banks that provide lending services. Contact several lenders and determine which one will give you the best deal. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Being pre-approved when dealing with a potential seller, gives you a distinct advantage, as he or she will know you're one step closer to obtaining an actual mortgage. It also avoids disappointment and saves you time as you won't be looking at properties out of your reach. Determine Your Price Range and Area(s) in Which You're Interested By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your RE/MAX® agent can help and provide you with information on Cayman's neighourhoods. Decide Which Amenities and Features You Must Have - and Which Ones Would Be Nice but not Necessary Make a list! How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? A Pool? Which features would you be willing to give up if you find the otherwise-perfect home?

Begin Testing the Market

Right here on remax.ky, you can find listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods. With Your Agent, Begin Seriously Looking at Homes Your agent can add to the list of homes you've already identified - including ones that have just come on the market. Look at homes with a critical eye - does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there? Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.

Make an Offer

When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted. At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.

Once Your Offer Is Accepted:

•  You'll be asked to submit an earnest money deposit that usually isn't refundable.
•  Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
•  Have the property professionally inspected.
•  If necessary, request repairs.
•  Obtain homeowner's insurance.
•  Contact utilities (phone, water, power, etc.).
•  A few days before closing, stage a walk-through.
•  Obtain a cashier's check for the down payment and closing costs.

At Closing:

•  Make sure the terms and conditions of the loan statement are correct.
•  Carefully read everything before you sign.

ENJOY YOUR NEW HOME!

The Stamp Duty (Rates of Duty Regulations) 2006

Regulations re-effective from 1 October 2009

Rates	Document Type	Affected Areas
7.5% Of consideration or Market Value, whichever is higher	Purchase Agreement Assignment Transfer of Land	Blocks OPY, 5D, 10A, 10E, 11B, 11C, 11D,12D,12E, 13B, 13C, 13E, 14BG, 14BH, 14BJ, 14CJ, 17A, 18A Blocks 5C and 12C where the parcel has water frontage, or is derived in the future from a parcel which has water frontage on 1 July 2006. Block 13D where the parcel has frontage to Eastern Avenue Block 13EH where the parcel has road frontage to West Bay Road, Eastern Avenue, or North Church Street
6% Of consideration or Market Value, whichever is higher	Purchase Agreement Assignment Transfer of Land	All other areas, including Cayman Brac and Little Cayman
4% Of consideration or Market Value, whichever is higher	Purchase Agreement Assignment Transfer of Land	All areas falling into the 6% Duty Rate, where the purchaser is Caymanian as defined in the Immigration Law (2003)
5% Of average annual rent or market rent, whichever is higher	Leases not exceeding 5 years in length (incl. any options to extend)	All areas. Unchanged from the existing Legislation. All written Leases must be presented for assessment of Stamp Duty, regardless of length. Leases of greater than 5 years are assessed at a higher rent. Refer to the Stamp Duty Law (2007 Revision)

First Time Caymanian Purchasers 'Caymanian' is defined by the Immigration Law (2007 Revision) as amended Subject to confirmation and conditions laid down by The Financial Secretary to prevent exploitation of this concession.

Rates	Document Type	Affected Areas
0% Of consideration	Transfer of Land	Applies to all areas where standard Duty rate is not 7.5% (see over) For bare land purchases up to CI $50,000 in value (providing an owner occupied house is to be constructed) For Houses, Apartments or other dwelling purchases up to CI 200,000 in value, for owner occupation
2% Of consideration	Transfer of Land	Applies to all areas where standard Duty rate is not 7.5% (see over) For bare land purchases above CI $50,000 in value but not exceeding CI $75,000 For Houses, Apartments or other dwelling purchases above CI $200,000 in value but not exceeding CI $300,000 in value, for owner occupation

This information should be used for general information purposes only. The actual amount of Stamp Duty payable on any document can only be assessed upon its submission to the Lands and Survey Department. The information provided is believed to be correct to the best of the author's knowledge, however in the event of any contradiction, The Stamp Duty Law and associated Regulations will prevail.

Closing Cost - Seller

Condominiums	Estimated Cost
Buyer's Attorney	Usually 0.5 - 1% of purchase price
Bank's Fee	Depends on size of mortgage, usually 3 percent points of amount borrowed (1% goes to attorney who draws up mortgage/legal documents, 1% to the bank, and 1% to Government as a Stamp) if mortgage is over CI$300K (check figure) then 1.5% goes to gov't
Stamp Duty	Depends on area, and if Caymanian or not... varies between 4 & 7.5% of purchase price less value of chattels (Seven Mile Beach is always 7.5% whether Caymanian or not)
Land Registry Fee	CI$ 50 for Official Search, CI$50 for Transfer to Purchaser's name, CI$100 for Purchase agreement registration
Surveyor	Also varies, approximately CI$700-900

Frequently Asked Questions

Why should I hire a real estate agent to assist me in my search for a property?

Using an agent in your search for a property will save you time and effort especially when you are not familiar with the Cayman Islands. Each agent has access to the island wide Multi-Listing-System. He/she will use that database to search for properties that fit your criteria. Agent will also handle the paperwork and negotiation for you. They know the market condition and can guide you on your price strategy. They know the right steps to take, but they can also help you avoid a misstep in your home purchase. If a new road is going to be built a few blocks away, they'll probably know it. If you're unsure about school districts, they'll be able to direct you to answers. If you're unsure of a builder's reputation, they'll know how you can confirm it. Your RE/MAX® Sales Associate also performs another important function: minimizing the emotion involved in a home transaction. You may be in love with a home, but your agent can point out factors that might not make it right for you. RE/MAX® Cayman Islands Sales Associates are all full-time real estate professionals with many years of experience under their belt. Every Sales Associate is qualified by Cayman Islands Real Estate Brokers Association (CIREBA). CIREBA is the only professional association of Realtors in the Cayman Islands which binds every member to their strict code of ethics and business practice. ' +

Should I work with more than one agent at a time?

Working with one agent saves you time. In the Cayman Islands real estate industry, CIREBA (Cayman Islands Real Estate Broker Association) member brokers share all available listings via a Multi Listing System. RE/MAX® Cayman Islands is a CIREBA member in good standing.

How long should it take to find my dream home?

The average first-time buyer finds a home within one to two months, but it may be sooner because RE/MAX® Sales Associates are extremely knowledgeable of Cayman Islands real estate and can easily match your needs with the available inventory. In Cayman, will I need to hire a real estate attorney? It is highly recommended that both the buyer and seller be represented by real estate attorneys licensed in the Cayman Islands, although it is not mandated. When should I begin looking into financing? To help you determine your budget it is useful to have a meeting with your bank and discuss your financing options. The bank can pre-qualify and/or pre-approved you for a mortgage. Your pre-qualified amount is not a commitment from your bank; it's just the amount for which you might expect to be approved. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Being pre-approved when dealing with a potential seller, gives you a distinct advantage, as he or she will know you're one step closer to obtaining an actual mortgage. It also avoids disappointment and saves you time as you won't be looking at properties out of your reach.

How much money do I need to put down?

When purchasing a property in the Cayman Islands, you will generally be asked for a deposit between 10-25% of the purchase price. This rate varies according to your mortgage lender.

How long should I expect it to take from accepted offer to signed contracts?

Typically the process takes 30 to 90 days. However, it can be done in as little as a week. Your agent will be in communication with the parties on an on-going basis to ensure progress and to handle any issues that may arise.

Are there any restrictions to foreigners purchasing property?

There are no restrictions on foreign ownership. Ownership can be taken in a variety of ways, including a corporation, which does not reveal actual ownership.

What about taxes?

Cayman has no taxes: no sales tax, no income tax, no capital gains tax, no property tax and no inheritance tax. The only payment to the Cayman Islands Government is a one time Stamp Duty, which is paid to Government within 45 days of closing to transfer your title

Can I get bank financing in the Cayman Islands?

Yes, a number of banks and financial institutions offer mortgage packages. Interest rates generally follow New York Prime as quoted by Citibank in the US and vary from 1% to 3% above Prime. Banks usually ask for deposits between 10 -30%, and mortgage lengths are usually 15 - 25 years. Most do not charge pre-paid penalties.

Can I get financing in the US for instance, and use it to purchase property in the Cayman Islands?

US banks typically don't lend outside their own jurisdiction, however, if the applicant has an established equity line of credit with a bank, it is possible.

Can I open a bank account?

Yes! All banks in the Cayman Islands adhere to very strict anti-money laundering regulations, and have comprehensive due diligence requirements that must be met prior to a new account application being accepted. With no credit check facility operating in Cayman, they will perform fairly extensive checks to ensure that you are a legitimate prospective Client. They normally require copies of some or all of the following: Your driver's license and/or passport. A bill/document with your physical address. Bank reference from your current bank. A source of funds letter, (or a letter from your Cayman employer, if applicable.)

Is there Title Insurance?

No, the Cayman Islands Government guarantees Title.