Tips On Buying Cayman Islands Property

Home / Tips On Buying Cayman Islands Property

If you regularly visit the Cayman Islands for business or for pleasure, you may have considered actually purchasing a property there. There are many Cayman Islands property for sale, so as far as supply is concerned, buyers are not in any danger of running out. But as with all transactions involving real property, it’s important to do your due diligence. Keep in mind that large sums are involved, and the process does go through numerous steps, so it would be better to get things right from the very beginning. Here are some things to consider when looking at Cayman Islands property for sale.

Tips On Buying Cayman Islands Property

Is the Property Clear?

When you are searching for interesting Cayman Islands property for sale, one of the important aspect of the due diligence process is doing a background check on the actual properties. You want to make sure that any property that you purchase is actually fully yours and is not subject to some form of limitation or legal controversy. For example, a seller might not mention that there is a current lien on the property, which would have to be dealt with by the buyer after the transaction is completed. To achieve greater clarity regarding properties, be sure to have someone check the Cayman Land Registry agency. The Cayman Islands requires that all properties should have an identifying block and parcel number, and this should allow you to check whether there are any restrictions, encumbrances, charges or other problems associated with the properties.

Are You Getting the Best Possible Price?

This is a particularly relevant consideration for people who are based outside the Cayman Islands. It’s not unheard of for international prices to be set artificially higher than normal. So you need to compare the prices being offered to you with those being offered in the local market. You may be surprised by the difference, and there have been buyers who later regret paying significantly higher prices for property unnecessarily. To find out more realistic prices of Cayman Island property for sale, have someone check with the Cayman Islands Real Estate Brokers Association or CIREBA. You could have someone call one of the local brokers to ask for a quotation on the properties, and then compare those numbers with the ones being quoted to you.

Are there Exemptions You Can Take Advantage Of?

There are some limited exemptions, which can help to reduce your costs when it comes to Cayman Islands property for sale. For example, if this is your first time buying property there, and if you plan to live there yourself instead of renting it out for passive income, you could be eligible to receive an exemption from the applicable stamp duty. That said, you will need to get a handle on the value of the property being bought. If its value is less that CI$300,000 then you may not have to pay the stamp duty at all. There may also be no stamp duty on items such as certain furniture, window treatments and more, but to confirm whether this will apply to you, it’s best to have someone get in touch with the Cayman Islands Lands and Survey Department.