Ask the expert: Selling property in the Cayman Islands

Updated April 2023

As attorneys, we are often asked questions about the process for selling property in the Cayman Islands. Below are some of the most common questions we are asked.

I want to sell my property. What should I do first?
We recommend contacting a member realtor of the Cayman Islands Real Estate Brokers Association — CIREBA — who will be able to guide you through the initial steps. These include valuing your property and setting a sale price, marketing your property and listing your property for sale on CIREBA's website. Through CIREBA's Multiple Listing Service, the property will be accessible to all CIREBA members, ensuring it is presented to the widest possible audience. Once the property is listed, interested purchasers can arrange viewings either directly with the seller's realtor or via their own realtor.

Someone wants to buy my property. What happens next?
Once an offer has been made and is accepted, the seller's realtor will draw up an offer to purchase agreement, which is a legally binding contract between the seller and the purchaser.

The offer to purchase will typically require payment of a deposit of 10% of the agreed sale price, which is often held in escrow and as stakeholder by the seller's realtor or the seller's attorney. This means the deposit is held in a separate deposit account and should be held in accordance with the terms of the offer to purchase.

Can the offer to purchase be conditional?
From a seller's perspective, it is better to minimise the amount of conditions attached to an offer to purchase. However, the offer to purchase often has a number of conditions such as obtaining financing, attorney enquiries and the buyer reviewing and approving various strata documents.

What happens after the offer to purchase is signed?
If they have not done so already, the seller and the purchaser will often appoint attorneys to act for them. The purchaser's attorney will commence due diligence on the property, which should include raising property enquiries (if permitted in the offer to purchase), a review of the title and, if applicable, reviewing the strata documents. The seller's attorney will usually draft the closing documents and prepare a completion statement setting out the funds required on closing. Prior to closing, sellers should advise their utility companies that they are selling the property and of the proposed closing date.

What happens on closing?
The purchaser's attorney will arrange for the payment of the closing monies and in exchange the sellers will release the keys and provide executed closing documents such as the transfer of land and the discharge of any charge registered on the title to the property. Stamp duty is usually paid by the purchaser and the seller is responsible for the payment of the relators' commission.

This article first appeared in the December 2020 print issue of Camana Bay Times.

About the author

Michael Sharvin is a senior associate on the real estate team of the law firm Bedell Cristin in Camana Bay.