The Buying Process
Step 1 – Property Search
Your agent will work closely with you to identify properties that align with your budget, preferred location, lifestyle needs, and investment objectives. Viewings can be arranged in person or conducted virtually, offering flexibility for international buyers.
Step 2 – Making an Offer
Once you’ve selected the right property, your agent will prepare a formal Offer to Purchase. This document outlines the proposed purchase price, deposit amount, any special conditions—such as financing, valuation, or inspections—and the desired closing date. When the seller accepts the offer, the agreement becomes legally binding.
Step 3 – Deposit
A deposit of approximately 10% of the purchase price is typically payable upon signing the contract, though exceptions may apply depending on the property or negotiation terms. The deposit is held securely in escrow by the seller’s attorney or the listing brokerage until completion.
Step 4 – Property Due Diligence
Your attorney will undertake a comprehensive due diligence review. This includes verifying legal ownership, conducting a title search, reviewing planning permissions, confirming boundaries and rights of way, and identifying any encumbrances or restrictions affecting the property.
Step 5 – Financing
If financing is required, local banks generally request proof of income, a professional property valuation, and a deposit. Lending requirements may vary, but Cayman’s financial institutions are accustomed to working with both local and international buyers.
Step 6 – Completion & Transfer of Title
Once all conditions have been satisfied or waived, the transaction proceeds to closing. Funds are transferred, stamp duty is paid, and the title is formally registered with the Cayman Islands Lands & Survey Department. At this point, ownership is officially transferred to the buyer.
COSTS & KEY FACTS
Costs of Buying Property
Buyers should budget for the following expenses in addition to the purchase price:
Stamp Duty
7.5% of the purchase price or the market value of the property—whichever is higher.
Legal Fees
Conveyancing fees typically amount to approximately 1% of the purchase price.
Mortgage Stamp Duty
If financing:
- 1% on mortgage amounts up to CI$300,000
- 1.5% on mortgage amounts above CI$300,000
Property Valuation Report
Approximately CI$500+, depending on the lender and property type.
Home Inspection Fee (Optional)
Costs vary based on the size of the property. Inspections generally start around CI$700 and increase with square footage and complexity.
Typical Closing Costs
Overall closing costs usually range between 8.5% and 9.5% of the purchase price, depending on the specifics of the transaction.
