As a recession blazes through the real estate market like a wild uncontrollable fire, consumers are stricken with fear and dilemma either fighting to keep their homes or trying to find the means to purchase a home. Despite this fear, the horizon is still visible. There are some movements in the real estate markets and consumers are realising that the time to buy is now. The opportunity to buy can be seized and gently massaged until the deal is closed.

For first time home seekers, there are many options available today. There are some favourable terms mortgages with local banks, lease to own options from developers and some very reasonably priced homes which will attract minimum monthly mortgage payments. For investors, there is a glut of apartments, condos and raw land on the market, which of course results in the predictable price decline. In years gone by, most of the older Caymanians who were sailing the seas for a livelihood sent their hard earned dollars home to invest in land. Today, one could easily say that those investments paid off to a certain extent. Over the years, the value of those properties purchased increased and today families of those seamen have a handsome value for such investments and the choice to either, sell, develop or keep those same properties for future generations.

The Cayman Islands is still the sought after destination. The islands boast a strategic geographical location, sturdy infrastructure, practical and sensible laws, stable government, a superb judiciary system and compared to the global playing field, the Cayman Islands is still one of the safest destinations.

The Cayman Islands is greatly coveted for its profitable financial industry, its splendid white sandy beaches and the warmth of its people. No doubt, some will conclude that this is where they want their children to grow up and where they want to retire.

As the economy now stands, it is a buyer’s market and this low price buying opportunity is rare and will be short lived.

Contract to Purchase Property:

Should you desire to own a home, a vacation spot, timeshare or obtain land for development in Grand Cayman, the islands has many real estate agencies that can walk you through options with no cost to you and work with your bankers, developers and attorneys to ensure that you will find you the right property at the best price available. The Cayman Islands Real Estate Brokers Association (CIREBA) is a Cayman Islands corporate body that regulates real estate agents and has a basic but well developed and often adequate Offer to Purchase contract which is often used by realtors. However, a buyer should always get advice from an attorney at the before signing the contract to prevent being a victim of the principle of “Caveat Emptor”, the Latin for “let the buyer beware”.    

Good Title:

The Registered Land Law provided the legal framework for the registration of real estate titles in the Cayman Islands.  This allows for common law proprietary interests to be registered in the Incumbrances Section. Buyers  should be aware of registered incumbrances such as leases, charges and easements on the property. The Cayman Islands Land Registry provides for inspections of property registers and prior to closing your attorney will file a Search and Stay to prevent any dealings with the property until your transaction is completed and to ensure that you the Buyer will obtain a good title.  

Strata Title:

In purchasing an apartment of condominium that is stratified, you the Buyer should be well aware of the rules of the Strata Corporation. It is sensible to get a real estate attorney to review the Strata By-Laws and advise you on the binding ties of the document such as the items represented by the Strata Fees and rules of the By-Laws that may alter your enjoyment of your property.

Stamp Duty

The Stamp Duty Law provides a breakdown of Cayman Islands stamp duty calculations. The statutory rate of stamp duty depends on the location of the property. Buyers should also be aware there are opportunities for first time Caymanian home buyers with respect to payment of stamp duty. Buyers should ensure that saving opportunities are explored by their attorneys.

Bank Mortgage:

Banks are in the business to lend money for a return.  As such, preparing security documents for closing is time sensitive. A real estate attorney is equipped and can prepare these documents for closing quickly and accurately to ensure that the bank obtains the best security to minimise their risks. Upon closing of the transaction, the real estate attorney will ensure that the appropriate documents are delivery to the Registry of Lands for necessary registration.

In the same breath that bankers are protected, Buyers must also be protected and be cognizant of what they are signing over to the bank. Buyers should have the fullest understanding of extent of the expectations of the bank and the strata corporation and other bodies involved in the transaction. Too often Buyers will say “I did not know that I had to pay these extra fees or I did not know that there was a covenant or a right of way over the property”.  It is important that your real estate attorney go that extra mile to ensure that you are fully aware of all angles of your purchase.

Where a company is buying  property, the security documents especially Debentures must be explained to the directors of the company with great care and diligence so that they understand the extent of the expectation to which the bank is holding the company and all possible legal ramifications to the company. 

To conclude now is the time to buy and these islands provide the means to do so through our banks, real estate agents and attorneys. The art of a solid real estate transaction is finding that opportunity, grasping it with full awareness and clear understanding. You will triumph with the best value for money.

It is after all, a buyer’s market!

Sonia Bush,is a Notary Public with Sonia Bush & Associates Attorneys-at-Law & Notary Public. She will be providing her knowledge and insight into aspects of real estate through a regular column in the Observer on Sunday