First decide what type of property that you want to purchase. Is this going to be a purchase for an investment or a personal purchase? Is this going to be a starter family home or a long term home? What areas do you want to live? Are there any particular subdivisions that you like? Is it better for you to buy property and build or buy a home? What is your budget?
Schedule an appointment with the loan department of your bank of choice and get a pre-qualification letter. This will outline the maximum amount that you can borrow based on your salary (or salaries), your current expenses and the expected loan payment. It will also outline the term and interest rate of the loan. We recommend that you find a property for at least 20% below what you are pre-qualified for because of the fluctuation in interest rates and other factors.
Schedule an appointment with a WALPI agent to discuss the type of property that you are looking to purchase. Be as general as you can when searching for your property. The more specific you are the harder it will be to find it. Once you have found your property and you are satisfied after viewing it, do an Offer To Purchase. Your agent will walk you through this and answer any queries you have.
If you need financing, schedule an appointment with your bank to start the loan process. Each bank has its own set of criteria for granting loans so they will guide you through this. Normal documentation will include your loan application, offer to purchase, forms of identification, address verification, job letters, financial statements, local bank references and life insurance policies. Ensure that your documentation is correct and done in a timely manner. This is one of the main reasons for loan applications being held up. If a local bank will finance your purchase they will require anywhere from 5% to 20% contribution from you.
The normal time for a loan application to be processed is between thirty and sixty days.
Once your loan has been approved, the bank will provide their own lawyers to facilitate the completion of the sale and disbursement of funds so there is no need on your part to hire another lawyer.
The bank will set a closing date at which time all parties involved will meet with the appointed lawyer and sign all documentation relating to the transfer of the property. If you will be overseas documentation can be couriered to you and witnessed by a notary public overseas.
The property is now yours and you will have to pay the 6% or 7.5% transfer tax to get the property registered in your name unless you are a first time Caymanian buyer. The registration period is 45 days from the date of sale but if a loan is involved the banks lawyers will register it immediately.
If it is a cash sale between you and a direct seller, it is recommended that you hire your own lawyer.
If you are on island schedule an appointment with a WALPI agent to discuss the type of property that you are looking to purchase. Be as general as you can when searching for your property. The more specific you are the harder it will be to find what you are looking for. Once you have found your property and you are satisfied with the property after viewing it, do an Offer To Purchase. Your agent will walk you through this and answer any queries you have.
If you need financing we can assist with this by scheduling an appointment with your bank to start the loan process. Each bank has its own set of criteria for granting loans so they will guide you through this. Normal documentation will include your loan application, offer to purchase, forms of identification, overseas bank references, financial information and life insurance policies. Ensure that your documentation is correct and done in a timely manner. This is one of the main reasons for loan applications being held up. If a local bank will finance your purchase they will require anywhere from 15% to 40% contribution from you.
The normal time for a loan application to be processed is between thirty and sixty days. But for these types of loans it can be longer as the banks will have to do additional due diligence on you.
Once your loan has been approved, the bank will provide their own lawyers to facilitate the completion of the sale and disbursement of funds so there is no need on your part to hire another lawyer.
The bank will set a closing date at which time all parties involved will meet with the appointed lawyer and sign all documentation relating to the transfer of the property. If you will be overseas, documentation can be couriered to you and witnessed by a notary public overseas.
The property is now yours and you will have to pay the 7.5% transfer tax to get the property registered in your name. The registration period is 45 days from the date of sale but if a loan is involved the banks lawyers will register it immediately.
If it is a cash sale between you and a direct seller, it is recommended that you hire your own lawyer.
If you are not on island and purchasing property through an overseas agent representing a company that is selling property here locally. BUYER BEWARE!!
Ensure that the company selling the property here has a valid company registration and trade and business license to do business in the Cayman Islands. Most companies will have local lawyers representing them and signing on their behalf here in the Cayman Islands. Request a copy of these if they are not presented.
Ensure that the agent selling you the property has the valid authority to sell property for the company that they are representing.
Ensure that the property being sold is actually in the name of the company selling it. The Cayman Islands Lands and Survey department issues a land registry for every parcel of property bought and sold in Cayman. Request a copy of this land registry.
Request a current valuation of the properties sold in the area that you are purchasing excluding the ones sold by the company that you are dealing with. Some overseas companies are known to sell property for up to three times the normal sales value that properties are being sold for here in the Cayman Islands. They will give valuations of only the properties that their company has sold in the area therefore giving a false and inflated value of the property. One way of checking is to go to the real estate sites Cireba.com or easycayman.com which has almost every listing in the Cayman Islands.
Request a current valuation of the properties sold in the area that you are purchasing excluding the ones sold by the company that you are dealing with. Some overseas companies are known to sell property for up to three times the normal sales value that properties are being sold for here in the Cayman Islands. They will give valuations of only the properties that their company has sold in the area therefore giving a false and inflated value of the property. One way of checking is to go to the real estate sites Cireba.com or easycayman.com which has almost every listing in the Cayman Islands.
Get verification of the information that is being provided by the agent selling the property. Most overseas agents don’t really know what they are selling and are only giving out information told to them by the owners of the companies. In fact very few agents have ever been to the Cayman Islands.
Beware of disclaimers or lack of guarantees on the properties. This normally means that the company is trying to cover itself or its agents from some form of liability or hidden misrepresentation.
NEVER sign a purchase document with a non-refundable clause on deposits or down payments unless you are totally satisfied that the information being presented to you is verified and valid and in writing. DO NOT TAKE FOR GRANTED THE WORD OF AN OVERSEAS AGENT.
Check our Immigration section for immigration issues.
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