FEES WHEN BUYING & SELLING PROPERTY
Buying and Selling Property in the Cayman Islands
Real estate fees in the Cayman Islands, for companies selling property that are members of the Cayman Islands Real Estate Brokers Association (CIREBA), are set by the association and as part of the CIREBA regulations, member companies are not allowed to deviate from these fees when listing a property. The real estate commission is set on a sliding scale, which is dependent on the list price of the property and is set out below, applying to sales made in both Cayman Islands dollars and United States dollars.
Cayman Real Estate fees
|$494,999 and under||7%|
|$495,000 to $994,999||6%|
|$995,000 to $9,994,999||5%|
|$9,995,000 and over||4%|
|Business Sale $95,000 or over||7%|
|$94,999 or under||10%|
Listing your property
In order to list your house, condominium, land or business with a real estate company that is a member of CIREBA, you will be required to sign a standard CIREBA listing agreement which will then ensure that the listing particulars for the sale of your property are disseminated throughout the CIREBA Multiple Listing System (MLS). The initial period for listing a property within CIREBA is twelve months, with an option to renew in six-month increments thereafter.
Paying the real estate fees
In the Cayman Islands, the real estate fees are usually paid by the vendor unless agreed otherwise by the purchaser in an offer to purchase; the real estate fees will be paid as the first disbursement of funds at closing and if the purchasers real estate agent is different to the listing agent and is also a member of CIREBA the real estate fees will be split equally between the two agents.
Under the CIREBA listing agreement, the principal is the vendor of the real estate, and they pay the real estate fees for both the buyer and seller’s agents. A CIREBA agent, therefore, has fiduciary responsibility to the vendor, notwithstanding a buyer is an agent’s customer to whom that CIREBA agent owes honest and trustworthy treatment.