Fractional Ownership

Want to own a condo on Grand Cayman's famous Seven Mile Beach, or another vacation property, but can't manage it on you own? Let me connect you with other potential purchasers who are also interested in fractional ownership.

There are two potential groups of fractional owners:

1. Those who want to purchase a property solely as an investment with the hopes of selling it in a few years for a nice profit.
2. Those who also want to realise a return on their investment but will want to use it themselves for vacations over the longer term.

This is NOT like a timeshare. You will be an actual owner of a property and not a purchaser of vacation weeks. You will have full legal rights to a share of the property, rights which do not expire.

The simplest way of achieving fractional ownership is to form a local (Cayman Islands) company with a limited number of shareholders. Then, a property is purchased in the name of the company. There is nothing sinister or illegal about this practice and it is done all the time.

As a fractional owner, you would be allowed to sell your shares in the company, with the agreement of the other shareholders, effectively selling out your share of the property. While you could take it to the extreme and have 10 or more shareholders in the company and bring down cost of the initial investment, I am promoting the concept of 4 shareholders per company. The more shareholders that there are, the harder it will be to reach an agreement when decisions affecting the company (and property) have to be made. That being said, if you can't commit to a larger initial investment and are willing to work with a larger number of investors, then you'll also have an opportunity to participate.

The sale of shares in a local company that is owner of a property is subject to prorated stamp duty just as if a person were selling the property. For example, if Joe Smith wants to sell his 1/4 share of a company that owns a Seven Mile Beach condo valued at US$1 million, there would be stamp duty payable to the government on a value of US$250,000. Current transfer fees on such a property would be 9% of the value, i.e. US$22,500 and this is typically paid by the purchaser.

The legal services required to setup the company would be handled by a local law firm, not the real estate company. Because all members the local real estate association, CIREBA, are working for the seller, you and your company would be a customer of a CIREBA member company agent, not a client. You would be a client of the law firm handling your company's affairs.

What property to purchase?

It would be a violation if CIREBA rules for me to advertise a property for sale if I am not the listing agent for that property. However, once I have a potential customer who is interested in purchasing a property, I can then show them the various properties that are available. There are many beautiful condos for sale on Seven Mile Beach, as well as many exquisite vacations homes in various parts of the island.

Please fill in the form below to indicate your particular interest in signing up for possible fractional ownership. Of course there is no cost or obligation to do this and I will match you with others who want to achieve the same thing.

I look forward to working with you.