Commission rates represent the percentage of the final sale price of a property that a real estate agent or broker charges as compensation for their services. Essentially, when you sell or purchase a property through the assistance of a real estate professional, you agree to pay them a commission based on the transaction’s value. These rates can vary widely depending on location, market conditions, and the specific services the agent provides.
Why do real estate properties come attached with commission rates? Simply put, they serve as a means of compensating real estate professionals for the expertise, experience, and resources they bring to the table. From conducting market analyses and setting competitive listing prices to coordinating property showings and navigating complex legal procedures, agents play a pivotal role in guiding clients through every stage of the real estate journey.
Structured fee system
If you’re in the market for buying or selling property in the Cayman Islands, you will most likely be engaging with a member of CIREBA (or the Cayman Islands Real Estate Brokers Association). With a network encompassing over 270 agents and 38 firms, CIREBA has played a pivotal role in guiding and regulating the Cayman real estate industry since 1987.
To ensure a standardized and transparent approach to property transactions, CIREBA members adhere to a structured fee system established by the association.
At present, the CIREBA real estate commission rates are as follows:
- Properties $9,995,000 and over: 4%
- Properties $995,000 to $9,994,999: 5%
- Properties $495,000 to $994,999: 6%
- Properties $494,999 or under: 7%
These commission rates are determined on a sliding scale based on the property’s listing price and apply to sales made in both Cayman Islands dollars and United States dollars.
As part of the CIREBA Code of Ethics, members cannot adjust these rates when listing a property. This ensures fairness and consistency in real estate transactions entered by its members across the board.
(It is important to note that while CIREBA offers a safe and trusted option for pursuing real estate business in Cayman, membership is not required to conduct property transactions on the islands. Buyers and sellers are not obliged to work with CIREBA members and have the freedom to handle their transactions independently or with non-members, in which case commission rates are not fixed and are at the discretion of the agent or company contracted.)
Listing your Cayman property
Partnering with a CIREBA member provides you with instant access to their Multiple Listing System (MLS), offering the most up-to-date and comprehensive property listings across the Cayman Islands. This system is accessible to all its member agents and companies, providing widespread exposure for your property and maximizing its visibility in the market.
If you would like to list your Cayman property with a CIREBA member, you will be asked to sign a standard listing agreement which ensures that your property’s details are circulated through the MLS for an initial period of 12 months, with the option to renew every six months.
When an offer is made to purchase your property, it is always submitted in writing, typically using the standard CIREBA Offer to Purchase document.
Who pays the real estate fees?
According to the terms of the CIREBA listing agreement, the principal, or property seller, is responsible for paying the real estate fees for both the buyer’s and seller’s agents. This means that a CIREBA agent has a fiduciary duty to the seller, while still providing honest and trustworthy services to the buyer.
In Cayman, when being represented by a CIREBA company, real estate commission fees are paid to the listing broker at closing. When the seller’s or purchaser’s real estate agent is different from the listing agent, the real estate fees will be divided between the two CIREBA companies.
Whether you’re buying or selling property, it’s essential to have a clear understanding of the commission rates and other fees that come with your property transaction. Count on our seasoned team of CIREBA-certified real estate professionals at ERA Cayman to provide the guidance you need to make confident and informed decisions every step of the way — call us today!
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