Real estate sellers won’t get work permit carve-out
(CNS): Over the last decade around 150 work permits have been issued to real estate agents, according to numbers released by WORC. In the last year alone 25 permits have been issued in what realtors call a competitive market with limited inventory. But government is not contemplating carving out these jobs for Caymanians. While PACT has made prioritising work for locals a central policy platform, saying it is prepared to withhold permits from employers who do not follow the rules, the aim is to improve adherence to immigration laws through accreditation, not direct action that could disrupt the free market.
Following the recent revelations of record-breaking property sales in 2021 and indications from the real estate sector that there is currently very little property on the market to sell, agents are falling over each other to sell what is available in a fight for commission. CIREBA has dozens of real estate offices as members, with hundreds of agents working the market.
With commission rates ranging from 4% on the million-dollar-plus properties, up to 7% on those under a million and as much as 10% commission on commercial property, the business is extremely lucrative. But with so many properties being sold to overseas owners, there are those that feel the local property boom is not benefiting local people.
As real estate prices soar, young Caymanians are finding it difficult to buy a home and may struggle to meet mortgages or be unable to upgrade as their families grow. Having expatriate workers competing with local realtors is adding to concern about the impact the property market is having on the wider community.
Carving out real estate jobs as an area for Caymanians only is not a new idea. But as there is currently not enough business to go around, according to local realtors, the argument for making this a locals-only job has been raised again, with people calling for government to carve out real estate sales for Caymanians and place a freeze on permits.
However, Labour Minister Chris Saunders told CNS that rather than introducing blanket bans on specific types of jobs, the PACT Government is going to focus on accrediting good employers and penalizing the ones who are doing their best to circumvent the rules.
“We want to use an accreditation system to reward those who play by the rules and create opportunities for Caymanians, providing a smooth system for them to access permits when they are genuinely needed. But where employers have a reputation for failing Caymanians, then we will be watching applications closely,” he said.
“It’s about striking a balance. Many employers are Caymanian business owners as well, and we don’t want to disrupt the market with more draconian policies that would undermine what is a free market,” the minister added.
The idea is to avoid punishing good employers when they genuinely need staff, which would slow down their business, especially now when many small business owners are still struggling.
Saunders said this policy will apply to all sectors, including real estate, so when there is evidence that a real estate company has more agents on permits than it does local people, those employers will not get new permits.
“This is all part of a policy to focus on risk and intelligence,” the minister added. He said that carving out any specific type of job could undermine the future survival of Caymanian-owned businesses and the important thing would be an employer’s track record.
This means good employers with a strong balance in favour of Caymanians will be able to fast-track permit applications, while those who have not made an effort to train and recruit local people will find their applications are scrutinized much more.
According to its website, the Cayman Islands Real Estate Brokers Association has around 230 members, some working alone and others under a real estate office.
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Category: Business, Real Estate
My post is a bit late here but what I have not seen in any post is the fact that the fat cat millionaire brokers in these real estate companies expect newly hired agents, with no experience, to work on a commission only basis. They are not allow to hold another job. Not even a part time job! So now folks, let’s get real folks, how many people can afford to do that? Certainly not many young Caymanians. Not only that but when they do make a sale a chunk of that is clawed back by Mr Rich Broker too, merely to be a part of the brand. Plus other ancillary fees along the way. I’m not a realtor but several Caymanian realtors have been my friends and not many have been able to afford to wait for the big sale. So, if Mr Chris really wants to help then he should legislate that every real estate agent must be paid a salary aside from commission, if no more than KYD 1,000. Certainly this is more than fair if realtors are not allowed by these agencies to hold another job. Just my few thoughts for our Govt to consider!
Just a side note and a word of caution. NEVER get a realtor to act for you if you’re trying to buy a property. They might pretend t but they have ZERO duty of care towards you. 95% of all transactions with a CIREBA agent acting for the buyer and seller will result in the buyer paying list price or above because the realtors have to split their commission. This is a fact.
I hope someone is taking serious notes on real estate agents for prosecution charges. Money laundering in RE is rife here thanks to them and most of those “record sales” they brag about originate from laundered funds and legal loophole transactions.
Maybe names need to called for this rubbish to finally come to an end. They are basically getting paid to keep the status quo under wraps that clearly is not serving the interests of the public. They can only run so far before being brought up on an international blacklist and face adjudication on some level. Just saying.
P.S. These types of “in-the-dark” dealings are the very reasons Cayman is on international blacklists. Smh.
Um, Cayman does not corner the market on real estate being used to launder money. Take a look at the New York skyline and Miami Beach if you want to see where the real money goes.
Caymanian or not, CIREBA is an anti-competitive cartel and should be disbanded.
It should be a competitive market where the best and those that work hard are rewarded rather than a ‘realtor’ fresh from serving a white tip making 7% regardless of horrible service.