(CNS): The private member’s motion filed by opposition MP Pearlina McGaw-Lumsden in May to reserve the real estate profession for Caymanians was debated in parliament in June and supported by the government, with Premier André Ebanks describing it as “powerful”.
Presenting the motion, McGaw-Lumsden said there was a growing concern among Caymanians that opportunities within the real estate sector had become inaccessible to them and that the larger share of the economic benefits associated with the sale and transfer of local property is flowing elsewhere.
As he stood to support the motion, Ebanks said it fitted well with the government’s plans to “adjust the frameworks to the existing reality that Caymanians can handle and do more in their own country”, and that “Caymanians have evolved and need a greater stake in the success that is coming to their country”.
He tied the goal of the motion to new legislation, expected in September, dealing with the outdated Local Companies Control Act and the licensing regime surrounding the foreign ownership of businesses here, many of which are associated with construction and the development of real estate.
As she presented the motion, McGaw-Lumsden said, “Many Caymanians have raised concerns regarding the growing practices of real estate transactions involving individuals who do not reside in these islands, who are not licensed to work here, and who are marketing and facilitating the sale of Caymanian property from an overseas jurisdiction.”
People are people facilitating the sale of local property from outside the Cayman Islands through referral arrangements, offshore sale networks, affiliated companies or other mechanisms, she noted.
“The effect is still the same,” she said. “Economic opportunities arising from the sale of Caymanian real estate are increasingly being exported beyond our shores rather than remaining within our local economy. If a property located in the Cayman Islands is being marketed and sold, then Caymanians have a right to expect that the economic benefits arising from those transactions should principally accrue within the Cayman Islands and to those who are lawfully entitled to work in this jurisdiction.”
She asked why commissions generated from the sale of Caymanian land are being earned by individuals operating overseas while qualified local people are still struggling to establish themselves within the profession. “These concerns deserve serious examination,” she said.
The motion doesn’t oppose legitimate foreign investment or seek to discourage international purchasers from investing here, as that has played an important role in the country’s development, she stated. However, there is a significant difference between welcoming investment and permitting “the outsourcing of economic opportunities that should properly benefit those who live, work, and contribute within our community”.
She said that Caymanians cannot be expected to “stand by while opportunities connected to one of our most valuable national assets are transferred offshore”, adding that “parliament must send a clear message that any business model designed to sideline locals in favour of overseas sales arrangements is not in the long-term interests of the country”.
The premier offered the government’s commitment to advancing the motion following consultation, but said that, as McGaw-Lumsden had acknowledged in her address, provisions may be needed to grandfather in those already working in the sector.
However, Ebanks made it clear that “the framework has to change in this industry”. Referring to Cayman’s “pristine environment”, he said, “This is not selling real estate in some murky jurisdiction where it’s hard… Real estate almost sells itself. So how complicated is it?”
Thanking McGaw-Lumsden for the motion, Ebanks said it was time to make the necessary changes to create opportunities for Caymanian people across this sector.
