Strata ownership: is it the right move for you?

Strata developments present unique opportunities for community living and solid investment potential in the Cayman Islands. Knowing the details of strata ownership is key for making informed decisions.

What is strata title?

Strata title is an important part of property ownership in the Cayman Islands. It lets you own a specific unit (or "strata lot") within a development while sharing common areas such as gardens and swimming pools.

The common areas and amenities of a strata development are taken care of by a strata corporation. All strata lot owners automatically join the strata corporation upon becoming a registered owner of their unit.

In this article we look at what an owner might do if they are unhappy with the management of the strata scheme by the strata corporation.

Key considerations of strata title

To avoid problems from the start, a prospective buyer should check not only the unit being purchased but the wider strata scheme too, including:

• Bye-laws: strata lots and common property are regulated by bye-laws. Prospective buyers should check the bye-laws to make sure they are familiar with the rules
• Strata finances: ask for copies of financial records and meeting minutes to ensure the strata corporation is adequately funded and well managed
• Future expense: ask the seller and the strata corporation about any planned works that could cause disruption or incur significant costs

Understanding your rights

Once the unit has been purchased, owners should be aware of their rights about the ongoing operations of the strata corporation, including:

• General meetings: owners can participate in general meetings of the strata corporation and vote on decisions involving the management and operation of the strata scheme
• Documentation: owners are allowed to see certain records of the strata corporation, including financial statements, meeting minutes and insurance information
• Common property: surplus land within the common property may only be sold by the owners passing a super-majority resolution

Resolving disputes

In the unfortunate event that owners find themselves in dispute with the strata corporation, they may try to solve the problem in the following ways:

• Discuss with other owners: other owners may also be dissatisfied with the management of the strata and working together might be more effective than acting alone
• Raise at general meeting: annual general meetings let owners bring up issues with the Executive Committee of the strata corporation regarding management of the strata scheme. If no annual general meeting is due, owners should check the bye-laws to establish how they may call for a general meeting, including the level of support required from other owners to do so
• Active participation: owners may wish to become more actively involved in the management of the strata scheme by seeking election to the Executive Committee

How Ogier can help

If you're buying a property in a strata scheme it's important to talk to a property lawyer to ensure you're well informed before you commit to the purchase. Our full service Property team in Cayman acts for buyers, sellers, developers and financiers, providing advice on the purchase, sale or lease of commercial and residential properties located in the jurisdiction.

To learn more contact Jon Hughes or visit our Cayman property law website.

This article was first published in the summer 2025 issue of Real Life Caribbean.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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