CAYMAN ISLANDS Law and Practice Contributed by: Adam Johnson, Appleby
2.7 Soil Pollution or Environmental Contamination
gence, often in the form of a report on title and a legal opinion. 2.5 Typical Representations and Warranties Warranties are always subject to negotiation and should be expressly included in the sale and pur - chase agreement, although extensive warranties are not customary on anything but the largest commer - cial transactions. There is no customary approach to warranties, so the scope and duration would depend entirely upon the specifics of the transaction and the respective bargaining strengths of the parties. Common purchaser remedies for misrepresentation or breach of warranty would include an action for damages, misrepresentation and/or rescission of the agreement, and a refund of any deposit paid. Insurance is very rarely used outside of the largest international transactions. 2.6 Important Areas of Law for Investors Any investor should consider the primary sources of law, including the Registered Land Act (Revised), the Development and Planning Act (2021 Revision) and the Stamp Duty Act (2019 Revision). However, there are other laws that may be applicable, depending on the specifics of the transaction (such as the type of purchaser, the type of property and what activities the purchaser intends to carry out from the property). There are generally no restrictions on foreign owner - ship of real estate in the Cayman Islands, although certain formalities may apply to different types of pur - chaser. The carrying on of business from real estate within the Cayman Islands requires certain local licences, some of which are specific to property type. It is always advisable to consult with a professional at the outset of a transaction in order to understand any applicable requirements.
Although not common, environmental liabilities can be dealt with contractually between the parties by way of warranty and representation. The Development and Planning Act (2021 Revision) enables the Central Planning Authority to serve a remediation notice where it considers that the amen - ity of an area is adversely affected by reason of, inter alia, the ruinous, dilapidated or other condition of any structure, or by the condition of land due to the deposit of any refuse or spoil. The remediation notice can be served on the owner or occupier of the land or building, or on the person responsible for causing the condition of the land or building. The National Conservation Act, 2013 establishes a council, whose role is to promote the conservation of natural resources, including the preservation of wet - lands and wetland resources, habitats and the con - servation of wildlife. Pursuant to this Law, protected areas can be created on Crown and private land with the agreement of the proprietor of the land. Develop - ers should consider the potential effects of this Law on any development plans, and should make the appro - priate enquiries when purchasing raw land to ascer - tain whether any conservation agreements have been entered into with respect to the land. Polluters, owners and occupiers could also be sub - jected to civil action for any environmental harm. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Any development of land requires a grant of planning permission. “Development” encompasses the carrying out of building, engineering or other operations in, on, over or under any land, the making of any material change in the use of any building or other land, or the subdi - vision of land. However, it is subject to a number of exclusions, including any works for the maintenance, improvement or other alteration that only affect the interior of a building or do not materially affect the external appearance of the building.
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