CAYMAN ISLANDS Law and Practice Contributed by: Norman Klein and Adam Johnson, Appleby
cific due diligence, 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 commercial transactions. There is no customary approach to warranties, so the scope and dura - tion would depend entirely upon the specifics of the transaction and the respective bargaining strengths of the parties. Common purchaser remedies for misrepresen - tation 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 larg - est international transactions. 2.6 Important Areas of Law for Investors Any investor should consider the primary sources of law, including the Registered Land Act (2018 Revision), the Development and Plan - ning 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 activi - ties the purchaser intends to carry out from the property). There are generally no restrictions on foreign ownership of real estate in the Cayman Islands, although certain formalities may apply to differ - ent types of purchaser.
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 profes - sional at the outset of a transaction in order to understand any applicable requirements. 2.7 Soil Pollution or Environmental Contamination Although not common, environmental liabilities can be dealt with contractually between the par - ties by way of warranty and representation. The Development and Planning Act (2021 Revi - sion) enables the Central Planning Authority to serve a remediation notice where it considers that the amenity 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 build - ing, or on the person responsible for causing the condition of the land or building. The National Conservation Act, 2013 estab - lishes a council, whose role is to promote the conservation of natural resources, including the preservation of wetlands and wetland resources, habitats and the conservation of wildlife. Pursu - ant to this Law, protected areas can be created on Crown and private land with the agreement of the proprietor of the land. Developers should consider the potential effects of this Law on any development plans, and should make the appro - priate enquiries when purchasing raw land to ascertain whether any conservation agreements have been entered into with respect to the land.
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