For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (including an agent) and a mix of neighborhood exploring and online search. For some, the search takes a while; others find what they want right away. In either case, your real estate agent can be a huge resource of insight and guidance, working through issues or complications that arise along the way. Here’s a general outline of what to expect during a home purchase, from the buyer's perspective.
As a foreigner, can I purchase a condo in Aruba without restrictions?
Foreigners who wish to purchase real estate in Aruba have no restrictions whatsoever. Everyone has the exact same obligations and rights when buying a condo as the citizens of Aruba. The only thing that a potential foreign buyer needs to have is a valid passport.
How does the process of purchasing real estate in Aruba work?
1. Make a formal offer (offer to puchase)
The procedure when purchasing property in Aruba is similar to Canada, Europe, and the US. Once a buyer decides which condo he or she likes, all that needs to be done is to have a formal offer written or offer to purchase signed.
2. Sign the purchase agreement
The next step is signing a purchase agreement between buyers and sellers. The purchase agreement must contain the following: full names of both parties, references that establish identities of both the buyer and the seller-such as valid passports, driver’s license, a default clause, legal description of the property, the date on which the property will be delivered, payment terms, purchase price, the exact date of the closing, and most importantly the requirement of the seller’s party to sign the Deed of Sale once the final payment has been made.
The required deposit is usually around 10% or 20% depending on the developer and is placed in the Escrow account of a Civil Law Notary of your choosing. This way, the condo is reserved for you and it’s taken off the market, so you don’t have to worry that someone else will purchase the condo.
3. The Deed of Sale and transfer of property
When the amount is fully paid, both parties will be presented with the Deed of sale (property title), which is a legally binding document that is drafted by a recognized Civil Law Notary that is appointed and sworn in by the king and queen of the Netherlands. The transfer of the property documents (overdrachtsakte) will be signed by the Civil Law Notary, the buyer and the seller. This document is legally binding and everlasting until the owner of the property decides to sell the property in which case the transfer will have to go through a civil law notary again.
The process at the Civil Law Notary
The notary will ask for the necessary/required documents to complete the transfer such as.
- Copy of a valid identification card of the buyer.
- A Source of fund/wealth document that has to be filled out. Backup documents must be included.
- Copy of the security deposit made.
- Keep in mind that Notary process may take up to a maximum of 2 or 3 months. The notary costs vary depending on complexity of the transaction.
- Remember, the payment of the property must be completed before signing of the deed.
- If all documents have been given and analyzed by the notary, the notary will contact the buyer and seller for an appointment to sign the deed of the transfer of the condo.
Transfer tax
The transfer tax amounts to a percentage of the value of the goods and or condo and is subject to change. The percentage is:
- With a value of Afl. 250,000 or less: 3%
- With a value from Afl. 250,001 and more: 6%
Transfer tax are subject to change by the Government of Aruba.
Financing
Mortgage is possible through the local banks on Aruba. More info can be obtained from the local banks in Aruba.
How do I make sure that the property I am purchasing is safe to buy?
All deeds and transfers of property are done by civil law notaries whom are appointed and sworn in by the King and Queen of the Netherlands. All documents with an official signature of a civil law notary are legally binding and cannot be change by anyone other than the civil law notaries themselves.
