Purchase agreement, oral or in writing
A purchase agreement for houses can be concluded both in writing and orally in Aruba. Purchase agreements are created in several ways. If you as seller use a realtor, the realtor will also usually prepare the purchase agreement, if you and the buyer have come to an agreement.
But you can also buy a house without using a realtor. In that case it is wise to have the notary prepare a purchase agreement. We will gladly be of service to you on this point.
The signed purchase agreement; procedure
Promptly upon receipt of the signed purchase agreement or instructions - and if the purchase agreement has been prepared earlier at the notary's office - the Land Registry office investigates whether your property has undergone cadastral changes and/or whether the registration is correct. This investigation is called the investigation in the land register.
The Land Registry Office also makes inquiries as to the existence of mortgages and (perhaps) attachments. The purchase agreement states that the property in question is transferred free from mortgages and attachments. As soon as the notary knows that there are attachments and/or mortgages, he will take measures to achieve that these attachments and/or mortgages can be cancelled. This investigation is called the mortgage investigation.
In the phase of the investigation, one also verifies whether special provisions have to be inserted in the deed of transfer of title concerning your property. This can appear from the previous deed of transfer of title, the "title". This investigation is called the title investigation.
Furthermore, all kinds of special circumstances that are of importance are investigated. Think, for instance, of right of way, right of egress, and the like. And what exactly have parties agreed? If seller and buyer agreed with each other that the payment and transfer of ownership take place before or after the actual transfer of keys, a special provision on this point will be inserted in the deed of transfer of title.
After the notary has received the written inspection, the tax value will also be requested from the Collector of Taxes Aruba by means of an application form Tax Value.
The Tax Value is a document of the government stating the value assessment of the property sold of the Collector of Taxes.
This value is of importance to request the list (of claims), and to the calculation of the transfer tax.
List (property tax/long lease)/list of claims
The notary is obligated by law to withhold back taxes of the seller (property tax and ground rent) from the purchase price to be received by the seller. In addition, it is possible that the seller still has back taxes with regard to, for instance, income tax or profits tax. The notary also has to withhold these taxes from the purchase price, if there are sufficient funds left from the sale.
After receipt of aforementioned information (written inspection, tax value, and list of claims) the file is complete. The deed of transfer of title can be prepared now. You have to take into account that requesting aforementioned information takes some time; on average around 6 to 7 weeks.
Who exactly are the sellers?
The investigation in the land register, mortgage investigation, and title investigation concern the investigation into the legal status and condition of the property. After this, the investigation into the situation of seller(s) and buyer(s) follows. Was there a divorce, bankruptcy, or death on the side of the seller(s)? In the latter case, for instance, the children of the seller perhaps have to co-sign for the sale and transfer. Or was there question of a last will from which it can be understood that the seller was solely authorized to conclude the sale without consulting the children on this point?
The buyers have to know whether they buy the property together, for instance in case of spouses or people who live together, or that they want to register the property on the contrary in one of their names. There may be fiscal consequences for either possibility, but also the legal consequences are of importance.
The notary will extensively investigate seller's power of disposition, and obligations, if any, attached to the ownership/long lease. The notary sees to it that both the seller and the buyer meet the obligations under the purchase agreement. His mediation also sees to it that the seller delivers the property sold in time, in accordance with the agreement, without mortgage or attachment, and that the buyer deposits the purchase price with the notary in time.