1. Is purchasing a condo in Aruba just like in the U.S.A.? No, Aruba has specific legislation for the establishment of condominium rights. This legislation is based on the Dutch-system and is codified in the Civil Code of Aruba, along with other real property rights.
2. What is a reservation agreement? Customary a reservation agreement is signed by a prospective buyer of a condo reserving a specific unit for a specific period of time and prior to signing a sale-purchase agreement. The reservation agreement is optional but is often used by developers of condominium in the early stages of the project.
3. Why do I need a sales-purchase agreement if I already have a reservation agreement? A sales-purchase agreement is typically a more lengthy document than a reservation agreement and contains details about the right of condominium being purchased, the rights related to such a purchase, construction terms and time-line, details about the owner’s association and the rules and regulations that you as a condominium owner will be subject to.
4. Do I become an owner as soon as I sign the sales-purchase agreement? No, the sales-purchase agreement is the basis or title required for the deed of the condominium to be granted to you?
5. What is a notary in Aruba? The role and functions of notaries in Aruba is embedded by law. Notaries are appointed by the Queen of the Dutch Kingdom. The appointment is for life and is similar to the appointment of judges and prosecutors. A notary has a law degree unlike most public notaries in the U.S.A. A notary, unlike lawyers in the Aruba does not engage in (civil) litigation by trade and is required to balance the interests of both (all) parties involved in a transaction or legal matter.
6. Why do I have to see a notary to get my condo? By law notaries are exclusively empowered to transfer deeds of real property. This includes condominium rights.
7. What is a deed of division? A deed of division is the legal instrument created by a notary and executed by the developer of a condo project that establishes: (i) the individual deeds to each condo unit; (ii) the rights and privileges that are part of each condo unit, including the use of the units and common areas; (iii) the formation of the owners association; and (iv) the obligations and limitations of each condo owner.
8. When and how do I get the deed of the condominium? The deed of condominium is obtained after a notary in Aruba has executed the deed of transfer of title of the condominium and has managed to record said transfer with the appropriate public records held by the Government. After the recordal is completed you have become the legal owner.
9. Can I get a mortgage on my condo? Yes, (local) banks are able to provide financing and have a right of first mortgage established on the condo as collateral.
10. How do I sell my condo? For this you need a sale-purchase agreement and transfer the deed via a notary.
11. Do I need a lawyer? Of course you do 🙂
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