An Important Lesson for Aruba’s Real Estate Market

In my book Paradise Found: A Guide to Buying Real Estate in Aruba, I stress repeatedly that buyers must surround themselves with knowledgeable, ethical, and legally competent professionals. Because when that safety net fails, when a broker fails to check, to disclose, or to guide,  the financial and emotional costs can be enormous.

I often tell clients the same thing in my legal practice when advising on property purchases involving brokers or agents: be careful. In any market, there are always those who focus more on closing deals quickly than on ensuring full diligence and disclosure. That’s why I consistently urge buyers to surround themselves with professionals whose reputations are built on care, not speed. A recent ruling from the Court of First Instance of Aruba illustrates just how far things can go wrong when even basic standards of care are not met. On August 27, 2025, in case AUA202301442 ECLI:NL:OGEAA:2025:255, the court issued a decision that sheds critical light on the responsibilities of brokers and the importance of honest, accurate communication in real estate transactions. This wasn’t a criminal case. But the judgment contains strong, unequivocal language, and findings, that deserve our attention.

The Background: A Deal Built on Misunderstanding

The buyer, SB Real Estate Aruba, approached the seller’s agent, Five Star Realty VBA (KWA), operating under the Five Star Realty VBA, operating under the Keller Williams brand brand, with a clear purpose: to purchase a property suitable for short-term vacation rental(more than 90 days per year). This intended use was made known to the agent at the outset, according to findings in the court’s ruling. The agent then pointed SB to a property located in a “woongebied met waarden” (residential zone with cultural or environmental value), which, as the ruling later confirmed, did not qualify for a lodging permit and could not be used legally for vacation rentals.SB, relying on assurances made during communications with Keller Williams Aruba  signed a purchase agreement for Afl. 1,349,240, placing a 10% deposit of Afl. 134,924 in escrow. It was only later, when the financing bank performed its own due diligence, that SB was made aware the property’s zoning prohibited their intended use.

What the Court Said –  In Its Own Words

The court determined that Five Star Realty VBA, operating under the Keller Williams brand  as the seller’s broker, had failed in its professional duty. It is important here not to paraphrase, but to let the court’s own language speak for itself.

“KWA is in haar zorgplicht jegens SB tekortgeschoten omdat zij aan SB ten onrechte heeft medegedeeld dat het pand geschikt was voor verblijfsrecreatieverhuur, op grond van welke informatie SB in goed vertrouwen is overgegaan tot het sluiten van de Koopovereenkomst.”(Par. 4.12.2 — ECLI:NL:OGEAA:2025:255)

Translation:

“KWA fell short in its duty of care towards SB by wrongly informing SB that the property was suitable for vacation rental use, based on which SB proceeded in good faith to enter into the purchase agreement.”

The court further explained:

“Een verkopend makelaar handelt onrechtmatig jegens een aspirant-koper indien de makelaar jegens deze niet de zorgvuldigheid betracht die in de omstandigheden van het geval van de makelaar mag worden verwacht.”(Par. 4.7.1)

Translation:“A selling broker acts unlawfully towards a prospective buyer if the broker fails to exercise the level of care that may be expected under the circumstances.”

The Outcome: Broker Held Financially Liable

Based on its findings, the court ordered Five Star Realty VBA, operating under the Keller Williams brand  to pay the buyer  Afl. 78,696.25 in damages, plus legal interest as of January 20, 2023 and Afl. 1,500 in attorney’s fees for part of the proceedings. While some of SB’s additional claims were rejected, notably, those based on damages ceded from the sellers, the court’s central conclusion remains clear: Five Star Realty VBA, operating under the Keller Williams brand’s conduct fell below the legal duty of care, and financial compensation was warranted.

Root Causes and Reflections: Was This a One-Off?

This case raises some difficult but necessary questions. Was this a one-time error? Or are there other buyers who may have been told, with similar confidence, that a home could be rented out short-term, only to find out later that zoning prohibited it? As the ruling noted, the property’s zoning and lack of a lodging permit were verifiable facts. The ROPV zoning plan clearly states that short-term vacation rentals in that area are not permitted, and no prior lodging permit existed. So, was this an isolated breakdown, or does this point to a broader need for consistency and verification in property marketing and sales?

Keller Williams, Governance, and Brand Responsibility

Five Star Realty VBA was operating under the Keller Williams brandname at the time. Keller Williams International is known for its strong emphasis on professional standards, fiduciary duty, and putting clients first. I am familiar with the KW training and can attest to the seriousness with which those values are taught.

But values must also be enforced.

While the court’s ruling does not address Keller Williams International by name, it is important context that the broker in question operated under that global brand. Keller Williams has built a reputation on professionalism, training, and client-first ethics. But when a local affiliate carrying that name is found by a court to have breached legal duties toward a buyer, it naturally invites a closer look. Does the parent company have visibility into how its name is being used? Are compliance and ethics monitored beyond the training room? These are questions of brand governance, not legal responsibility,  but they matter in an industry built on trust.

That said, this moment should not prompt finger-pointing at one brand alone. It should serve as a wake-up call for all real estate professionals in Aruba, regardless of affiliation, to reflect honestly on their own practices. Whether you’re an independent agent, a boutique firm, or part of a multinational franchise, the legal and ethical responsibility is the same: know the facts, disclose them accurately, and never put a deal ahead of your client’s long-term interest. 

Zoning regulations and permit eligibility are not minor technicalities. They are fundamental to the viability of a real estate investment, especially when buyers are planning for vacation rentals or commercial use. Every broker and agent on the island should be asking themselves today: Have you ever marketed or represented a property for a use that might not be permitted under the ROPV? Have you ever assumed, rather than confirmed, that a lodging permit was possible? If so, now is the time to revisit those listings, update those disclosures, and ensure this kind of mistake is not repeated.

This ruling may have named one office. But the lesson belongs to the entire industry. The court held the brokerage legally responsible for providing inaccurate information, a reminder that professional duty applies equally across all levels of the industry. It reinforces the importance of verifying facts, not just taking someone’s CV, signage, or words as proof of credibility.

The Bigger Question: What Will We Do?

• Will the real estate industry in Aruba adopt stronger zoning compliance mechanisms? Stronger ethics mechanisms
• Will Keller Williams International audit or oversee its local offices more rigorously?
• Will the authorities investigate whether this was an isolated matter,  or one of many?

Final Thoughts: Lessons for Buyers a and the IndustryIf you’re buying in Aruba, remember this: Don’t rely solely on one source, trust but verify, get a lawyer or appraiser or a zoning specialist involved early. Always verify zoning, permits, and usage compatibility – in writing from a reliable or official sourceIf something seems too good to be true, ask again, and then ask someone else. And never confuse brand recognition with guaranteed integrity.Until next week, keep asking the hard questions, and don’t forget to visit my new site, www.lincolngomez.com, where you can find all my blogs and podcasts. Stay informed, stay empowered, and stay smart.

And remember, in real estate trust matters, honesty walks and you know what talks.