Property Acquisition
The Property Acquisition Process in Curaçao
Purchasing residential real estate in Curaçao differs in several respects from the process familiar to buyers in the Netherlands or other European jurisdictions. Although Curaçao’s legal system is rooted in Dutch civil law, the structure of the market, pricing mechanisms, and transactional procedures have distinct local characteristics. At Wigbold Real Estate, we guide buyers through each phase of the acquisition process. Below is a structured overview of the key steps.
Preparation: Budget and Financing
A successful acquisition begins with a clear financial framework. Buyers should establish their purchasing budget and explore financing options at an early stage. Local banks in Curaçao provide mortgage financing, including to non-resident buyers. Lending criteria, loan-to-value ratios, and documentation requirements vary by institution and borrower profile. Equity contribution is typically required.
In addition to the purchase price, buyers must account for closing costs. These generally include transfer tax, notarial fees, and registration costs at the Land Registry. Collectively, these costs amount to several percentage points of the agreed purchase price. A comprehensive financial assessment prior to entering negotiations ensures a controlled and predictable transaction process.
Viewings and Structural Considerations
Due diligence during property viewings extends beyond layout and location. Curaçao’s tropical climate has a direct impact on building materials and technical installations. Exposure to salt air, high UV levels, and elevated temperatures can accelerate wear and corrosion, particularly in coastal areas.
Key technical considerations include roof integrity, drainage systems, foundation stability, and the overall maintenance condition of the structure. While a building inspection is not legally mandatory, commissioning an independent technical survey is strongly advisable. It provides clarity on deferred maintenance, structural issues, and potential capital expenditure in the short to medium term.
Negotiations and Price Formation
The pricing structure in Curaçao is less transparent than in markets where transaction data is publicly accessible. There is no centralized, publicly searchable database of comparable sales. As a result, market value is determined by a combination of supply and demand dynamics, location, condition, and current market sentiment.
Negotiations are typically conducted through the respective brokers representing buyer and seller. In many cases, there is a margin between the asking price and the final agreed consideration, although this varies depending on property type and market conditions. A well-substantiated offer, supported by market analysis and technical findings, enhances the likelihood of achieving commercially balanced terms.
Purchase Agreement and Role of the Civil Law Notary
Once agreement is reached, a written purchase agreement is executed. This document sets out the purchase price, agreed conditions precedent, and the projected completion date. Common contingencies include financing approval and satisfactory building inspection results.
Under Curaçao law, the legal transfer of real property must be effected by notarial deed. The civil law notary acts as an independent public official and is responsible for conducting title investigations, verifying encumbrances such as mortgages or liens, and preparing the deed of transfer. Following execution, the deed is registered in the public Land Registry, at which point legal title passes to the purchaser.
Property in Curaçao may be held in full ownership (freehold) or under long-term ground lease (erfpacht). It is essential to verify the applicable tenure structure and any associated conditions prior to closing.
Closing and Registration
Completion takes place at the notary’s office, where the deed of transfer is signed and the financial settlement is executed. The notary subsequently arranges for registration in the public records. Upon registration, the buyer becomes the legal owner of the property.
The acquisition of real estate in Curaçao requires a structured approach and a clear understanding of local legal and market practices. With thorough preparation, technical due diligence, and proper legal oversight, the transaction can be executed efficiently and with legal certainty. At Wigbold Real Estate, we consider transparency, procedural clarity, and informed decision-making to be fundamental to a successful acquisition process.
