Suggestions to Buyers!

MPG Real Estate & Marketing would like to give you a few suggestions to make your purchase an easy one: 

1.      Sign a preliminary Sale/Purchase Agreement with the owner of the property which contains the basic terms and conditions. The Seller is committed to sell the property to you after signing this agreement.

2.      Payment of a security deposit of 10 percent of the selling price agreed to in the Sale/Purchase Agreement would be required in most cases.

3.      In order to process the Sale/Purchase Agreement the notary requires the following documents:

a.      Copy of a valid identification card of the Buyer.

b.      Complete information of sale form and personal data form.

c.      Copy of the security deposit paid 

  Lease land (Leasehold) In addition to property land (freehold) you can purchase a home that is built on lease land (leasehold). With lease land ownership belongs to the Land of Aruba and rights to renewable 60-year leases are granted for an annual fee. Many non-residents have bought lease land or homes situated on lease land.  

 Condominiums There are many condo projects currently under development in Aruba and MPG Real Estate & Marketing will be happy to assist you select the right one. Our condo specialist will be happy to help you navigate the market by discussing what amenities are important to you and important considerations such as maintenance fees and developer information.  

 Taxes (Real Estate/Property) The only annual property tax you have to pay is called land tax and it is usually based on the selling price. The first USD 34,000.00 is free of tax and on the remainder you pay USD 4.00 per USD 1,000.00 value.  For example annual land tax on a USD 250,000.00 property would be USD 864.00 

 Closing expenses When purchasing property the following costs are attributable to the Buyer: 1. Transfer tax of between 3-6 percent depending on the value of the property, this is a single payment effective since January 1, 2007 2. Notary fees for the transfer deed are 1 percent of the selling price 3. Notary fees for the mortgage deed (if applicable) are 1 percent of the selling price.

  Closing costs are generally between 4-8 percent of the selling price. If you would like further information on buying a home please feel free to contact Muna +297 593 4647 at MPG Real Estate & Marketing and I will be happy to answer all of your questions.