Procedure and Required Documents for The Sale And Purchase of an Immovable Property in Curacao:
Required documents and information on the transaction of Sale and Purchase.
- A sign purchase agreement between buyer/purchaser and seller. (if there is no sign but only a verbal sale and purchase agreement, parties can at any moment revoke the sale and purchase agreement. Free of any charges unless charges were made by any party, a lawyer or the civil law notary). If sale and purchase agreement is sign before the civil law notary, parties have (3) days to change their mind on the agreement. By law a down payment should not exceed more than ten percent (10%) of the purchase price;
- Appraisal report or any other document on the immovable property indicating the description of the immovable property. (mentioning certificate of admeasurement number) and its market value (no older than six (6) months);
- A copy of the title deed (when Seller acquired it) for any special conditions applicable to the immovable property. (notary can also acquire a copy from the Kadaster at NAF 20.00 per page);
- Documents and information from buyer(s) and seller(s):
- Buyer/seller being a natural person:
From seller(s) as well as buyer(s) a copy of his/her passport. Including mentioning and declaring the place (county), state and country of birth, civil status (married or not married). Complete residential address (with documents proving this e.g. Two last utility bills or any other document no older than 6 months). Email address and/or telephone to be able to contact the buyer(s). Seller will have to provide additional information on the proof of his/her civil status (married or not). Since approval in certain cases is needed from a spouse for the transaction;
- Buyer and/or seller being a (legal) entity:
- Corporate documents being a copy of the deed of incorporation of the entity providing its statutes. (including all documents and deeds on any amendments to the deed of incorporation if applicable).
- Proof of registration of the entity or company. In the (Public Trade) Registers (no older than 6 months) indicating the complete address of the company.
(or of its agent). Exception: if the company is registered in Curacao, the notary will take care of requesting the excerpt. At the Chamber of Commerce & Industry on Curacao and following point B.3. will not be applicable);
- certificate of incumbency/good standing mentioning the legal representative of such entity, information on its (board of) directors.
- documentation on the Ultimate Beneficiary Owner (UBO being a natural person).
- Board resolution (with signature legalize by a notary). Approving the transaction on behalf of the entity. Indicating who will be authorized to legally represent the company in the transaction. And for signing to take place at Notary office . This will also apply when (Managing) Director needs approval from the Board of Shareholders.
(Of the mandated person(s) as well as legal representatives of a legal entity. All information and documents are needed as mentioned under A);
If the buyer wishes to authorize/mandate a staff member of the notary office to sign on his or her behalf. The following text should be incorporated in the Board Resolution or the Power of attorney:
Once all of the above mentioned documents are received by the notary office the following procedure will be carried out:
- A draft invoice within 24 hours to the buyer. (including notary fees and other fees for the completion of the transaction);
- Along with the invoice the wiring instructions for depositing the purchase price with the notary’s invoice on the notary’s escrow account;
- draft of the notarial deed of sale and purchase.
The Buyer will get a period of time to review aforementioned documents. Also the opportunity to ask any and all (legal and technical) questions pertaining to the property rights and the transaction. The Buyer has to understand his/her rights, view the property. Also understand the legal consequences upon purchasing rights and title to becoming an owner of the immovable property. The Buyer has to pose all questions by email, to the notary
Once buyer understands and approves all terms, conditions and restrictions of the transaction, the notary can request the buyer to provide proof of payment. And once the funds are on the escrow account of the notary, the notary will schedule an appointment with the buyer and seller (or with their representative) for the signing of the notarial deed, which takes place before the notary.
The next step:
Once signing and registration of the deed, within the Public Registries on Curacao, has taken place. The funds will be distributed to the necessary parties (seller(s), realtors, homeowners’ association, government for long lease and taxes etc.) involved. The civil law notary however is only responsible and liable for the transfer, payments and disbursement of the funds. Including the transferring of tax, long lease payments and disbursement of the purchase price to the seller. Pertaining the immovable property involved in the transaction.
Sometimes financing (a mortgage loan) is involve for the purchase of the immovable property. Then you are requested to inform the notary of such. From the very beginning and also in which currency this will be financed (US$, Euros or NAF). When providing the notary with all the documents for this. Please instruct your bank where you wish for the signing of the notarial deed of sale and purchase as well as the (separate) deed of mortgage to take place. So the bank (creditor) can send the notary the instructions for drafting the mortgage deed. Establishing a right of mortgage is a separate transaction. For which you will receive a separate notary’s invoice next to the invoice for the sale and purchase transaction.