Rent to Buy a property on Curacao

15 juli 2019

What is ‘Rent to buy’ and how exactly does it work?

If you do not have the financial space for a while, but you see a great opportunity, a ‘rent to buy property’ can be a solution. Rent to buy, is a relatively unknown form of borrowing or lending money on Curacao, which involves repayments. When you have paid the last installment you become the owner of the product.
In this article you will read more information about the rent to buy concept, and you will get answers to questions such as “What is rent to buy?”, “How exactly does rent to buy work?” And “What can you finance through a rent to buy property”

Rent to buy deed

In this case , the term, interest and repayments are determined in advance. The interest on a rent to buy deal, is fixed. If you opt for rent to buy, a deed will be drawn up. This deed contains the full sale price, the amortization schedule and the retention of title. The retention of title contains requirements that you must meet in order to become the owner of the product. For example, the entire loan must be paid off to become the owner. The deed must be signed by you and your partner, if any.

Rent to buy a car on Curacao

A product that is often bought like this is a car. When you rent to buya a car, there is usually a small down payment, the remainder is paid in installments. The car is only your property when you have paid the full amount. If you can no longer pay the monthly payment and have not yet paid off 75 percent of the loan, the car can be reclaimed. If the proceeds from the car are not sufficient to pay off the debt, you will still have to pay the remaining amount. This is also known as leasing in Curacao.
Incidentally, a car is not the only vehicle that can be purchased with a rent to buy deal. Scooters and motorcycle are also common on Curacao. Again, you only become the owner of the product when you have made all repayments.

Rent to buy a house on Curacao

The rental purchase of a home is also common. With a lease-purchase house, you pay a fixed amount of rent and repayment every month. Rental purchase is often offered when you are already living in the home. With this method you can usually take advantage of the mortgage interest deduction scheme. The interest you pay on a rental purchase is deductible under the home ownership scheme. There are also a number of drawbacks to the rental purchase of a house. You are only the owner of the house when you have made all payments. The property can therefore be reclaimed. If damage occurs to the home, you are liable for this.

The pros and cons of it

Hire purchase has a number of advantages for the selling party. The purchased product can be seen as collateral for the loan. The guarantee on payment is therefore great. Hire purchase is also attractive for the buying party, because the product can be used immediately. The downside to hire purchase is the interest rate. It may be that you are even more expensive with hire purchase compared to a loan from the bank. In addition, the selling party may reclaim the product if less than 75 percent has been paid and the tenant can no longer pay the repayment.

Rent to buy vs Installment Purchase

The rent to buy concept is actually a variant of an installment purchase. The difference is in becoming the owner. When you buy something on payment, you are immediately the owner of the product. This is therefore different for hire purchase. Here you only become the owner of the product when you have paid all repayments. Until you do so, the vendor or lender remains the rightful owner of the product.

For more information or assistance in drawing up a lease purchase agreement for your home on Curacao, please feel free to contact me at

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