What is Included in a Purchase Agreement and How Do You Draft One?

Have you reached an agreement with the seller of your dream home in Curaçao? Then it’s time to put the agreements in writing. A verbal agreement between private individuals is not legally binding in Curaçao. This means you will need a purchase agreement.

But what exactly does this document include?

A purchase agreement contains all the details that you and the seller have agreed upon regarding the sale of the property. This includes the purchase price and the handover date – the day you typically gain access to the property. Additionally, the agreement often specifies contingencies, such as financing conditions or a structural inspection. Agreements regarding movable property (such as curtains, refrigerators, or stoves) are also included. If you’ve negotiated with the seller about who will cover certain repair costs, these details should be part of the contract.

It’s advisable to have the purchase agreement reviewed by an expert, such as your buyer's agent, to ensure all terms are correctly recorded.

Cooling-Off Period

After signing the purchase agreement, buyers in Curaçao, like in the Netherlands, have three days to withdraw from the purchase without penalties or explanation. Additionally, contingencies often include a longer period to secure financing or conduct a structural inspection. Typically, the financing clause allows for six weeks, while the structural inspection period is shorter.

Once this period passes without invoking the contingencies, the purchase agreement becomes binding, and you are required to proceed with the purchase.

Signing and Sending the Contract to the Notary

Once both parties have signed the purchase agreement, it is sent to the notary of choice, whose details are included in the contract. The buyer typically selects the notary, but this can also be agreed upon by the seller. Once the contract becomes unconditional, the notary prepares the deed of transfer – the legal document that finalizes the sale.

You officially become the owner of the property only after signing the deed of transfer at the notary’s office.

Cancelling the Purchase

If you decide to withdraw from the purchase within the designated period, you must notify the seller’s agent in writing, preferably by registered letter and through common communication channels such as email. This applies if you are exercising your cooling-off period or if you fail to secure financing (for example, if your mortgage application is denied).

Penalty for Non-Compliance

If the purchase agreement becomes unconditional but you are unable to secure the necessary mortgage, the agreement will outline the next steps. If you cannot complete the purchase by the agreed date, the seller will issue a formal notice of default and typically grant you an additional eight days to finalize the transaction.

Should you still fail to complete the purchase, the seller may dissolve the contract and demand a penalty of 10% of the purchase price.

Watch for the Age Clause

Some purchase agreements include an age clause, which warns the buyer that older homes may have defects. This clause protects the seller from liability. While reasonable for older homes, sellers increasingly request age clauses for newer properties to protect against potential repair costs. Pay close attention to this clause and negotiate with the seller if necessary.

DIY Purchase Agreement

A purchase agreement is a complex legal document. Fortunately, your real estate agent will typically handle the drafting process. If you prefer to draft it yourself, model contracts are available online. However, self-drafting is not recommended due to the risk of errors that can lead to significant legal and financial consequences. Always involve an expert to draft or review the contract.

This article was written by Adriaan Smit.

For more information on this topic, please feel free to contact me:
📧 adriaan@sunlife.realty
📱 WhatsApp: +5999 686 2994

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