Securing your dream home in Curaçao is an exciting milestone. However, once you've reached an agreement with the seller, it’s crucial to formalize the terms in writing. Unlike in some countries, verbal agreements between private individuals in Curaçao are not legally binding. This is where a purchase contract comes into play.

But what exactly does a purchase contract include?

Key Components of a Purchase Contract

A purchase contract meticulously outlines all agreements made between the buyer and seller regarding the sale of the property. Key details include:

• Purchase Price – The agreed-upon amount for the property.
• Delivery Date – The date when the property is transferred, and typically, when you gain access to the home.
• Resolutive Conditions – These conditions allow the buyer to cancel the agreement under specific circumstances, such as:
  • Failure to secure financing (financieringsvoorbehoud).
  • Unsatisfactory structural inspection (bouwkundige keuring).
• Movable Property – Items not permanently attached to the house, such as appliances, curtains, or fixtures, can be included in the agreement if negotiated.
• Repair Agreements – If the seller agrees to cover specific repair costs, these arrangements should be clearly detailed in the contract.

It is highly advisable to have the contract reviewed by an expert, such as your purchasing broker, to avoid oversights that could lead to complications.

Reflection Period

After signing the purchase contract, buyers in Curaçao are entitled to a three-day reflection period – similar to the regulations in the Netherlands. During this time, you can cancel the purchase without incurring penalties or providing a reason.

Beyond this period, additional resolutive conditions can be stipulated to extend the timeline for essential steps, such as:

• Financing Approval – Typically, a period of six weeks is granted to secure a mortgage.
• Structural Inspections – A shorter timeframe is usually allotted for property inspections.

Once the reflection period and any resolutive conditions expire, the contract becomes unconditional, and the buyer is legally obligated to complete the purchase.

The Notary’s Role

Upon signing, the purchase contract is forwarded to the chosen notary – whose details are also listed in the contract. The notary is usually selected by the buyer but can be agreed upon by both parties.

Once the contract becomes unconditional, the notary drafts the deed of transfer (leveringsakte), which finalizes the legal transfer of the property. Ownership is official only after signing this document.

Cancelling the Purchase

Should you wish to cancel the purchase within the reflection period, you must notify the selling broker in writing – ideally by registered letter and through email or other standard communication methods.

Cancellations may also occur if you fail to secure financing, provided that a financing reservation is part of the resolutive conditions.

Financial Penalties for Non-Performance

If the purchase contract becomes unconditional but you fail to secure financing or complete the purchase, the contract will outline the next steps.

• The seller must first issue a notice of default (ingebrekestelling) and provide a period – typically eight days – for you to meet the obligations.
• If the purchase cannot proceed within this timeframe, the seller may terminate the contract and demand a penalty of 10% of the purchase price.

Old-Age Clause – Proceed with Caution

Some purchase contracts include an old-age clause (ouderdomsclausule), which limits the seller’s liability for defects in older properties. While this is standard for aging homes, sellers increasingly seek to apply this clause to newer properties to protect themselves from unforeseen repair costs.

Buyers should carefully review and negotiate this clause with the seller to avoid unnecessary risks.

Drafting the Purchase Contract

Crafting a legally sound purchase contract requires precision and expertise. While brokers typically handle this process, DIY contracts are available online. However, drawing up your own contract is not recommended. Even minor errors can have significant legal and financial consequences.

Always seek the assistance of a qualified broker or legal professional to ensure that the purchase contract is accurate and comprehensive.

For more information or assistance with drafting your purchase contract, feel free to contact me:
📧 adriaan@sunlife.realty 
📞 +5999 686 2994

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