Buying a Property at Auction in Aruba
Buying a property at auction can be an exciting opportunity — you might just find your dream home or investment at a great price!
If you’re looking to buy a home in Aruba, an auction could be worth considering. Besides giving you more options, it might also allow you to buy at a discount compared to the regular housing market.
Types of Property Auctions
There are two types of auctions: voluntary auctions and foreclosure auctions.
In Aruba, most auctions are foreclosure auctions, so we’ll focus on how these work.
If you’re interested in a voluntary auction, feel free to contact our auction specialists at
[email protected] — we’re happy to guide you through the process.
What Is a Foreclosure Auction?
A foreclosure auction happens when a homeowner has fallen behind on mortgage payments.
If the debt isn’t repaid or renegotiated, the bank can request that the property be sold at auction to recover what is owed.
By law, only a civil-law notary can organize a foreclosure auction in Aruba. The notary ensures that all legal rules are followed and that the process is fair for everyone involved.
How the Process Works
- The notary and the bank agree on the date, time, and place of the auction.
- The bailiff notifies the homeowner, debtor, and any lienholders at least 30 days before the auction.
- The auction details — including conditions and the starting price — are published in local newspapers and on the notary’s website.
- Before the public auction, interested buyers can make a private offer to the bank through the notary — up to 14 days before the auction date.
- This offer must be unconditional and final.
- If the bank accepts the offer, the sale is submitted to the Court for approval.
- Once the Court approves, the public auction is canceled, and the sale is completed privately.
- If the private offer isn’t accepted, the public auction goes ahead as planned.
On Auction Day
On the day of the auction, the notary will:
- Explain the auction terms, taxes, fees, and any buyer’s costs.
- Make sure everything runs fairly and transparently.
The notary also has the authority to reject bids, stop or restart the auction if necessary, or resolve any disputes.
If a bidder makes a mistake, the notary decides whether the bid is still valid — and her decision is final.
How Bidding Works
The auction happens in two rounds:
- Ascending Bidding
The notary announces the starting price (set by the bank).
If no price is set, the public can start bidding freely.
Bids usually go up in fixed amounts (for example, Afl. 1,000).
The highest bidder at this stage is confirmed when the notary taps the hammer.
- Descending Bidding
In the second round, the notary starts from an amount higher than the last bid and counts down in steps (for example, Afl. 1,000).
The first person to shout “my” wins — as long as their bid is higher than the top bid from round one.
If no one says “my,” the winner from the first round keeps the highest bid.
After the auction, the bank has five (5) working days to decide whether to sell the property to the highest bidder.
Important Bidding Rules
- Bids are binding — you can’t back out once you’ve made an offer.
- You can’t include conditions, like “subject to financing.”
- If two or more people bid together, each person is fully responsible for the full amount.
- You can bid on behalf of someone else, but you’ll still share responsibility for completing the purchase.
What You’ll Need to Participate
To take part in an auction, you’ll need to:
- Show a valid ID (passport, ID card, or driver’s license).
- Prove that you can meet the financial obligations (for example, through a bank guarantee or a “declaration of willingness” — a written statement from a recognized bank saying they’re ready to finance your purchase).
This declaration is not the same as a bank statement.
If you don’t have these documents ready, the auction may be postponed.
You can also choose to pay a deposit into the notary’s account before the auction.
If you win, that amount goes toward your purchase.
If you don’t, you’ll get it back.
Helpful Tips
- Ask about all auction costs before you start bidding.
- Check whether the property is rented out and what its zoning purpose is to make sure it fits your plans.
- Work with real estate agents, appraisers, and contractors to get a good idea of the property’s value and condition.
- Decide your maximum bid in advance.
- Bidding too early may drive up the price unnecessarily.
- Bidding too late may cause you to miss out.
- If you’re nervous about bidding yourself, you can have a real estate agent or representative bid on your behalf.
