Educate you on the home buying process on Bonaire.
Locate suitable properties on the island.
Make arrangements to view selected properties.
Help you determine if you have found the right home, at the right price, by providing you with market information.
Provide professional financing guidance.
Inform you of normal expenses associated with the purchase of a home.
Disclose any known material facts about the property.
Help you successfully navigate the offer process, and ensure that the offer is promptly presented to the seller for consideration.
Coordinate all of the details to ensure a smooth transaction. Our services do not end when your offer is accepted, they continue long after you are happily in your new home!
When working with me, our services are usually available at no charge to you. I will usually be paid from the seller's proceeds.
The Home Buying Process
After finding your dream home on Bonaire, RE/MAX Paradise Homes will draft a purchase agreement, in English, for presentation to the seller. Once the buyer and seller have agreed to the terms of the contract, a deposit of approximately 10% of the purchase price is required. This deposit is held in escrow by the Notaris (who serves a function similar to the title insurance company AND closing company) and must be paid within 7 days of the signing of the agreement. This deposit is credited toward the purchase price at closing, just as it is for transactions in the US and Holland. Contracts for real estate on Bonaire may include a penalty clause in the event that either of the parties fail to comply with their obligations as detailed in the contract. As well, a contract of sale can include other conditions, so that the sale will not go ahead, for example if the purchaser fails to obtain a residence permit or a mortgage. The Notaris, who serves as the closing agent, ensures that the property is clear of title with no outstanding liens or mortgage. The responsibility of ensuring clear title rests with the Notary and no title insurance is required.
At the closing, the deed is transferred from seller to buyer and the transaction is recorded at the Register of Real Estate Property, (called the Kedaster in Dutch). The purchaser become legal owner of the property once the deed has been signed and the Notary has ensured that it has been entered in the public register. The purchase price is not transferred to the seller until the Notaris has confirmed that the property is charged with no mortgages or attachments other than those that were taken into account when the deed was signed.
On Bonaire, you do not need a lawyer to transfer real estate. And you need not become a resident to own property on Bonaire. If buying a home or property in your own name, you must present your passport or other picture identification. If buying in a company name, you must present articles of incorporation and a statement showing the company is in good standing.
Closing Costs
The Notary generally arranges the financial settlement of the property transaction. Unless agreed
Creating or canceling mortgages
If the buyer borrows money in order to purchase a property, the lender may require that the house serve as collateral for the loan. The mortgage deed necessary for this must also be drawn up by the Notaris who arranges for an extract of that deed to be registered in the public registers. After the loan has been repaid in full, the mortgage registration is cancelled by a mortgage cancellation deed. Mortgages for property on Bonaire can be obtained from the local banks on Bonaire and are available to both American and Dutch buyers. We help can help you with this process.
American buyers commonly use a home equity loan on property they own in the United States. A home equity loan from the U.S. typically carries a lower interest rate, than is charged on Bonaire, and the interest that the buyer pays is also tax deductible.
Types of Land on Bonaire
There are three types of land on Bonaire. "Fee Simple land" is privately owned property that can be sold to individuals, just as in the states or in Holland. "Government long lease" land is owned by the government and then leased to individuals or companies for a period of 60 years, with possible extensions of 20 to 40 years. The government leases long lease land for an annual fee that ranges from Nafl 0.30 to Nafl 3.00 per square meter. Leased land is land also owned by the government but is usually leased for a shorter period of time (usually 5 years) and with a specified purpose, usually agricultural or recreational. Non-residents can only buy private property as undeveloped land; to buy long lease land, as a non-resident there must be an existing structure on the land. Non-residents can purchase Land with a structure already on the premise but the owner is subject to property taxes and the annual lease fee. All deed types give registered ownership.
More than half of all land on Bonaire is long-lease land owned by the government. The holder of a long lease land pays an annual fee; every 20 years this fee can be readjusted to 6% of the value of the land. At 40 years, the island council fixes the value upon approval. The government maintains zoning control over long lease land, and can designate which areas can contain commercial properties, single family homes or multi family housing.
Generally, the holders of long lease land contracts are local inhabitants but the lease can be transferred or inherited. According to Antillean law, one cannot buy an un-built on plot of land. There must be a house on the land that is water and wind- tight - i.e., a house with a roof and windows and doors. Another requirement is that within one year of obtaining the long-lease contract, construction must begin. When the long-lease period is ended and the government reclaims the land, the government is obliged to pay a compensation of the present value of the property as if it where built on private property. This has however never occurred on Bonaire, where long-lease contracts are really viewed as private property.
Financing Sources
Buyers can obtain a home mortgage loan from one of the local banks with a term of up to 20 years with a 30% down payment. Interest rates can vary from 9.5% to 12%. If you are buying private land, most local banks will lend up to 70% of the land's value and repayable in up to 5 years. RE/MAX Paradise Homes can assist you with an appraisal that is required by most lenders. Some points to consider when applying for a mortgage on Bonaire:
Monthly payments may not exceed 1/3 of your after tax income The property should be insured against fire You should have life insurance to protect your family The land can either be privately owned or long-lease
A decision to finance is generally taken within 48 hours by most local banks, after an application form has been completed and salary levels are verified.
Insuring your Home Premiums
As an example, the following premiums would hold for a house appraised for Nafl 500,000 with an inventory of Nafl 55,000.
Fire only
1.1% - 10% per thousand
Fire extensive excl. CatFire insurance plus the building excl. storFire plus catFire plus storm, sea and earthquakesm and earthquakes
1.75% - 11.5% per thousand
Fire plus catFire plus storm, sea and earthquakes
2.85% - 12% per thousand
Fire extensiveFire plus volcanic eruptions and floods
5.7% - 13.7% per thousand
Fire extraFire plus clearing the site, loss of rents, glass/windows and 10% above insurance value
6% - 14% per thousand
burglary insurance
2.5% per thousand
Property taxes in Bonaire
Property management services in Bonaire
Moving your "stuff" to Bonaire There are three seaports, into or out of which goods are transported by ship. Consumer goods pass through the port of Kralendijk, which has three piers. One pier is used for container goods.
The general regulation concerning the import and export of goods, dates from 1908 and is made for the protection of local production and reduction of the import of luxury articles.
Furniture and Household Goods. Residents and non-residents may import goods to Bonaire. Duties are applicable. Property owners can avoid payment if they import household goods within three months after they receive their residency. In this case, your private household goods are not subject to any import duties as long as all is brought in at one time. In the event that not everything can be imported at the same time you should consult the customs inspector. With a valid reason for not being able to bring in all your belongings at the same time, he will give you a time period in which these items can still be imported tax free, mostly this period will be 6 month's. If you don't do this, you will have to pay the applicable taxes. When it concerns new articles and no private household goods, you pay the normal import duties. You must be able to prove that it concerns household goods.
If, in fact, you have received your residence permit and intend to import household goods within the given time-frame customs requires the following documents:
Residence license Proof of registry at the civil registry
In failing to present any one of these documents you have to pay a deposit, the amount depends on the items that you are importing.
Overseas Containers Your household goods can be shipped to Bonaire by sea container. Several companies specialize in this transport. It depends on the company how long it takes for a container from the States or Holland to reach Bonaire. The prices are exclusive of the cost of clearance in and out, e.g. loading of the container, costs of ground transport, the export document, etc.
A forwarding agent in the States can take care of shipping your belongings. One of the most widely used forwarding agents is:
For individual items, the price for shipping the items is calculated per cubic meter (m3). Another option is buying a container. On privately owned containers you have to pay import tax. A 20 foot container is valued at Nafl. 3500.-, a 40 foot container is valued at Nafl. 5000.-.
When your container is on the wharf on Bonaire, it has to be cleared. The clearance documents cost Nafl. 75.-. Port duties for a 20-foot container are Nafl. 83.50, and for a 40-foot container, Nafl. 97.50. The container will be transported to your home. Transport costs within Kralendijk are Nafl. 125.-, and outside Kralendijk Nafl. 250.-. These prices are subject to change without notice.
Important: If importing household goods, you will have to be in possession of your residence permit when you want to clear your container and avoid duties. If you are not in possession of a residence permit, you pay US$ 35 for each day the container is on the wharf.
All information listed on this site is as accurate as we can make it, but is not guaranteed. Please verify all information for accuracy before you make any purchase or selling decision.
