New‑Build vs Resale In Aruba: How To Choose

Should you buy a brand‑new condo or a well‑kept resale in Aruba? It is a great problem to have, but the right answer depends on your timeline, risk tolerance, and plans for personal use or rental income. You want clarity on build schedules, warranties, HOA rules, financing, and what to inspect so you can move forward with confidence.

This guide gives you a clear, practical framework grounded in how Aruba’s market works. You will learn typical delivery timelines, what warranties to ask for, how to review HOAs, and the due‑diligence steps that reduce surprises for both new‑builds and resales. Let’s dive in.

New build vs resale: key points

• New‑build: more customization, modern systems, and developer warranties, but you accept construction risk, staged payments, and a longer wait for delivery.
• Resale: faster closing and immediate occupancy or rental income, with a known physical condition and established HOA records, but you may face older systems or deferred maintenance.
• Your best choice turns on timeline, desire to customize, financing options, rental goals, and tolerance for construction and HOA risk.

Timelines in Aruba builds

• Expect a construction period of about 12 to 24 months for small developments. Larger or phased resort projects often run 18 to 36 months or more. Always confirm the specific developer schedule and how delays are handled in the contract.
• Pre‑sale to contract can take days to weeks. After substantial completion, plan on 1 to 3 months for snagging, corrections, and formal handover or occupancy certification.
• Title registration after handover can take several weeks.
• Typical timing risks include supply chain delays, permit issues, contractor cash‑flow problems, weather events, and phased handovers in multi‑building projects.

Warranties: what to expect

• You should request written, transferable warranties that spell out scope, claim process, response times, and remedies.
• Many developers offer workmanship and finishes coverage for 6 to 24 months, systems coverage for about 1 to 5 years, and longer protections for structural or latent defects. Exact terms vary, so verify locally and insist on contract language.
• Ask for manufacturer warranties for appliances, windows, roofing, and mechanicals. Confirm who handles warranty claims during the coverage period.
• Clarify what the building’s insurance covers and what remains your responsibility inside the unit.

Specs and finishes: avoiding surprises

• Model units often include upgrades not in the base price. Do not assume the model equals standard delivery.
• Obtain a detailed specification sheet before signing. Confirm materials, fixture brands, tile sizes, cabinetry, counters, door and window types, electrical allowances, paint, and floor finishes.
• Document change‑order rules in writing. Note what you can customize, deadlines, costs per upgrade, and how changes affect both your payment schedule and delivery date.
• Plan independent inspections at key build stages and a final walk‑through with a detailed snag list.

Handover and snag lists

• A snag list is a formal record of defects, omissions, or unfinished items at handover. It should include photos and deadlines for fixes.
• Schedule a professional pre‑handover inspection with an independent inspector or engineer familiar with Aruban coastal conditions.
• Where possible, hold back a portion of payment or use escrow/completion bonds until fixes are complete. Require a second verification for final acceptance.
• Common coastal snag items include waterproofing, window and door seals, terrace drainage, corrosion on metal components, paint blistering, grout issues, and HVAC commissioning.

HOA and rental rules

• Review the condo declaration, bylaws, house rules, budget, reserve statements, recent meeting minutes, insurance summaries, management contracts, and rental policies.
• Confirm monthly or quarterly common charges and what they cover. Study reserve levels and any history of special assessments.
• Many Aruba HOAs permit vacation rentals but may set minimum stays, caps, or registration steps. Always confirm rules and any local licensing or tourism requirements before you rely on rental income.
• For new developments, ask how the board will be formed, how long the developer retains control, when turnover occurs, and whether bylaws will be finalized and recorded before transfers.

Financing: what changes by property type

• New‑builds often use staged payments to the developer. Clarify the construction payment schedule, penalties or remedies for delays, and responsibility for interest during construction.
• Some lenders offer construction loans that convert to a mortgage at completion. Some developers offer in‑house or promotional financing. Verify rates, prepayment rules, and risk allocation.
• Resales typically use a traditional bank mortgage with appraisal, title search, and proof of income. Nonresidents often face different documentation and down‑payment expectations. Confirm terms with local banks.
• Aruba uses the Aruban florin (AWG), and the US dollar is widely accepted. Confirm whether your mortgage is in AWG or USD and how any indexation works.

Title, permits, and inspections

• Use a local notary or real‑estate attorney to confirm clear title and the seller or developer’s authority to sell.
• Review land registry and cadastral records for ownership, boundaries, servitudes, liens, and mortgages.
• Confirm building permits and the final occupancy or use certificate. For resales, verify that past renovations were permitted and are properly closed.
• Check zoning, coastal setbacks, public domain issues, and any administrative fines or code violations.

Coastal risks and insurance

• Salt air and humidity increase corrosion. Materials and maintenance plans should reflect coastal conditions.
• Confirm wind ratings for windows and roofs and verify insurance availability for wind and flood. Some coverages may be separate or restricted in certain areas.
• For very low coastal parcels, assess erosion risk and potential future protective requirements.

Costs and closing mechanics

• Ask for clarity on reservation deposits, whether they are refundable, and under what conditions.
• Budget for taxes and transfer fees, notary and land registry fees, and any lender charges. Industry practice for commissions can vary.
• For new units, confirm when HOA contributions begin. Some communities start fees at transfer.
• Request estimates from a notary and lender early. A written closing‑cost checklist keeps surprises down.

Decision checklist: choose what fits you

Rank the following from most to least important:

1. Must‑have move‑in date: immediate, within 12 months, or 12 to 36 months.
2. Customization: minimal, some upgrades, or full finish control.
3. Construction risk tolerance: low, medium, or high.
4. Financing: ability to make staged payments or need a conventional mortgage.
5. Rental plan: immediate short‑term rental, seasonal personal use, or long‑term.
6. Preference: newer systems and low near‑term maintenance vs a lower purchase price.

How to apply your ranking:

• If you need predictable occupancy or near‑term rental income, resales usually fit better.
• If you value customization, modern systems, and can accept a longer timeline with some construction risk, a new‑build can be the better match.
• If financing constraints are tight, compare lender offers for new‑build and resale paths before you commit.

Two real‑world scenarios

Scenario 1: Immediate rental income

You want rental income this season. A resale with verified rental history and established HOA records reduces uncertainty. Your steps:

• Review rental statements and seasonal occupancy patterns.
• Confirm HOA rules permit your rental plan and any licensing or registration requirements.
• Order a home inspection, review service records, and check that prior renovations were permitted and closed.
• Have your notary complete a full title and lien search. Aim for a fast close with your lender’s appraisal already in motion.

Scenario 2: Custom beachfront condo

You want a modern layout and designer finishes. A new‑build offers more control if you accept the timeline. Your steps:

• Confirm permits and project financing, then review the developer’s track record and delivery history.
• Lock in a detailed spec sheet, agree on change‑order rules, and schedule stage inspections.
• Insist on written, transferable warranties for finishes, systems, and structure. Clarify remedies and response times.
• Build your budget for staged payments, interest during construction, and a 1 to 3 month snagging window before final acceptance.

How we vet developers and new projects

Use a disciplined review before you commit. Key elements include:

• Corporate and financials: verify company registration, completed projects, financing sources, and any liens or litigation. Confirm how buyer funds are safeguarded, such as escrow.
• Permits and approvals: check building permits, environmental approvals, and use certificates for completed phases. For pre‑construction, confirm permits are issued and not under appeal.
• Contracts and warranties: review payment schedules, delay remedies, warranty scope, snagging procedures, and dispute resolution.
• Construction quality: analyze specs, identify major subcontractors and suppliers, and visit comparable past projects by the builder.
• HOA setup: obtain drafts of bylaws, budgets, and reserve plans. Confirm board control and the timing of turnover to owners.
• Insurance and guarantees: review builder insurance and any completion bonds or performance guarantees.
• Timing history: check whether the developer met past delivery dates.
• Independent technical review: engage an engineer or construction consultant with Aruba experience to review plans and site conditions.

Vetting resale inventory: what to check

• Title and encumbrances: full title search, mortgage and lien check, and seller authority.
• Condition and systems: professional inspection covering structure, roof, electrical, and plumbing. Request pest reports and HVAC service records.
• Permits: confirm prior renovations were permitted and closed.
• HOA health: recent minutes, budgets, reserves, pending special assessments, and insurance coverage.
• Income history: rental records, seasonal patterns, and any forward bookings or existing contracts.
• Utilities and costs: confirm meters, average utilities, property tax history, and any service contracts.
• Neighborhood and planning: zoning, planned developments, tourism‑zone considerations, and noise or traffic factors.

Buyer checklists you can use today

New‑build checklist

• Written spec sheet with brands, materials, and allowances.
• Stage inspections plus a final snag list with deadlines.
• Warranties for finishes, systems, and structure with clear remedies.
• Payment schedule, delay remedies, and interest rules during construction.
• HOA bylaws, projected budget, reserve plan, and turnover timeline.
• Builder insurance, performance guarantees, and escrow arrangements.
• Title, permits, and final occupancy certificate plan.
• Independent engineer review for coastal details and waterproofing.

Resale checklist

• Title search, mortgage and lien clearance, seller authority.
• Home inspection, pest report, and system service records.
• Permit verification for past renovations and closures.
• HOA minutes, budgets, reserves, and assessment history.
• Rental history and current bookings if you plan to rent.
• Utility averages, property tax history, and operating contracts.

Next steps

Aruba rewards careful buyers. Confirm legal, tax, and lending details with a local notary, attorney, and bank before you sign. Use independent inspections and insist on written specs and warranties. With a structured process, you can choose a path that fits your timeline, comfort level, and investment goals.

If you would like a tailored plan based on your priorities, request a private consultation with Bold Real Estate Aruba. We bring island‑market expertise, a disciplined vetting process, and global reach to help you move with confidence.

FAQs

How long do new condo builds in Aruba take?

• Small projects often complete in about 12 to 24 months, while larger or phased resort developments can take 18 to 36 months or more; always confirm the developer’s schedule and delay remedies.

Do new builds in Aruba include warranties?

• Most developers provide written warranties for workmanship and systems, but lengths and scope vary; request detailed, transferable warranty language in your contract and confirm the claim process.

Can foreign buyers purchase property in Aruba?

• Yes, foreign purchases are common, but you should confirm any registration, residency, tax, or lender requirements with a local notary, attorney, and bank before you proceed.

Are short‑term rentals permitted in Aruba condos?

• Many properties operate as vacation rentals, but HOA bylaws and local tourism rules apply; verify rental permissions, registration steps, and any tourist tax obligations before you rely on rental income.

How can I avoid post‑handover surprises on a new‑build?

• Use independent stage inspections, create a detailed snag list at handover, insist on enforceable warranties with clear remedies, and review the developer’s delivery history and financial standing before you commit.