Auctions

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Going once…..

Most people associate the word auction with a chairman and hammer calling the last bid on antiques or a garage sale to the highest bidder: An invaluable collector’s item for a true bargain A notary can also hold auctions. Usually these are registered property such as houses, land or ships. Before an auction at the notary can take place there is a specific process in which a number of steps, as dictated by law have to be are completed. The notary can auction on behalf of mortgagor (in most cases a bank), a creditor with a repossession order or on behalf of the owner (voluntary auction) When the notary is instructed to hold an auction, a date is set. By law, the owner of the object must be informed (if the auction isn’t voluntary), the items to be auctioned and special auction conditions must be published and usually there is an option for a direct bid.

"Maximize your auction experience with our legal expertise"

To go to auctions means extra costs, so it is favorable for all parties, the client, the owner of the auctioned property and the potential buyer, find a solution before an item goes to auction. Usually, it is possible to make a (private) bid within a time limit set by law. Note that a private bid is not possible in auction based on repossession.

Though it seems an easy score at first glance, an auction can result in a less than the hoped-for result. Namely, there is no opportunity to inspect the property / object; in most cases only an appraisal report is made available to the buyer, there are several candidates who all want the best price and the client reserves the right to withdraw. If you are interested to bid at the auction, it is advised to do research or to enlist the help of an experienced professional (like a broker) to avoid disappointment.

This is how we work

When making a (private) bid a valid ID and a banker’s guarantee are required.

Step 01

Opening of the auction.

The style of the auction in Aruba is “bidding and junction”. This way of auctioning is so typically Dutch that the term “Dutch Auction” is used in English. Customary the notary opens the auction as the auctioneer. He explains how the auction works, and that the course of events will be documented in detail per item in a deed, reads the special auction conditions and tries to warm the public for the first part of the auction, the bidding war.

Step 02

Let’s start bidding

For each object a brief explanation and an overview of the cost and minimal bid. The auctioneer asks the audience to bid above the starting bid. Anyone can bid or make a higher bid by raising their hand. The person with the highest bid is called the bettor. His or her bid is referred to as the ‘opening bid’. After the release of the highest bid (adopted after the usual “once, twice, we have a bettor” and a stroke of the hammer of the notary), the notary, will add the information of the bettor to the deed.

Step 03

The Dutch auction

During the second round, the notary will name an amount (well) above the starting bid. The notary reduces the amount gradually either until the starting bid. Is reached or if someone in the audience has called “mijn” (mine in Dutch). It is entirely possible that someone other than the bettor calls this round; it all depends on how much someone is willing to pay. If no one calls this round, the property is ceded to the bettor.

Step 04

After the auction

After the auction the creditor reserves the right during the first business day until 17.00 to not accept the bid. When the bid is too low the creditor may decide to keep the object anyway to sell it in a different way. Hence the person making the bid (bettor or miner) isn’t automatically the new owner. If there are no concerns the notary draws up a deed transferring the property to the new owner.

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At our notary office we are happy to assist you with important events, both business and private, in your life Notariaat Yarzagaray is rooted in the Aruban society and posses because of the uniqueness of our island the knowledge of both Aruban and international regulations.

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Notary Yarzagaray & Partners is knowledgeable about Aruban and international law.