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Thread: selling my house need advise

  1. #1
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    selling my house need advise

    Hi I'm selling my house.This is the email I got from the Realtor. I wanted to transact in dollar,with this gentlemen,it looks as though I can't do that and I thought the exchange was 1.75 not 1.78.
    Rick

    First of all I want to thank you for keeping us informed in your last email dated June 14, 2012. I would like to emphasize on some points that are not clear enough.
    It is very common to encounter these types of situations by trying to please clients, but unfortunately all transactions in Aruba must follow the Aruban law, and due to lack of information on some parts, confusion may arise.
    1. By law, all financial transactions in Aruban territory must be executed in Aruban Florins/Guilders AWG, since this is the official currency of the country.
    2. All money that enters the country Aruba must go through The Central Bank and is subject to the official exchange rate of AWG 1.78 per US dollar. As is all the money that leaves the country subject to a different exchange rate. However, at that point it is the Sellerís discretion what he or she does with that money. Whether they exchange it back to US Dollars or not. The transaction of the Sale occurs in Aruban Florins/Guilders AWG and it ends in Aruban Florins/Guilders AWG.
    3. In general contracts are performed in US Dollars when one of the parties is from foreign origin. This is used as a guide and to protect, especially The Seller, in the event of a currency fluctuation between the Aruban Florins/Guilders AWG and the US Dollar. At the moment of closing we exchange at the current exchange rate. (Which fortunately in Aruba is very steady at AWG 1.78).
    4. In terms of monetary amounts, the Seller will receive US$ 215.000 AWG 382.700 minus the 5% commission corresponding to the Real Estate Agent (A.T.H. Real Estate) equaling US$ 10.750 AWG 19.135 (also exchanged at AWG 1.78) and minus the AWG 300 paid to the appraiser by A.T.H. Real Estate. These two amounts deducted from the AWG 382.700 make it a grand total of AWG 363.265
    5. Allow me to emphasize ones more that Mr john Doe did in fact bring US $215.000 but these funds are subject to follow the Aruban law and go through the Central Bank, which exchanges these funds at AWG 1.78. This is the legal way to do financial transactions here in Aruba. And all parties are legally bound to the countryís laws and regulations. The closing has to occur in Aruban Florins/Guilders AWG since it is an Aruban transaction. If the Seller then desires to exchange those funds back to US$ or any other currency to take that money to another country, he or she will have to attain to the Bankís exchange rate of that country at that moment.

    I hope to have informed all parties sufficiently.
    Cordially,

  2. #2
    Aruba since 1979
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    Andrea J.'s Avatar
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    Unsure what your question is?
    Is it re: the exchange rate?
    The exchange rate guidelines and policies should be listed in your agreement with the realtor.
    You also should call the central bank and ask what the exchange rate was on the day u accepted the offer.

    Quote Originally Posted by turo11 View Post
    Hi I'm selling my house.This is the email I got from the Realtor. I wanted to transact in dollar,with this gentlemen,it looks as though I can't do that and I thought the exchange was 1.75 not 1.78.
    Rick

    First of all I want to thank you for keeping us informed in your last email dated June 14, 2012. I would like to emphasize on some points that are not clear enough.
    It is very common to encounter these types of situations by trying to please clients, but unfortunately all transactions in Aruba must follow the Aruban law, and due to lack of information on some parts, confusion may arise.
    1. By law, all financial transactions in Aruban territory must be executed in Aruban Florins/Guilders AWG, since this is the official currency of the country.
    2. All money that enters the country Aruba must go through The Central Bank and is subject to the official exchange rate of AWG 1.78 per US dollar. As is all the money that leaves the country subject to a different exchange rate. However, at that point it is the Sellerís discretion what he or she does with that money. Whether they exchange it back to US Dollars or not. The transaction of the Sale occurs in Aruban Florins/Guilders AWG and it ends in Aruban Florins/Guilders AWG.
    3. In general contracts are performed in US Dollars when one of the parties is from foreign origin. This is used as a guide and to protect, especially The Seller, in the event of a currency fluctuation between the Aruban Florins/Guilders AWG and the US Dollar. At the moment of closing we exchange at the current exchange rate. (Which fortunately in Aruba is very steady at AWG 1.78).
    4. In terms of monetary amounts, the Seller will receive US$ 215.000 AWG 382.700 minus the 5% commission corresponding to the Real Estate Agent (A.T.H. Real Estate) equaling US$ 10.750 AWG 19.135 (also exchanged at AWG 1.78) and minus the AWG 300 paid to the appraiser by A.T.H. Real Estate. These two amounts deducted from the AWG 382.700 make it a grand total of AWG 363.265
    5. Allow me to emphasize ones more that Mr john Doe did in fact bring US $215.000 but these funds are subject to follow the Aruban law and go through the Central Bank, which exchanges these funds at AWG 1.78. This is the legal way to do financial transactions here in Aruba. And all parties are legally bound to the countryís laws and regulations. The closing has to occur in Aruban Florins/Guilders AWG since it is an Aruban transaction. If the Seller then desires to exchange those funds back to US$ or any other currency to take that money to another country, he or she will have to attain to the Bankís exchange rate of that country at that moment.

    I hope to have informed all parties sufficiently.
    Cordially,

  3. #3
    Senior Member jeffnev's Avatar
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    I recently learned this on the Aruba.com website when looking up the exchange rate for our upcoming trip. I never knew the exchange rate varied by type of transaction.

    Exchange rate for US dollars is awg 1.77 for cash and awg 1.78 for travelers checks. (awg 1.75 at supermarkets and gas stations / awg 1.80 at shops and restaurants.

  4. #4
    Aruba since 1979
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    Andrea J.'s Avatar
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    http://www.aruba.com/traveltoaruba/t...lSectionLnk327 here is what it says!!! thanks jeff.
    MONEY
    To change florins to US dollars, divide florin amount in half and add 10%. This formula will be especially useful when shopping in supermarkets.
    Exchange rate for US dollars is awg 1.77 for cash and awg 1.78 for travelers checks. (awg 1.75 at supermarkets and gas stations / awg 1.80 at shops and restaurants)
    All major credit cards and travelers checks are accepted.
    Personal checks from out of Aruba are not accepted.
    Some shops will not accept US $ 50 or US $ 100 due to worldwide counterfeiting.

  5. #5
    Senior Member Shnyda's Avatar
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    In foreign currency markets there are MANY different exchange rates depending on the type of transaction. Typically your worst exchange rate will be at the bureau de change at the airport and usually your best rate is doing financial transactions through a bank.

    When internationally traveling - it often makes sense to make all your purchases on a credit card (barring those that have foreign currency charges) to ensure you get the "bank exchange rate".

    Aruba is pegged to the USD - so I usually figure transactions using $1.78.
    -Eric, Karen and Mia-
    Aruba New Years 2017-18 12/28/17 - 1/3/18 (18th Trip)


  6. #6
    Senior Member Shnyda's Avatar
    Join Date
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    When my father-in-law purchased the condo we have down in Aruba - he opened an Aruban Bank account to make the purchase. He wrote a check to the Aruban Bank for the initial deposit and then wrote a check in AWG's on his Aruban account.

    Many of the bills and other things we pay for down there we use the Aruban account.
    -Eric, Karen and Mia-
    Aruba New Years 2017-18 12/28/17 - 1/3/18 (18th Trip)


  7. #7
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    selling my house

    Hi I wanted to avoid the exchange rate. 1.75 would of been much better then 1.78 .

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