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.
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.