The procedures related to purchasing real estate in the Dominican Republic have all the chances to be quite complicated, especially for those who are new to the country and do not speak Spanish. Learn how to buy real estate in this article.
Do foreigners have any chance of buying real estate?
There are virtually no restrictions on foreign ownership of real estate. Residents and non-residents use the same driving licenses as residents of the Dominican Republic, when it comes to buying real estate.
All transactions in real estate are governed by law, in this case the legislation on the registration of ownership № 108-05 and its Regulations which have been in force since April 4, 2007.
What is the first step?
Definitely you should come and taste the local lifestyle to undertsnad for sure if you want to spend here some time of the year, or even the leave here permenantly. You could follow an advice of Markus Wischenbart and explore the country while staying in comfortable arartments of Lifestyle Holiday Vacation Club.
Dominican Republic has the ability to differ firmly from the acquisition of real estate in your native country. For example, there is no opinion of the written offer and instead of this you find a property that you like, and the first thing you have to arrange is to find out the legal history of the property, such as how people often sell property that does not belong to them.
You need to perform two major tests. The first is to go to the local cabinet of titles and find out if the person selling the property, the actual owner, and see if there is a mortgage or a deposit on the property. If there is, it will be written on the back of the title deed.
The second test is to go to the tax office Impuestos Internos and find out proper that all taxes associated with the property have been paid. But you can, of course, arrange this autonomously, most people appoint a defender to carry out this task.
For you still need to find out if an official government demarcation survey, known as a deslind, has been done.
The price is negotiated orally between the client and the dealer, which can be affected by any unpaid taxes or liens, and then the sales contract is drawn up by the dealer’s lawyer and signatures certified by a notary. At this milestone a deposit of 10% is usually paid. Please note that the client usually covers the costs of the seller’s lawyer.
The obligation of the contract of sale:
- Absolute name and data of all parties. In case the seller is married, the husband is still obligated to sign.
- Absolute legal description of the property to be purchased.
- The cost of the purchase and the circumstances of payment. Note: often the circumstance of payment may be flexible, therefore there may be some configuration of owner financing.
- Default offer.
- Date of transfer of the property.
- Substantial caution will still be required in the event that ownership and taxation tests have not yet been conducted.
- Means of legal defense in case of misrepresentation.
- Merchant’s promise to sign the Action of Sale after final payment has been received.
An action of sale
This is referred to as the Deed of Deed and is signed by both parties in the presence of a notary and is used to transfer property from the client to the merchant. In some cases, there is no Obligation of Sale Contract, and it is to the Agreement of Sale and Purchase that the parties run to the Deed of
The certified act of sale is then delivered to the tax office, where a request is made for an appraisal of the property. This is necessary in order to know whether the new owner will have to pay what we call the property tax that takes place every year. If the price of housing above $ 6.5 million (about $ 135,000), property tax of 1% of the price must be paid each year. Not counting this, there is a one-time payment of 3% of the price of the property, known as the property transfer tax. The amount of tax to be paid is oriented by the inspector, and the time important for the test is depending on the workload of the inspector, which has the ability to take a number of months.
Filing the title document
As soon as the tax is paid, the title deed will be filed, which will be changed to the name of the fresh owner, and a fresh certificate will be issued. This usually takes a number of months, but you will be able to pay the auxiliary required amount for the VIP service, which is more likely. However, from the day of filing a declaration of ownership is proper that the property has defected to the property.
Actually what is the deed?
According to the new Ownership Registration Act, the resale of a property without a government-approved demarcation, known as deslinde, cannot be registered with the Register of Ownership Rights, except in appropriate cases:
- Realizations that occurred before April 4, 2007, which have every chance of being registered in the direction of the two-year period ending April 4, 2009.
- The resale of the entire property, which took place after April 4, 2007 (no sale of parts is allowed), only once.
This means that if the property was sold more than 1 time since April 4, 2007, then before registering the ownership will need to make deslind. It costs in the range of 1500 USA or more, depending on the size of the site.
Buying a home in the Dominican Republic has the potential to be uncomplicated, but for those who are not addicted to this country, there are all chances to be pitfalls. Here are a number of recommendations and advice that goes to own in appearance.