Dominican Republic Property Buying InformationThere are no restrictions on foreigners buying of property in the Dominican Republic. The following information is intended to provide a general overview of the process of buying real estate in the Dominican Republic. However, it does not cover all the rules and regulations in every circumstance. It is advised that potential buyers seek out further information prior to making a decision to purchase.
Steps to Buying Real Estate in the Dominican Republic
1. Prior to purchasing any property in Dominican Republic, it is advised that you appoint an attorney to help you through the process.
2. A customary 10% deposit is offered from the buyer along with the Offer of Purchase contract. This document is drawn up by your attorney and contains information about the property being purchased, the offer price, buyers information along with any financial conditions offered.
3. Once this is accepted by the seller, a Purchase Promise is then drafted up by the buyers office and includes the buyers information, the sellers information, information about the property being purchased, agreed purchase price and any financial conditions.
4. Your appointed attorney will also need to take the property through the Due Diligence process. This process ascertains the current legal status of the property.
To go through this process the following documents will need to be supplied to the attorney. Copies or photocopies of:
a) the Title Certificate of the property
b) the property survey or plan
c) a copy of the ID card or passport of the seller
d) documents showing that the property is either current with tax payments or exempt from payment of tax
e) corporate documentation and authorization to sell (if applicable)
f) condominium regulations and declaration (if applicable)
5. The Sales Contract (which details the legal property description with price and any other conditions) will need to be signed by the seller and the buyerat an attorney's office, who will then notarize it. If the seller is married, the spouse will also need to sign this.
6. The nearest Internal Revenue Office will need to value the property. Payment of taxes are made to this office including the transfer tax (see below for information on this), if applicable.
7. Documents received from the Internal Revenue Office, along with the Certificate of Title, the Sales Contract and copies of identification of both the seller and the buy are taken to the local Title of Registry office where the sale of the property is recorded.
8. The Title of Registry office issues a new certificate of Title in the name of the new owner and cancels the previous Certificate of Title. This particular part of the process can take anywhere from a few days to several months depending on the office. The new deed would normally be received within 90 days.