When purchasing property in the Dominican Republic it is important to understand the process, we are here to help.
Deciding on what you would like to do with the property before you purchase is a great start. When buying as an investment, such as a rental property, you may want to choose a place which is located in a higher traffic area or a popular location. On the other hand, if you are choosing a property to live in you may want something more private or even decide on buying a lot and building.
Choosing the location, whether it is in a gated community or not will play an important role in your ownership costs such as maintenance or HOA fees, utility prices etc. It is also important to take into consideration the upkeep costs, the Dominican Republic is a beautiful warm country, and with the pleasant weather comes a lot of humidity. Properties in a tropical climate require more maintenance than those in a non-tropical climate, this is especially so for ocean front locations.
We can help you weigh the pros and cons of each property in your selection so you can make the right decision. If you choose to buy a lot and build, we can orient you towards the right developer for the job.
The Dominican Republic does not restrict foreigners on purchasing real estate, in fact you do not even need to be a resident to do so, all you need is your passport. Ownership of property is documented by a “Title” which is issued by Title Registry Offices.
Once you choose a property, we can assist you in choosing the right lawyer to represent you, unless you already have one. Once you are legally represented, we will work with you through the purchase process, which is outlined below.
- Offer of Purchase: We prepare detailed “Offer of Purchase” which contains the amount offered by the buyer, the amount of the deposit (usually 10% of the value of the property), the payment plan, the passport information of both the buyer and seller and the information from the Title of the property. This is reviewed, approved and signed by the buyer before sending to the seller.
- Accept / deny / counter: The seller can either accept, deny or counter the offer. If they counter the offer you can either accept or counter again, this process can repeat until a price agreed by both sides is reached.
- Accepted offer: Once the offer is agreed upon, the seller signs it accepting the price and conditions.
- Deposit and due diligence: After the accepted offer is signed by both parties, the buyer wires the deposit amount into their lawyer’s trust/escrow account. This amount will be held pending until the next contract and until the lawyer completes their due diligence on the property such as confirming a clean title, condo fees, liens, etc.
- Promise of Sale & Sales Contract: Prepared by the property lawyer, this document outlines the conditions of the sale. This document is signed by all parties and notarized and is generally in Spanish, with translations available when necessary.
- Balance of funds: The buyer wires the balance of the funds, either into the lawyer’s trust/escrow account or directly to the owner, this will have been stipulated in the Promise of Sale.
- Transfer of Title: Your lawyer can carry out all legal work on transferring the title to your name once the sale is closed.
- Congratulations, the property is yours!