Investing in Real Estate in The Dominican Republic - A guide to buying property in DR
Buying Property in the Dominican republic as an investment or as a second home or retirement home is subject to certain Land registry laws and it is important to follow the required steps to ensure a smooth transaction.
The buying and selling of property in the Dominican Republic is subject to the Land Registry Law of the Dominican Republic. Pursuant to the law of the Dominican Republic, the first step in purchasing property in the Dominican Republic is the execution of a contract for sale between the buyer and seller.
In the Dominican Republic, it is a legal requirement that the contract for sale be signed in front of a notary public. In the Dominican Republic a notary public must have a law degree. The contract for sale sets forth the general terms and conditions of the sale — a description of the property being sold, the agreed upon sales price and other matters relating to the transaction. The buyer normally posts a deposit for the property that can be upwards to 10% of the total purchase price of the property in question.
Once the contract for sale is signed and notarized, the document is then taken to the Internal Revenue Office. At this juncture, a determination is made as to what taxes will be due and owing because of the sale. The appropriate taxes need to be paid in advance of the final conveyance of the property from the seller to the buyer.
Should the buyer chose to appoint a Power of Attorney, his or her representative will need to produce a Passport and/or ID card.
After the financing completely is arranged and all of the conditions set forth in the contract for sale have been realized, the contract for sale and a certificate of title (designating the buyer as the owner of the property) is then filed with the Title Registrar’s Office. After payment of tax, the Seller has to deposit the following documents at the corresponding Title Registry:
• Original of the Purchase and Sale Agreement
• Title Certificate of the property (Owners duplicate)
• Original documents evidencing tax payment
• Copy of Buyer’s and Seller’s identification card (Cédula de Identidad y Electoral or passport)
