What is the Process of Purchasing Property in the Dominican Republic?
In this article we will walk you through the 5 steps of buying property in the DR
- Foreigners purchasing property in the Dominican Republic
- Step 1 – Visit the property
- Step 2 – Make an offer
- Step 3 – Title search
- Step 4 – The sales contract
- Step 5 – Issuing Certificate of Title
So you are in love with the idea of living in a beautiful Caribbean country and would like to buy property in the Dominican Republic, but how? Just like purchasing a property anywhere, it takes time, research, and working with someone trustworthy and experienced – like Amanda Petty, founder of Caribbean Breeze Properties.
It’s pretty straightforward, but not the same as in North America, for example. In this post we’ll explain the process of purchasing a property in the Dominican Republic step-by-step and add a few more details in this blog.
Foreigners purchasing property in the Dominican Republic
As of 1998 there are no restrictions of foreigners purchasing a property in the Dominican Republic. The only requirement is that the Office of Title Registry keep a record. Since the Dominican Republic has some of the best property values of the Caribbean, it’s a great place to invest.
Steps to purchasing property in the Dominican Republic:
Step 1 – Visit the property.
This will be the longest part of the process, finding out what is best for you. Researching where you would like to invest; in a housing development or in a condominium , on the beach or near the beach or in the mountains. Those are only a few of the questions to consider when you start your search. However, you won’t be alone in this process and any questions you may have, you can count on us to help guide you.
Step 2 – Make an offer and a binding Promise of Sale.
A Promise of Sale is a formal document that binds both parties and needs to be signed in front of a Notary Public. The Promise of Sale should include:
- Full name and identification numbers of the parties, if the seller is married, the spouse must also sign.
- Description of the property to be purchased
- Purchase price and payment terms
- Default clause
- Date of delivery of property
- Due diligence required or completed
- Representation by the seller and remedies in case of misrepresentation
- Obligation by seller to sign the Deed of Sale upon final payment.
Step 3 – Verify that all documents such as the title is clean.
It is always recommended to check the status of a property through the Title Registry Office. To do this, the seller should provide the buyer with the following documents:
- Copy of the Certificate of Title to the property.
- Copy of the official survey of the property, or deslinde in Spanish.
- Copy of identification
- Copy of a receipt showing the last property tax payment (IPI) and a certificate from the Internal Revenue Office stating that the seller is current with his or her tax obligations
Step 4 – The Deed of Sale contract is prepared.
The Deed of sale contract is prepared and needs to be signed by both seller and buyer in presence of a Notary Public. This contract will be present to the nearest Internal Revenue Office and a request for appraisal of the property is made. These documents are then deposited at the Title Registry office.
Step 5 – Certificate of Title.
Issuing a Certificate of Title to the buyer means that the sale has been recorded and the property now belongs to the buyer as of that date. This last step could take anywhere from a few days to a few months.
Want more in depth details on purchasing property in the Dominican Republic? Check out this article issued by Guzman Ariza Attorneys at Law.
If you need some convincing as to why retire here or move here with your family, read our 5 reasons why to live or retire to the Dominican Republic.