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Copyright Dominican Republic Properties 2009
Copyright Dominican Republic Properties 2009
Legal Matters
Property purchase in the Dominican Republic differs in many aspects to the procedures you may be used to in the United States, Great Britain or the rest of Europe but this is no reason to be concerned. As in any property transaction utilising the services of a qualified and experienced Solicitor is essential and will ensure that your purchase proceeds trouble free and that you receive a good legal title to your dream home.
We are more than happy to introduce you to a Dominican Abogado whose expertise and professionalism we know to be of the highest order. We are aware that many people will recommend not accepting introductions to legal advice from an agent in view of the possibility of a conflict of interest but you can be assured that any introduction from us is exclusively on the basis of our knowledge of their work and professional standards. You become their client and we have no influence on their advice or recommendations. Of course you are equally at liberty to instruct any legal firm you feel confident to use.
To provide a full insight into all the legal aspects here is impossible because much depends on the type of property you may decide to purchase but we have listed below some of the main areas which you should know about, including the procedure normally followed, taxes involved, costs incurred and some information on inheritance laws related to the Dominican Republic which may influence how you decide to make your purchase. You could also go to our forum page to see if there is any relevant information there or pose a question relating to your personal situation.
The first point to make is that there are no restrictions on foreigners purchasing and owning land or property in the Dominican Republic and all property transactions are governed by the Property Registry Law Nº 108-05 and its regulations in force since 4th April 2007. Ownership is proven by a “Certificate of Title” issued by the Title Registry Office.
Once you have found a property you would like to purchase and have agreed a price with the vendor the common procedure is to have prepared a "Promise of Sale". This is a formal document, usually prepared by an attorney (solicitor or lawyer) or a notary, and signed by both parties in front of a Notary Public. It is a very important document as it commits both parties to the transaction and will involve the purchaser paying a deposit. It is essential that this document contains all the necessary information relating to both purchaser and vendor and the property and needs to provide the opportunity for the purchaser to withdraw if, for example funding becomes unavailable, there are legal problems with the title or unpaid debts taxes or mortgages on the property. The purchaser, in conjunction with his solicitor, should address the following points:-
1.Have received a copy of the Vendor's Title Certificate
2.Copy of Official survey (deslinde) This is a new Property Registry Law and without this document sales of properties cannot be recorded except for (a) Sales before April 4th 2007 recorded before 4th April 2009 or (b) the first sale of an entire property after April 4th 2007.
3.Receipts for last property tax bill or exemption certificate.
4.Internal Revenue office certificate confirming vendor is current with his tax liabilities.
5.Copies of utility contracts and receipts to confirm these are up to date.
6.Title search to confirm ownership and any mortgages or liens affecting the property.
7.Independent survey to confirm property being sold is that shown on the sellers survey.
8.If the property has been subject to renovation or extended plans need to be checked and the quality of the work confirmed.
9.Permits checked to determine that it may be used for the purposes the purchaser requires. Particularly important if the property is a commercial or partially used for commercial purposes.
10.Occupancy. Ensure there are no tenants or squatters at the property and if the boundaries are not clearly defined have them fenced.
11.If the vendor employs any staff at the property he should terminate their contract paying any due severance monies. If not the purchaser can acquire this liability.
12.If the property is a condominium (a community of properties) copies of the regulations, last community meetings and certificate that the condo fees due by the vendor are up to date.
Once all the legal investigations have been completed satisfactorily a “Deed of Sale” will be signed in front of a Notary Public and the balance of the agreed price for the property paid to the vendor. In a “cash sale” purchase it is often simpler and cheaper to go directly from the verbal agreement to this step instead of signing a Promise of Sale.
The notarised Deed of Sale is then taken to the nearest Internal Revenue Office and an application for an appraisal of the property is made. Checks will be made to ensure the vendor is up to date with all his tax obligations and an inspector instructed to carry out the valuation to determine what taxes are due. Bear in mind these will depend on the appraisal by the inspector and not the sale price actually paid. This step may take days or weeks depending on the amount of work the inspector has at that moment in time.
Once this has been completed, and all taxes due paid, the Deed of Sale, the Certificate of Title of the vendor and the documentation provided by the Internal Revenue is presented to the Title Registry Office where the purchase will be recorded and a new Certificate of Title issued. The property belongs to the new owner as soon as the sale is recorded at the Registry but again the new Certificate of Title may not be available until after several days, weeks or months depending on how busy the Registry Office is.
As previously mentioned the above is only a basic outline of the procedures involved in purchasing a property in the Dominican Republic. Each transaction is different and will depend on the type of property involved and the circumstances of both the vendor and purchaser. If you are intending to acquire a property in the Dominican Republic and would like specific details of the necessary and secure steps to take please use our contact form to ask any questions.
Property purchase in the Dominican Republic differs in many aspects to the procedures you may be used to in the United States, Great Britain or the rest of Europe but this is no reason to be concerned. As in any property transaction utilising the services of a qualified and experienced Solicitor is essential and will ensure that your purchase proceeds trouble free and that you receive a good legal title to your dream home.
We are more than happy to introduce you to a Dominican Abogado whose expertise and professionalism we know to be of the highest order. We are aware that many people will recommend not accepting introductions to legal advice from an agent in view of the possibility of a conflict of interest but you can be assured that any introduction from us is exclusively on the basis of our knowledge of their work and professional standards. You become their client and we have no influence on their advice or recommendations. Of course you are equally at liberty to instruct any legal firm you feel confident to use.
To provide a full insight into all the legal aspects here is impossible because much depends on the type of property you may decide to purchase but we have listed below some of the main areas which you should know about, including the procedure normally followed, taxes involved, costs incurred and some information on inheritance laws related to the Dominican Republic which may influence how you decide to make your purchase. You could also go to our forum page to see if there is any relevant information there or pose a question relating to your personal situation.
The first point to make is that there are no restrictions on foreigners purchasing and owning land or property in the Dominican Republic and all property transactions are governed by the Property Registry Law Nº 108-05 and its regulations in force since 4th April 2007. Ownership is proven by a “Certificate of Title” issued by the Title Registry Office.
Once you have found a property you would like to purchase and have agreed a price with the vendor the common procedure is to have prepared a "Promise of Sale". This is a formal document, usually prepared by an attorney (solicitor or lawyer) or a notary, and signed by both parties in front of a Notary Public. It is a very important document as it commits both parties to the transaction and will involve the purchaser paying a deposit. It is essential that this document contains all the necessary information relating to both purchaser and vendor and the property and needs to provide the opportunity for the purchaser to withdraw if, for example funding becomes unavailable, there are legal problems with the title or unpaid debts taxes or mortgages on the property. The purchaser, in conjunction with his solicitor, should address the following points:-
1.Have received a copy of the Vendor's Title Certificate
2.Copy of Official survey (deslinde) This is a new Property Registry Law and without this document sales of properties cannot be recorded except for (a) Sales before April 4th 2007 recorded before 4th April 2009 or (b) the first sale of an entire property after April 4th 2007.
3.Receipts for last property tax bill or exemption certificate.
4.Internal Revenue office certificate confirming vendor is current with his tax liabilities.
5.Copies of utility contracts and receipts to confirm these are up to date.
6.Title search to confirm ownership and any mortgages or liens affecting the property.
7.Independent survey to confirm property being sold is that shown on the sellers survey.
8.If the property has been subject to renovation or extended plans need to be checked and the quality of the work confirmed.
9.Permits checked to determine that it may be used for the purposes the purchaser requires. Particularly important if the property is a commercial or partially used for commercial purposes.
10.Occupancy. Ensure there are no tenants or squatters at the property and if the boundaries are not clearly defined have them fenced.
11.If the vendor employs any staff at the property he should terminate their contract paying any due severance monies. If not the purchaser can acquire this liability.
12.If the property is a condominium (a community of properties) copies of the regulations, last community meetings and certificate that the condo fees due by the vendor are up to date.
Once all the legal investigations have been completed satisfactorily a “Deed of Sale” will be signed in front of a Notary Public and the balance of the agreed price for the property paid to the vendor. In a “cash sale” purchase it is often simpler and cheaper to go directly from the verbal agreement to this step instead of signing a Promise of Sale.
The notarised Deed of Sale is then taken to the nearest Internal Revenue Office and an application for an appraisal of the property is made. Checks will be made to ensure the vendor is up to date with all his tax obligations and an inspector instructed to carry out the valuation to determine what taxes are due. Bear in mind these will depend on the appraisal by the inspector and not the sale price actually paid. This step may take days or weeks depending on the amount of work the inspector has at that moment in time.
Once this has been completed, and all taxes due paid, the Deed of Sale, the Certificate of Title of the vendor and the documentation provided by the Internal Revenue is presented to the Title Registry Office where the purchase will be recorded and a new Certificate of Title issued. The property belongs to the new owner as soon as the sale is recorded at the Registry but again the new Certificate of Title may not be available until after several days, weeks or months depending on how busy the Registry Office is.
As previously mentioned the above is only a basic outline of the procedures involved in purchasing a property in the Dominican Republic. Each transaction is different and will depend on the type of property involved and the circumstances of both the vendor and purchaser. If you are intending to acquire a property in the Dominican Republic and would like specific details of the necessary and secure steps to take please use our contact form to ask any questions.
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