Buying a property in the Dominican Republic can serve various purposes. It is crucial to identify your primary objective:
- Investment: Acquiring property with the aim of generating income through rent or resale.
- Permanent Residence: Purchasing real estate for your long-term dwelling.
- Second Holiday Accommodation: Procuring a property for short-term stays during vacations.
- Vacation and Income: Obtaining real estate for personal use during vacations and renting it out when not in use.
Once you’ve defined your goal and decided on your investment amount, the process of purchasing real estate commences. It’s essential to consult with experts well-versed in the intricacies of this transaction to avoid any missteps.
The process of purchasing READY-TO MOVE REAL ESTATE in the Dominican Republic entails the following stages:
- Selection and Inspection of Real Estate: Choose the desired property with the assistance of a professional agent who can guide you through inspections and assess the property’s infrastructure.
- Signing the Purchase Offer: After selecting your property, send a signed purchase offer to the seller, with the agent’s assistance in specifying all transaction terms.
- Deposit Payment: Deposit (standard 10% of the cost) the required amount into the real estate agency’s account, where it remains until the final settlement. The terms for deposit return or forfeiture are outlined in the purchase offer.
- Engage a Lawyer: Hire a lawyer who will review documents and oversee the transaction until property rights are registered, and the title is obtained.
- Signing of the Final Purchase and Sale Agreement: After document verification and lawyer confirmation, the transaction date is set.
- Payment of the Remaining Funds and Contract Notarization: Following the contract signing, the buyer settles the outstanding balance with the seller, and the notary certifies the contract, thus transferring ownership to the buyer.
- Re-registration Tax Payment: The buyer is required to pay a tax amounting to 3% of the property’s value to re-register ownership rights.
- Awaiting a New Legal Title: Once the ownership registration is completed, the buyer must wait to receive the new legal title, a process that typically takes between 1 to 4 months.
The process of purchasing REAL ESTATE UNDER CONSTRUCTION closely resembles that of ready-made real estate but involves installment payments:
- Following property selection and project assessment, a reservation payment is made to the developer’s account to secure a specific unit (the amount varies per developer but typically ranges from $1000 to $5000 USD).
- After the deposit, there’s usually a waiting period for documentation preparation and legal verification (ranging from 2 to 4 weeks). Then, a preliminary purchase and sale agreement is signed, and the buyer pays an initial payment, usually a percentage of the object’s cost (typically 15%-30%).
- While construction progresses, the buyer makes monthly payments, as stipulated in the contract (usually 20%-40% of the total cost, divided over the months from contract signing to project completion).
- When the property is ready for delivery, the remaining amount is paid, the primary sales contract is executed, and the buyer becomes the rightful owner.
- At this stage, the new owner must pay a 3% tax to the state on the right of ownership and await the issuance of the Title.
A few important points to note:
- All documents in the Dominican Republic must be manually signed in blue ink.
- If the buyer or seller cannot be present during contract signing, it is essential to appoint a responsible individual and grant them power of attorney.
- The buyer of real estate in the Dominican Republic can be a citizen of any country but must have a legitimate source for the funds used in the purchase.