Foreign investors have full freedom to acquire and invest in real estate in any area of the Dominican Republic.
In the Dominican Republic, property registration operates under a Torrens system, where each registered property has a definitive title certificate issued by the Real Estate Jurisdiction, which includes the owner, boundaries, and encumbrances, ensuring legal security for the purchase.
The process of acquiring or buying a property involves several key stages:
Due Diligence:
Verification of the title, boundaries, encumbrances, liens, and pending legal issues. This must be conducted independently by the buyer’s lawyer.
Contract Signing:
Signing of contracts between seller and buyer, detailing the agreements reached during negotiations. These must be reviewed by each party’s lawyers and are broken down as follows: Reservation Agreement: where the property is reserved with an amount ranging from US$2,000.00 to US$5,000.00. After the reservation period ends, the Promise of Sale Contract is executed.
Conditional Sale or Purchase Option:
This contract regulates the construction or delivery of the property, as well as penalties, payments, and obligations. It must be reviewed by the lawyers of both parties.
Definitive Sale Contract:
The contract signed upon delivery of the property and final payment, completed at the closing. It must be reviewed by the lawyers of both parties.
Registration and Tax Payment:
The real estate transfer tax in the Dominican Republic is 3% of the property’s value. Subsequently, the documentation must be submitted to the Title Registry to register the new owner.
Each step is accompanied by specialized legal advice to ensure transparency and avoid surprises. After the transfer is registered, the buyer receives the definitive title in their name, fully protected against third parties.
Contact us for comprehensive legal guidance on real estate investments in the Dominican Republic. Our lawyers will guide you through the entire process: due diligence, contract review and drafting, formalization of the transfer process, and obtaining the Title Certificate.
