Foreign investors have full freedom to acquire and invest in real estate in any area of the Dominican Republic.In the Dominican Republic the real estate or property registry operates under the Torrens system: every registered property has a definitive Certificate of Title issued by the Real Estate Jurisdiction, which includes ownership, boundaries, and encumbrances, ensuring full legal security for the purchase.
The purchase process involves several key stages:
Due Diligence
Verification of the title, boundaries, encumbrances, liens, and any pending legal issues. This must be conducted independently by the buyer’s attorney.
Contract Signing
The seller and buyer formalize the terms agreed during negotiations through several contracts, all of which must be reviewed by each party’s legal counsel:
- Reservation Agreement: Used to secure the property with an amount typically ranging from US$2,000.00 to US$5,000.00.
- Promise of Sale / Conditional Sale / Purchase Option Agreement: This contract outlines the construction or delivery terms of the property, deadlines, penalties, and payment structure.
- Definitive Sale Agreement: Signed at closing, upon delivery of the property and final payment.All contracts must be reviewed by the attorneys of both parties.
- Registration and Payment of Taxes: The real estate transfer tax in the Dominican Republic is equal to 3% of the property’s value. After payment, the documentation is submitted to the Title Registry to record the new owner.
We accompany each step with specialized legal guidance to ensure transparency and prevent unexpected issues. Once the transfer is registered, the buyer receives the definitive Certificate of Title in their name, with full protection against third parties.
Contact us for comprehensive legal support in real estate investments in the Dominican Republic.Our attorneys will guide you through the entire process: due diligence, contract drafting and review, formalization of the transfer, and issuance of the Certificate of Title.
