Buying Process
How does the buying process work?
Buying a property in the Dominican Republic is quite easy!
All you need is a valid passport ! Once you have chosen the property you wish to purchase, you will firstly make an offer. This document reflects only the highlights of the transaction , showing the name of the buyer , the address of the property, the price and finally the terms and conditions.
Reservation Deposit
The reservation deposit to take the property off the market while due diligence happens is anywhere from US$5,000 to 30% depending on the seller or developer when purchasing pre-construction options. Once the buyer and seller have signed the initial offer , you may move on to hiring a LAWYER to assist you . Hiring a lawyer is imperative, so that the legal diligence can be done to assure that no liens or debts are attached to the property you are purchasing.
Real Estate Attorney
Should you be buying a pre-construction option the developer will offer the use of their lawyer which is not recommendable, you could witness a conflict of interest, so it is highly recommended to hire a lawyer that will solely represent you in the transaction. We can offer recommendations on great real estate lawyers who speak English and French as well as Spanish.
Contract
All contracts in the Dominican Republic are written in Spanish which is the legal language of the island. Most lawyers will offer a translated version of the contract so you understand well all the clauses mentioned. Note that lawyers in the Dominican Republic have notaries on staff that will notarize your sales contract to make it legal. Once the contract is signed by both parties, the buyer can assume possession of the property . If the contract stipulates further payments, these must be made in accordance to the schedule mentioned in the sales contract.
All contracts in the Dominican Republic are written in Spanish which is the legal language of the island. Most lawyers will offer a translated version of the contract so you understand well all the clauses mentioned. Note that lawyers in the Dominican Republic have notaries on staff that will notarize your sales contract to make it legal. Once the contract is signed by both parties, the buyer can assume possession of the property . If the contract stipulates further payments, these must be made in accordance to the schedule mentioned in the sales contract. This fee includes the lawyers fees, title transfer fees , notaries, stamps, checks and any other miscellaneous closing costs associated with the purchase of having the property transferred to your name.
Taxes
The Dominican Republic is an ideal location to purchase your Caribbean home since we are TAX exemption friendly. You can purchase a home valued US$165,000 and pay no annual taxes. Should you go over that amount you will simply pay 1% of the difference.