Buying Real Estate in Dominican Republic
The Country
White sandy beaches, impressive mountain ranges veined with spectacular rivers and waterfalls, and saltwater lakes teeming with exotic wildlife are just part of the Dominican Republic's appeal.
The climate of the coastal zone is warm, tropical. It is fresher in the central region. The average temperature during the entire year is 25 degree Celsius (77F).
The Dominican Republic spans an area of 48 679 km2 and occupies two thirds of the island known as Hispaniola.
Buying Real Estate
On the north coast of the Dominican Republic you will find the province capital Puerto Plata and the small, pulsating cities, Sosua and Cabarete. The best real estate properties for sale are located in this area of the island. You can buy property in stunning locations from£50,000
In 1998, a law was passed allowing foreigners to buy property in the Dominican Republic with the same rights and obligations as a Dominican citizen. The only requirement is that the Title Registry Offices keep a record, for statistical purposes, of all purchases made by foreigners. Acquiring property here is straightforward. However to get the best protection you should get a trustworthy, reliable attorney, and title insurance.
The Buying process
1. Buyer and seller sign a “Contract of Sale” before a Notario who authenticates it. (Notaries in the Dominican Republic are required to have a law degree.) The Contract of Sale contains the legal description of the property, the price, and conditions of sale.
2. The authenticated Contract is then taken to the nearest Internal Revenue Office for payment of the appropriate taxes.
3. The Contract of Sale and the Certificate of Title of the seller are deposited at the Title Registry Office for the jurisdiction where the property is located, and the sale is recorded.
4. The Title Registry Office issues a new Certificate of Title in the name of the buyer and cancels the old Certificate issued previously to the seller.
The whole process can take from a few days to a few months
Taxes and Closing Costs
Expect to pay approximately 5% of the sale price for taxes and closing costs. This amount includes a transfer tax of 4.48%, document taxes, special stamps for registration, and tips. Taxes must be paid before filing the purchase at the Title Registry Office. Many buyers, with the complicity of their attorneys or notaries, have been known to evade paying part of the transfer tax by lowering the true purchase price in the Contract of Sale. This is common practice in the DR and it has become so blatant and widespread that the tax authorities have now set a minimum value for properties in some locations.
Your Real Estate Attorney should check that the following are all in order
Permits: Have your attorney confirm that the property may be used for the purposes you require
Title Search: A certification should be obtained from the Title Registry Office regarding the status of the property
Survey: An independent surveyor should verify that the property being sold coincides with the one shown on the survey provided by the seller a qualified builder or architect should examine any improvements to be made to any structures to confirm that the plans presented are correct and that the improvements are in good condition.
Possession: Your attorney should ensure that the seller is in possession of the property and that no tenants or squatters rights exist.
Employees: The seller should pay any employees working on the property their legal severance up to the time of the closing; otherwise you may find yourself liable for these costs later.
In association with our experienced Partners in Dominican Republic we are happy to take you every step of the way for a trouble free purchase.
Getting There
The country has seven airports: It is approx 9 hour flight from London, 2 ½ hours from Miami, 3 ½ hours from New York and 10 hours from Madrid.
Dominican Republic Facts:
Religion: 95% Roman CatholicGovernment: representative democracyHead of State: President Leonel Fernández Inflation: 5.1%Major Industries: Tourism, sugar refining, nickel and gold mining, cement, tobacco.Major Trading Partners: USA, Venezuela, Belgium
The official language of the Dominican Republic is Spanish. It is very common to find English, French, Italian and German speaking people at important tourist destinations.
National currency is the Dominican peso. The real value of the Dominican peso varies in accordance to the value of the U.S. dollar.
Top Tip use the free property finding service at www.homesgofast.com to find your dream home in the caribbean .Go to www.caribbeanhomes4sale.com for buying tipws in the Caribbean
Nicholas Marr
Director
Marr International Ltd
www.homesgofast.com
