7 Steps to Buying A Property in The Dominican Republic

7 Steps to Buying A Property in The Dominican Republic

Your Perfect Villa

is waiting for you at casa linda

Retiring in the Dominican Republic is becoming more popular amongst Americans, Canadians and Europeans. The beautiful weather, gorgeous beaches, and delicious food create the perfect home for retirees looking to relax. 

Buying property in the Dominican Republic is very similar to buying property in North America. All the purchases are viewed equally, allowing both foreigners and Dominicans equal legal rights to purchase a property. Read on to discover the steps to buying a property in the Dominican Republic.

  1. Choose A Property

The first step a property owner has to take is finding the right property. In the Dominican Republic, you can choose your property based on your unique needs. Depending on your budget and home needs, you can purchase new properties such as villas or condos or buy existing resale properties – you can even build your own villa or condo! 

  1. Make an Offer of Purchase

The second step to buying a property is to contact your real estate agent and go over the purchase details. A detailed offer that outlines all the conditions of the sale you have discussed and agreed to is prepared by your real estate agent and presented to the vendor or developer. Conversations between you and the vendor might go back and forth a few times as you iron out the details and reach a mutual agreement.

  1. Accepted Offer

Once the vendor agrees to your purchase offer, they will sign off on the purchase price and the conditions previously stated in the offer. You must meet up with a property lawyer to give you legal guidance and information about how buying a property works once the offer is accepted. This information will help you better understand the legalities of purchasing a property in the Dominican Republic.

buying property in the dominican republic
  1. Deposit or Due Diligence 

After the offer has been accepted, you will need to either completely pay for the property you are buying, send a deposit or a staged payment. In the Dominican Republic, this money is wired to your lawyer’s trust or escrow account. The money is held pending the next contract and the completion of the lawyer’s due diligence on the property, including condo fees, clean title, liens, etc.

  1. Contract of Sale (Spanish and English)

The contract of sale is similar to the accepted offer mentioned previously, but it is prepared by the property lawyer in Spanish. The conditions of the sale that you have agreed on are outlined in the contract, and you are provided with an English version to sign off. 

  1. Balance of Funds

If you’re buying a property that is either new or existing, you will then send the balance of the funds owing. If your property is being built from scratch and it’s still in progress, then the money is sent at scheduled intervals during construction. In both cases, once the property is ready for you to move in, you will have had to pay the full balance prior.  

  1. Deed of Sale (Contract de Vente)

The final contract for buying a property in the Dominican Republic is called the deed of sale. This contract conveys the property from the seller to the buyer. In the case of resale or quick sale, the law firm will often go directly to the deed of sale contract and skip the step of the promise of sale. 

  1. Receive Ownership

Once you complete the deed of sale, you will now receive ownership of the property, and the title is registered in your name. All that’s left is moving into your new home!

From finding the perfect property to moving in, Casa Linda Quality Communities will help you with all stages of buying a property in the Dominican Republic. Our buying process is simple, and our experts will be there to help you every step of the way. 

Contact our team today to learn more about buying your new home in the Dominican Republic! 

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Important Elements When Purchasing Property in DR

Important Elements When Purchasing Property in DR

Important Elements When Purchasing Property

in Dominican Republic

By Colleen Valerio

Buying a property in the Dominican Republic is very similar to that of North America and all purchases are viewed equally under the law whether you’re Dominican or a foreigner. This means you both have the same legal rights as they pertain to real estate. 

There are a lot of great condos and projects in the area that we are happy to show, however, Casa Linda is where we chose to live. When showing properties, we are very particular, we only show properties that are in gated communities. 

Watch full video here:

At Casa Linda, we look over all the important elements when making a purchase. Starting with the administration component. The ability to have a lock-up and leave means that you can go home, have somebody pay your bills, and make sure your house is taken care of. Also, a rental management component, if you wish to use your property as a rental when you’re not here and make some income, these services are available and not offered by everybody. 

Casa Linda is a one-stop-shop in terms of services; we stand by you all the time. That is something you need to consider, that your real estate agent is going to be there throughout the whole process and after your sale too.

Option 1: New Construction

When looking over new construction, you now have to pick a lot, look over plans, establish an offer, determine what you’re buying at the price. If you’re buying resale is not like coming down with a suitcase full of cash, but instead, we recommend you come with a contract, set a timeline, you go home, and send the money down to your real estate lawyer, whom you’ve already been previously introduced to and then you take possession. 

If you’re buying something that needs to be built first, you need to do a lot deposit and its construction draw staged payments that are also sent to the lawyer. 

Offer of Purchase

An “offer of a purchase” is the contract we have in this country that originally determines the amount and the “promise of sale” which is the document that outlines everything in Spanish that conveys the title of the property to you. As a foreigner, you would always get an English version to approve, after the end of all that and once you finished paying for the property, the title is transferred to your name, just like it’s done anywhere else.

Mortgages

Mortgage financing is a little bit different, now you have a bank involved in the process. The bank acts as an interim, it has a line on the title and interest in the property. After being in the mortgage business for so long in North America, we don’t find the process to be dissimilar at all.

We always recommend foreigners to bring cash, the process is just much easier, lawyers here speak English, especially the ones we take you to. The money is always sent to that lawyer’s trust account in the United States an escrow account. If you’re not here this money is distributed by your signature through a power of attorney to the company that you bought the house from. 

Option 2: Resale

In terms of resale, if you purchase a villa or condo that has already been constructed, you’re now dealing with a third person, the vendor. It is really important that your real estate agent understands the real estate laws and represents your interests.

buying dominican republic real estate

At the end of the day, everything done here is very professional, transparent, and similar to what we’re used to, except the fees. Fees are way lower, you can count on legal fees between 0.75% and 1% of the purchase price, including disbursement.

If you are planning for retirement or seek a home base with a lower cost of living, it’s time to check out the Dominican Republic! ? Learn more about Dominican features and amenities through our video series “Buying Real Estate in the Dominican Republic”.

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colleen valerio

Colleen Valerio, Marketing Director

Originally from western Canada, Colleen came to the DR over 15-years ago. She has been helping buyers find their tropical dream homes ever since.