Most buyers find the systems for purchasing real estate in Dominican Republic to be very similar to that of North America, so the process won’t seem foreign or strange.
Although the official language is Spanish, your property lawyer will speak English and explain all documents and processes thoroughly. Become an expert below, where we list each step on the Dominican’s buyer’s process.
The Dominican system is very similar to that of North America, all purchases are viewed equally under the law, so this means you have the same right as a Dominican as it pertains to real estate. Therefore, all parts to make a villa your own are divided in 8 main steps:
1. Choose a property
The first thing is to choose a property whether it is a new condo, resale, or new villa; whether you want to build or buy something already existing.
2. Offer of purchase
After you determine that, the first thing you need to make is an offer of purchase. This is considered a detailed offer that you prepare with your real estate agent and then presented to the vendor or developer.
3. Accepted offer
During the conditions of a sale, you might go back and forth a few times but eventually, the third step is an accepted offer.
In the accepted offer the vendor agrees and signs off on the purchase price and conditions as set out in the offer of purchase. Then, you would need to go meet with the property lawyer to get in-depth instructions and information on how it all works from a legal perspective.
4. Due diligence
The fourth step is the deposit and the due diligence. As a buyer, now is the time to either completely pay for the property, send a deposit, or set up a staged payment, this is wired to your lawyer’s trust or escrow account. The money is held pending the next contract and completion of the lawyer’s due diligence on the property, which includes: clean title, condo fees, etc.
5. Contract of sale
The next step is a contract of sale, this document is similar to the offer of purchase but is prepared by the property lawyer in Spanish. It outlines the conditions of the sale. You are provided an English version of the document to sign off on.
6. Balance of funds
The sixth thing is the balance of funds: you as the buyer send the balance of the monies owing unless it’s on a progress draw construction payments. Then the money is sent at scheduled intervals during construction.
7. Deed of sale
The seventh element is the deed of sale or “compra de venta”, this is the final contract that is used to convey the property from the seller to the buyer. In the case of a resale or quick sale, the law firm will go directly to this contract and skip the preliminary step of the promise of sale.
8. It’s all YOURS!
Lastly, the eighth step is Welcome Home! You as the buyer receive ownership of the property and the title is registered to your name. In the case of a company then a new company name is established with the buyers owning the shares of the company and that’s really it.
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”.