Property ownership in Dominican Republic

Buying real estate in the Dominican Republic is the same for citizens as it is for foreigners and there are no restrictions as to where you may own property. The first step for any real estate transaction in the Dominican Republic for foreigners will be to find a qualified attorney to supervise the transaction and perform due diligence on behalf of the buyer. There can be many minor and sometimes major obstacles to any real estate transaction, especially in a foreign country.

Once you find an attorney, you may start looking for properties with the aid of a real estate agent. Real estate agents in the Dominican Republic do not have any special licensing requirements or any sort of professional training and do not typically supervise a real estate transaction like American real estate agents. Your attorney will supervise the process to ensure all legal matters are clear and the transaction runs smoothly.

Once you’ve found a home or condo or piece of property you like, it’s important to know what the market prices are for comparable properties. Many times foreigners are so dazzled by the low prices and what they get for that price they often forget the property may actually be overpriced. Don’t be fooled by seemingly low prices, know the local market. Despite the low prices no one wants to over pay for a property.

Often negotiations between buyers and sellers are verbal. This means sitting in a restaurant or even at the property and haggling with the seller. Once a price has been agreed upon, your attorney may proceed in one of two ways. He may conduct all due diligence before a promise of sale is drafted or the promise of sale may be drafted immediately with conditions pertaining to clear title and the requirement of the seller’s signature on the deed once payment has been completed.

Despite the fact that an attorney is supervising the transaction and should have the buyer’s best interests in mind this is not always the case and many times buyers are not adequately protected. Buyers should be aware of two very important aspects of the sale. These should be addressed in every promise to purchase. The first clause should address the condition of clear title before final payment is made and if clear title can not be proven the buyer has no obligation to purchase; the other has to do with the initial deposit made by the buyer as a sign of good faith. Escrow in not a normal part of the Dominican real estate process. Many times the initial deposit will be handed over to the seller with no recourse for the buyer to get his funds back if the sale is not concluded. Your attorney should make provisions for both situations in the promise to purchase contract to ensure the buyers protection.