Buying Property In Dominican Republic real Estate Market
The transactions that take place in the real estate market in Dominican Republic are regulated by Property Registry Law No. 108-05 and Regulations. This came into force on April 4th, 2007. Property ownership in Dominican Republic is recorded by Certificates of Title that is issued by Title Registry Offices.
The real estate transaction pattern that takes place in the real estate market of Dominican Republic is different from the transaction pattern that takes place in North America. In North America, the buyer offers a price to the seller and if it is accepted, the same is documented wherein the seller gives his acceptance in writing.
In Dominican Republic, a verbal agreement related to the price takes place between the buyer and the seller. Thereafter, a solicitor or an attorney prepares a Promise of Sale and both the parties sign the agreement. The Promise of Sale can also be prepared by a notary public who is qualified.
The buyer usually hires an attorney prior to making any deposit or signing any document. After due diligence, the Promise of Sale is prepared.
Salient features of Promise of Sale
The Promise of Sale is a formal binding agreement that is signed by the buyer as well as the seller. This is usually done in front of the Notary Public. It is as important as a Deed of Sale. It contains extensive information about the agreement that takes place between the buyer and the seller till the time the property is conveyed to the purchaser.
What does the Promise of Sale contain?
The Promise of Sale should contain the following provisions –
- Legal details of the property that is to be bought
- Names of the parties involved in the transaction
- Price at which the property is being bought
- Terms of payment
- Details of due diligence either done or requires to be done
- Date on which the property is likely to be conveyed
- Signature of the seller on receipt of the final payment after conveyance
It has been observed that in a Promise of Sale that is prepared by a solicitor, there is very less protection for a buyer. In most of the cases, the buyers do not get adequate protection and there are many deficiencies in the documentation.
What if foreigners purchase real estate in Dominican Republic?
There are no limitations as such if a foreigner wants to buy real estate in Dominican Republic. Earlier there was a rule that the intending purchaser has to take “Presidential” approval to buy property excluding few instances. However, as per Decree 21-98, January 8th 1998, this rule has been eradicated. However, it is mandatory for the transaction to get documented for statistical purpose. The details are maintained by the Title Registry Offices.
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