Buying process Dominican Republic

The Buying process in The Dominican Repubic

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.
The authenticated Contract is then taken to the nearest Internal Revenue Office for payment of the appropriate taxes.
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.
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 lawyer should check that the following

Permits: They willconfirm 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.