Buying Process

How do real estate transactions happen in The Dominican Republic? What are the requirements for the buyer etc? The following is a brief explanation of The Dominican Republic buying process. For more detailed information, please contact us.

The Dominican Republic Buying Process

Which property?

The buyer tours the area, views real estate, meets other owners, and sees a good overview of The Dominican Republic. He/she chooses either a condo, villa or lot for purchase – new or resale.

Written offer

An “Offer to Purchase” is prepared by the AEY Investments broker, signed by the buyer, and then presented to vendor/developer. Typically a good faith deposit is expected at this time.

Offer accepted

The vendor agrees and signs off on the price and conditions as set out in the “Offer to Purchase”. Buyer meets with property attorney for instructions and further information.

Confirming the deal

Typically a 10% deposit is wired or paid in cash to their attorney’s trust/escrow account. Monies are held pending the contract of sale and completion of the attorney’s due diligence on the property.

Contract of sale

Normally a 3-4 page document, outlining the specifics of the deal, signed by both seller and buyer. This document is notarized, and although the official language is Spanish, an English translation can be obtained.

Balance of funds

According to the dates agreed, funds should be wired to the buyers attorney. In the case of a new build, it is more than likely that several payments will be made according to the construction draw schedule.

Definitive bill of sale

In Spanish, “Contrato definitivo de venta”. This is the final contract used to convey the property from seller to buyer. This contract is deposited at the title registry and the according transfer taxes are paid. The property transfer tax is 3% of the appraised value according to the tax office.

Done deal!

Once all funds are transferred (unless owner finance is involved) the new buyer gains access to their new property.

The Dominican Republic Buying Process