How to obtain a property title in Dominican Republic?

Obtaining the title of property in Dominican Republic is a fundamental aspect that, as a good real estate investorYou should bear in mind when carrying out any operation.

Of course, when buying an apartment or home, you need to to obtain title to real estate, so that you can have an official certification that the property belongs to you.

A homeowner's title deed in the Dominican Republic provides legal certainty, so any real estate investment requires obtaining this type of document to avoid legal conflicts, although the time to obtain it may vary if you buy the property directly from the promoter (developer), or if the property already has an individualized title.

In this post we will explain what does the title to a house or property consist of? and the steps you must take to achieve it.

What is the title of a real estate property in the Dominican Republic?

The title or ownership role is an official document, which certifies the ownership of a real estate property.

In this document, which must have a watermark to be considered legal, a series of foodstuffs are specified to certify its veracity. These are.

Issuing title registry office

Cadastral designation

Name of the owner, whether natural or legal person

Identification of the property

Square meters (unit of measurement used in Dominican Republic)

Registration

Municipality

Province

Date and time of registration

Steps to obtain the title deed of your apartment

Generally, when we are going to make a real estate investment in the Dominican Republic, what we are carrying out is a purchase of a property which is already registered with its title deed in the seller's name.

Signing of the purchase and sale contract

The first step (after the initial reservation and deposit payment) is to sign the contract for the purchase and sale of the propertywhich must be signed by both parties. In addition, the contract must be accompanied by the identity cards of both parties.

Payment of the property

At this stage, the payment of the property. This is a process that must be documented and where the buyer must obtain a receipt for the amount paid. Previously we have already told you about how much does an apartment cost in Dominican Republic.

Notarization

The process of signing the purchase-sale contract is made before a notary, who certifies that both parties have signed the contract and authenticates it legally.

Registration of the sale at the General Directorate of Registration of Titles

Next, the following has to be carried out registration of the sale at the Dirección General de Registro de Títulos de Propiedad (General Directorate for the Registration of Property Titles)which must be notarized. The Dirección General de Registro de Títulos will perform an exhaustive legal review of the contract to verify that there are no legal conflicts or encumbrances.

This institution will validate the transaction and, if everything is correct, it will issue the certificate of title in the name of the buyer.

Registration in the Real Estate Jurisdiction

Finally, once the property has been paid for, the following will be done register it in the Real Estate Jurisdiction.who issues the title deed to the property.

Costs to register a property in Dominican Republic

If you are going to invest in the purchase of a property in the Dominican Republic, you should be aware that as in any real estate investment, there are usually associated administrative costs.

You must pay the Real Estate Transfer Tax, which is equal to 3% of the appraised value of the property. This is paid only once, and within six months after the purchase. However, if the property benefits from Law 158-01 for the Promotion of Tourism Development (Confotur Law), you will be exempt.

Notary fees: the processing of the title deed involves paying the fees of the notary, who will be responsible for ensuring that the legal transfer of the property takes place legally. These usually amount to around 1% of the value of the property.

Administrative fees and appraisal expenses. These are the expenses derived from the registration of the property, and depend on the type of property and its value.

In addition to these initial costs for the purchase of the property, you should take into account the annual IPI payment (Real Estate Wealth Tax), which is equivalent to 1% of the value of the property, but from which you would be exempt for 15 years if the property benefits from the Confotur Law.

What to do if the property does not have a title deed?

In some cases, when we are going to perform the purchase of a property in Dominican RepublicIn some cases, there may be situations in which the title to the property has not yet been taken out, or the owner has the title to the property, but the demarcation has not yet taken place.

This can occur in two situations:

Persons who have been residing on a plot of land or dwelling for yearsThe property has never been titled, so it is not legalized. This is something that occurs in cases of single-family homes. If you are going to invest in this type of real estate, it is very important to certify that the seller has the property title before carrying out any operation, since it could imply legal risks.

Developers (promoters) who sell a property in a condominium or parcel, but who have not carried out the deslinde, that is, the legal and technical process by which a larger property is divided or individualized. In these cases, the developer holds title to the property during the construction phase, and once the condominium units are sold, each buyer can register their individual property.

From Vivantia Homes we are at your disposal to answer any questions you may have about the purchase process of our real estate offer. Consult with us now the characteristics and conditions for buy your apartment in Dominican Republic.