Purchasing property in the Dominican Republic is surprisingly easy and with Coldwell Banker we will make your purchase experience even easier.
Below are the simple purchasing procedure points:
Once we have helped you find the property of your dreams, a preliminary Sale /Purchase Agreement with the owner of the property should be signed, which contains the basic terms and conditions applicable for the sale/purchase of the property. This should be accompanied by a 10% deposit which will be held in a lawyers account and released at the time of closing. The Seller is committed to sell the property to you after signing this agreement.
Next step: The Lawyer/Notary will typically require the following documentation to process the sale/purchase agreements:
- Full name and particulars of the parties. If the seller is married, the spouse must also sign. Two copies of identification are required of each person, (Passport, Dominican I.D. card, driver's license).
- Legal description of the property to be purchased.
- Purchase price and payment terms.
- Default clause.
- Date of delivery of the property.
- Due diligence required or done.
- Obligation by seller of signing the Deed of Sale upon receipt of final payment.
Notary process may take maximum 6 -8 weeks, the charges vary depending on complexity of the transaction. You will be contacted by the notary or your Coldwell Banker broker for an appointment to sign the deed and make final payments prior to the appointment date.
It is recommended that your financing is in place by the time that the official Deeds of Sale/Purchase and Transfer of Property are signed at the notary office.
Closing CostsWhen buying a home, the following cost will be incurred by the Buyer.
The closing costs are calculated as follows:
- Transfer tax and stamp duty. Taxes are paid based on the market value of the property as determined by the tax authorities, not on the price of purchase stated in the deed of sale.
- Title transfer
- Notary fees
Property TaxesProperties held in the name of an individual are subject to an annual property tax ("IPI") of 1% of government-appraised value in excess of RD$6,500,000 pesos except for empty lots or farms outside city limits and properties whose owner is 65 years old or older, who has registered it in his or her name for more than 15 years and has no other property.
If the property is held by a corporation, no property tax is due. Instead, the corporation must pay a 1% tax on corporate assets.
However, any income tax paid by the corporation will constitute a credit toward the tax on assets, so that if corporate income taxes paid are equal to or higher than the taxes on assets due, the corporation will have no obligation to pay taxes on its assets.
If you have any further questions regarding buying a home, than please do not hesitate to call the Coldwell Banker office for free advice, we are here to serve you!