Buyer’s guide

The steps of a purchase

1. Set your budget and decide how you will pay. If you need a loan, ask the bank for pre-approval before you start looking, so you know how far you can go.
2. Search and compare. We start with a virtual appointment to understand what you need, and I show you options. In-person visits are arranged afterwards.
3. Make a written offer. If the seller accepts it, you sign a promise-of-sale agreement and pay a deposit, often around 10% of the price.
4. Legal review. Before paying the balance we confirm that the seller is the owner, that the property has no mortgages, liens or debts, and that the title and survey are in order.
5. Sign the deed of sale before a notary and pay the balance, directly or with the bank loan.
6. Pay the transfer tax at the DGII (the tax office) and register the title in your name at the Title Registry.
7. Receive the keys and transfer the utilities to your name.

The documents you will be asked for

• Your Dominican identity document, or a valid passport if you are a foreigner.
• If you are buying with a loan: employment letters, bank statements and proof of income for recent months.
• Proof of the source of funds. Banks and notaries must request it under the anti-money-laundering law (Law 155-17).
• If you are married, your spouse's details, since they may need to sign.
• If you are buying through a company: its incorporation documents, tax ID (RNC) and the authorization of the signatory.

What it costs beyond the price

Plan for an extra 4% to 6% on top of the price, depending on how you pay. These are the most common costs:

Some tourism projects approved under CONFOTUR (Law 158-01) are exempt from the transfer tax. If you are interested in one, I will confirm whether it applies before you make your offer.

If you are financing

Dominican banks usually finance up to 70% or 80% of the property value, with terms of up to 20 or 30 years. You contribute the rest as a down payment, plus closing costs.

Rates and terms vary from bank to bank and with your income, so it pays to compare at least two offers. The mortgage calculator gives you an estimate of your monthly payment.

If you are buying pre-construction

Buying before a project is finished lets you pay in instalments and often at a better price. In exchange, there is more to check:

• The payment plan: a reservation, a down payment in instalments during construction and the balance on delivery, often paid with a loan.
• That the project has its building permits and that the developer has delivered other projects.
• Whether the project uses a trust (Law 189-11). In that case your money is managed by a trust company and used only for the construction.
• The delivery date and what happens if it is delayed. It must be written in the contract.
• What the unit includes (finishes, appliances, parking spaces) and what costs extra.

If you are buying from abroad

Foreigners can buy property in the Dominican Republic with the same rights as Dominicans (Law 16-95). Your passport is enough; you do not need residency.

You can do almost everything remotely: the search and meetings by video call, and the signing through a power of attorney, legalized or apostilled in your country.

• Send the money by bank transfer from an account in your name. It makes it easier to show where the funds come from.
• Some Dominican banks lend to foreigners, usually with a larger down payment.
• If you rent the property out, that income is taxed in the country.
• There is a residency-by-investment option. If you are interested, I will explain the current requirements.

After you buy

• The property tax (IPI) is 1% a year on the value above the exempt amount the DGII sets each year. Many homes fall below it.
• In a condominium, the maintenance fee is paid monthly to the building administration.
• Keep the title certificate somewhere safe and check that its details are correct.

How I help you

• I search with you for properties that fit what you need and your budget.
• As a lawyer by training, I review the property documents with you before the offer.
• I guide you through the negotiation, the promise of sale and the closing, and coordinate with the notary and the bank.
• If you live abroad, I organize everything so you can buy remotely.