The process of buying real estate in the Dominican Republic involves several steps to ensure a smooth and successful transaction. Here is a more detailed breakdown of the process:
Step 1: PROPERTY SELECTION: The first step is to explore the area and view available properties, whether it be a new or resale condo or villa. You might meet with other owners and get a sense of the community before making a decision. Consider factors such as location, size, features, and amenities when choosing a property.
Step 2: PURCHASE OFFER: Once you've chosen a property, a detailed purchase offer will be prepared by a realtor and presented to the vendor or developer for signature. This offer should include the proposed purchase price, any contingencies or conditions of the sale, and a timeline for completing the transaction.
Step 3: ACCEPTED OFFER: Once the vendor agrees to the terms and conditions of the offer, you'll meet with a property lawyer to receive in-depth instructions and information. This is a good time to ask any questions or address any concerns you may have about the process or the property itself.
Step 4: DEPOSIT AND DUE DILIGENCE: The next step is to wire a deposit to your lawyer's or realtor's escrow account. This money will be held until the next contract is signed and the lawyer has completed due diligence on the property, including ensuring there are no liens or outstanding fees. This step is crucial to protect your investment and ensure a clean and clear title transfer.
Step 5: PROMISE OF SALE: This document, similar to the Offer to Purchase, is prepared by the property lawyer in Spanish and outlines the conditions of the sale. An English translation will also be provided. This contract should include the final purchase price, any contingencies or conditions, and a timeline for completing the transaction.
Step 6: PAYMENT: After the contract has been signed, the balance of the funds for the property will be sent, unless it is a progress draw construction, in which case payments will be made at scheduled intervals during the building process. This step is typically completed with the assistance of a financial institution or mortgage lender.
Step 7: DEED OF SALE: The final step is the transfer of ownership, either through the establishment of a new company with the buyers as shareholders or the transfer of share ownership in a resale. This step involves the signing of a deed of sale, also known as a Contrato de Venta, which conveys the property from the seller to the buyer.
Step 8: TAKING POSSESSION OF YOUR NEW PROPERTY: Upon completion of the transaction, the buyer will receive ownership of the property and the land titles office will be notified of the change in ownership. In the case of a company, a new company will be established with the buyers as shareholders, or in the case of a resale, the share ownership will be transferred to the buyers. Congratulations on your new home in Punta Cana!