Buying Process
pRE-CONSTRUCTION BUYING PROCESS
The pre-construction buying process in the Dominican Republic typically involves several steps. Here’s a general outline of the process:
Research
Begin by researching different pre-construction projects with your Agent in the desired location, considering factors such as reputable developers, amenities, prices, and completion timelines.
Complete a tour
Once you have narrowed your search, have your agent arrange an in person or virtual presentation with the respective builder in the language of your preference. In this presentation, despite the robust amount of information typically provided, be sure to make a list of questions in case they are not al answered by the end of your presentation.
Reservation
To secure your desired unit, you'll need to make a reservation payment. This amount typically between $2000-$10,000 USD. You typically have 30 days to wire transfer the builder 20%-30% of the property value towards your purchase, minus the deposit amount.
Legal Due Diligence
Prior to your 20% payment, be sure to engage a local attorney or a trusted legal professional to conduct a thorough title search and verify all legal aspects of the builder and property.
Contract Signing
Review and sign the pre-construction contract after it being reviewed by a lawyer. The contract should outline all terms, payment schedules, and delivery dates. It is essential to understand all clauses before signing.
Payments
The payment process typically involves a series of quarterly installments, with specific milestones tied to construction progress. Be prepared to make payments on time to ensure the project's smooth development.
Construction
As construction progresses, you will receive updates and have the ability to visit the site to check the progress. In addition, builders typically have a Fly and Buy program where they will give you between $1500 - $2500USD for flight and accommodations to familiarize yourself with the area that you have purchased in, and visit your property being built. This can be used after putting down a deposit or anytime until the project is built.
Completion and Closing
Once the construction is complete, a final inspection is conducted. Upon satisfactory results, the closing process occurs, and you become the official owner of the property. You may choose to pay off the balance (which will be roughly 50% remaining left at that time) or get an international mortgage which is available in the Dominican Republic through Scotiabank, Banco Popular or BanReservas, Santa Cruz or BHD. Rates typically vary from 5-8%, and the approval process is relatively easy to get with a decent credit score above 650.
Possession
After the closing, you can take possession of your property, either for personal use or investment purposes. Trust your Agent: Remember to work with a reliable, knowledgeable real estate agent that you trust who can guide you through the process and ensure a smooth and seamless buying experience.
RESALE HOME BUYING PROCESS
In the Dominican Republic, the home buying process typically involves the following steps:
- Research: Start by researching different areas and properties that match your preferences and budget with your Agent who can assist you in finding suitable properties and negotiating deals.
- Property Selection: Tour various properties in person or virtually to find the one that meets your requirements.
- Offer and Negotiation: Once you've found a property, make an offer. Negotiate with the seller on the price and terms of the deal.
- Due Diligence: Conduct due diligence on the property with a trusted lawyer and your agent, including title search, property inspections, and other legal checks.
- Final Contract: Once the due diligence is complete, a final sales contract or "contrato de venta" is signed, and the remaining payment is made.
- Closing: The closing typically takes place at a lawyer’s office, where the final documents are signed, and ownership is officially transferred and notariezed
- Registration: Register the property with the Title Registry Office to ensure legal ownership.
- Taxes and Fees: Be prepared to pay various taxes and fees, including property transfer taxes and notary fees.
Obtaining Property Insurance
- Property insurance is a great idea to attain when choosing to buy a property in the Dominican Republic.
- Property insurance is typically available for roughly 0.8% of the property’s purchase price.
- When selecting a property insurance provider and the ideal policy for you, it is imperative to ask questions related to what is covered in the policy, and knowing exactly what you are paying for.
- Fortunately, the large insurance companies typically have bilingual agents to assist you.
- The most common coverages in the Dominican Republic include, hurricanes, cyclones, and tornadoes, damage from water due to hurricanes, cyclones, tornadoes, and wind storms, earthquakes and/or tremors, floods and sea surges, hail damage, smoke damage, accidental water damage, damage from aircrafts & vehicles, explosion, riot and strike, malicious damage.
