The Dominican Republic is highly demanded for purchases of houses, apartments, villas and real estate in general from Spain, this incidence is due to:
- The number of Dominicans who have immigrated to Spain and for whom it is always safe to buy goods in their native country.
- The number of Spaniards who know the Dominican Republic and like all the attractions and benefits that this country has, which is why they decide to invest in buying a property here.
- The existence of extensive and favorable business relations between the Dominican Republic and Spain.
And we start in this article, not to establish the benefits themselves, but so that they have the necessary precautions when buying a property by delivering money from Spain. Unfortunately, there have been many scams in this type of business; we understand that many are the uncertainties and suspicions that assist you when the local real estate market is unknown.
Possible situations when buying a house or property in the Dominican Republic from Spain
Some of the situations that have occurred and that may occur would be:
- Sell a project that does not exist, only in plans or virtually.
- Unscrupulous people who usurp the corporate identity of a “Formal” company to receive payments and then that person is not identified or located, and the buyer is left in legal limbo.
- An overvalued property (The place where it is or will be located does not guarantee the price indicated).
- The delivered property is not what was expected or what was paid for (delivering a property with quality standards below what was promised).
Prior to the purchase of the house in the Dominican Republic
In order to avoid these and other types of situations that are detrimental to you, who are abroad and do not know the credibility of a certain company or construction company, we give you the following recommendations before signing any promise of sale and about all delivery of some advance or payment.
Investigate the construction company, the company and what is the truth of that company:
- Commercial Registry.
- National Taxpayer Registry (RNC).
- Other projects to be carried out
- Physical address.
- Reference from other buyers.
- Commercial references (if they are builders, they must constantly buy from certain suppliers).
- Bank references.
In order for a housing project to be built in the Dominican Republic Real Estate, it must have several permits and/or authorizations, of which you must request a copy, these are:
- Public Works Ministry.
- Ministry of Environment
- Corresponding Town Hall.
- Among others.
Mother title of the general property, this will indicate and you can request:
- In whose name is this property?
- Legal status of the property (Certification of No Encumbrance) issued by the Title Registry.
- IPI Certification (Real Estate Property Tax).
This in case of purchase in plan or project, if it is a sale of a property already with construction time, it is essential that they give you a copy of the title and with it investigate:
- Legal status of the property (Certification of No Encumbrance) issued by the Title Registry.
- IPI Certification (Real Estate Property Tax).
- Physical investigation of the property (hidden construction defects, such as leaks and others, often fit the property for sale and after two (2) months the construction defects begin to appear).
- Statutes and condominium regulations; in case it is a condominium.
- Up-to-date letter of maintenance fees.
If you transfer a property that has any of the debts mentioned above, said debts will be transferred to you , as the new owner of the same, and therefore it is important to know the real condition of said property.
To avoid any surprise or unpleasant situation, we recommend that you consider hiring a law firm that performs all the validations and investigations of the project or property, with this you will be sure that the transaction you wish to make is based on real and legal guidelines. And in case of non-compliance, have the corresponding ways to defend yourself or be compensated.