Expats' Corner April 24, 2024 - 4:47 pm

5 critical due diligence checks for property buyers in the Dominican Republic

When buying property in the Dominican Republic, vetting the title is just the start of the due diligence process.

The purpose of vetting the title is to ensure that the person selling you the property is the rightful owner. In other words, their name is on the title. Only title owners have the legal right to sell their property to you.

Once you’ve verified that the person is the owner, you can proceed with the other due diligence items or checklist.

Here are five items to look at when conducting due diligence.

  1. Taxes: Are the property taxes up to date? There is an annual 1% property tax on properties valued at $150K and above. We want to make sure no property tax is owed on the property.
  2. Litigation: Is there any pending litigation tying up the property? We’d request a “Certificate of Judicial Status” from the courts to verify that there are no lawsuits or litigation.
  3. Liens: Are there any liens on the property? The property cannot be sold if any liens are pending. We’d check the Title Registry Office or Registro de Títulos to confirm that there are no liens.
  4. Improvements: Have any improvements been made to the property, including modifications, additions, or new construction? If so, we’ve got to verify if the improvements are up to code, legally permitted, and comply with local zoning and building regulations.
  5. Location: Do the coordinates on the title match the actual location of the property? Verifying the location is critical as it prevents disputes over property boundaries and ensures the property’s physical location aligns with its legal description. For this step in the due diligence process, you’d have to engage a surveyor, which can cost up to $600.

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Maria Abreu is the CEO and Managing Attorney of Abreu & Associates, a law firm practicing exclusively in Dominican Republic Immigration and Nationality law. She is also the founder of Retire and Invest DR. This organization hosts conference events for foreigners interested in living, retiring, and investing in the DR. You can contact Maria at: mabreu@abreuimmigration.com.

 

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