How to complete a real estate transaction in the Dominican Republic.
This guide explains the standard purchase path for villas, apartments, land, and commercial property. Every transaction should be reviewed by a qualified Dominican attorney before funds are released or final documents are signed.
01
Selecting the right property
Before making a purchase, define the type of property, target location, personal use, rental potential, construction quality, and realistic budget.
- Identify whether you need an apartment, villa, land parcel, or commercial asset.
- Compare the location for lifestyle, liquidity, airport access, and investment potential.
- Visit properties in person or complete a structured virtual showing before committing.
02
Promise of Sale
After buyer and seller agree on commercial terms, the buyer's attorney prepares the legally binding Promise of Sale, known as the Contrato de Promesa de Venta.
- Purchase price, payment schedule, contingencies, and closing date are documented.
- The agreement is signed before a notary once both parties approve the draft.
- The buyer commonly deposits 10-20% of the purchase price into notary escrow.
03
Legal due diligence
After the Promise of Sale is signed, the attorney performs a detailed legal review to protect the buyer and confirm that the property can be transferred with clean title.
- Verify the Certificate of Title and confirm legal ownership.
- Check for mortgages, liens, encumbrances, disputes, tax liabilities, and utility debts.
- Validate the cadastral survey, known as Deslinde, and review permits or zoning where relevant.
04
Final legal clearance
Before closing, the buyer's attorney confirms that no new claims or issues have appeared and that every escrow, tax, and documentation condition is ready for final transfer.
- Update title verification before final signing.
- Confirm escrow terms, payment timing, taxes, utilities, and administrative compliance.
- Prepare all documents required for the Final Purchase Agreement.
05
Fees and taxes
The buyer should plan the closing budget before signing. Costs vary by property, structure, and legal scope.
- Transfer Tax: commonly 3% of the assessed property value.
- Legal fees: often estimated around 1% depending on the attorney and transaction scope.
- Notary and registration costs: required for official documents and title transfer.
06
Final Sale Contract and transfer
Once conditions are satisfied, the Final Purchase Agreement, or Contrato de Compraventa, is signed before a notary.
- The buyer pays the remaining balance according to the agreed closing terms.
- Ownership is formally transferred.
- The seller receives payment and the buyer receives the documentation needed for registration.
07
New title and registration
The attorney registers the transaction with the Dominican Land Registry, known as Jurisdiccion Inmobiliaria, so the buyer receives the new Certificate of Title.
- Register the property under the new owner's name.
- Transfer utility services and property tax obligations where required.
- Keep all final closing documents for future resale, financing, or estate planning.
08
Ownership options
Buyers can acquire Dominican Republic real estate in an individual name or through a legal entity, depending on tax planning, liability, family structure, and future resale strategy.
- Individual ownership: direct personal ownership.
- Company ownership: may be useful for selected investment or holding structures.
- Foreign buyers do not need residency to own property, but they need proper legal guidance.
Verbal agreement and transition to legal documentation.
Unlike in the United States or Canada, Dominican Republic real estate transactions often do not begin with a written offer. Buyer and seller usually agree verbally on the purchase price, payment terms, and closing timeline. Only after that does the attorney prepare the formal legal documentation.
10
Practical purchase sequence
- The buyer selects and instructs a licensed Dominican attorney.
- The buyer pays the attorney to begin due diligence.
- Buyer and seller agree final commercial terms.
- The Promise of Sale is drafted by the buyer's attorney.
- Both parties sign before a notary.
- The buyer deposits 10-20% into escrow.
- The attorney finalizes title, tax, and document clearance.
- The buyer transfers the remaining balance under the agreed terms.
- The Final Purchase Agreement is signed before a notary.
- The attorney registers the transfer and the buyer receives the new title.
Final considerations before you commit.
Foreign buyers do not need Dominican residency to own property. The safest process is to work with experienced real estate advisors, qualified attorneys, and trusted notaries, while confirming the three main stages: commercial agreement, preliminary contract, and final sale contract.
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