Guide to buying property in the Dominican Republic

1. Understanding the registry system

In the Dominican Republic, real estate ownership is evidenced by the Certificado de Título (certificate of title) issued by the Registro de Títulos (Title Registry), under Law 108-05 on Real Property Registration. Whoever appears in the registry is the owner as against everyone. That is why the first step of any purchase is to check the registry, not possession or the seller’s word.

There are also constancias anotadas (annotated records), which evidence rights over a portion of a larger parcel without an individual boundary survey. Buying under a constancia anotada is possible, but it requires more caution and often a subsequent boundary survey (deslinde) process.

2. Verifying the title and any liens

Request a certification of legal status for the property from the Registro de Títulos (Title Registry). This document indicates who the owner is and what liens or encumbrances (mortgages, attachments, oppositions) affect it. Also check:

• That the cadastral designation and the surface area match what is being offered.
• That the seller is the person named in the title and has the capacity to sell (marital status, powers of attorney, the company’s standing if a business is selling).
• That there are no outstanding Real Estate Wealth Tax (IPI) debts with the DGII.
• In condominiums, that there are no outstanding maintenance fees (Law 5038).

3. The promise of sale

The promise of sale sets the price, the payment schedule, the deadline for closing, and the conditions (for example, delivery of the property free of occupants). It is usually accompanied by a deposit. We recommend not transferring funds before having a signed promise of sale and a satisfactory title verification.

4. The final contract and the closing

The purchase and sale contract is signed before a notary. At that point, the price is paid, possession is handed over, and the documentation needed for the transfer is received.

5. Taxes

The real estate transfer tax is 3% of the property’s value as assessed by the DGII, which may differ from the agreed price. Some projects with tourism incentives (Law 158-01, CONFOTUR) or acquired through trusts under Law 189-11 may qualify for exemptions; verify each case.

6. Registration with the Registro de Títulos (Title Registry)

Once the contract is signed and the taxes paid, the file is submitted to the Registro de Títulos (Title Registry), which issues a new certificate in the buyer’s name. Until that point, the transfer is not enforceable against third parties. Always request a copy of the new certificate.

7. After buying

Register the property with the DGII for the IPI, update your details with the condominium, and, if you rent it out, become familiar with the rules of the Control de Alquileres (Rent Control Office). If you bought through a company, keep its corporate and tax obligations up to date.