THE PUNTA CANA PROPERTY BUYER'S GUIDE
For the foreign property buyer, the problem in finding the right property, negotiating its purchase and closing the sale is much more difficult than in their own country due to laws (or lack of), cultural and language differences. As in most resort areas, everybody seems to be in the business, from the taxi driver to the waiter in the Hotel. Property is everyone's favorite subject of conversation. And almost everyone has an opinion, many of which can easily confuse a potential buyer. Where to start?
►Finance and Payments. How will you pay for your property?
►Finding a property. Some people spend years looking for a property. Others are lucky enough to find a property and have the confidence to purchase on their first visit to Punta Cana. Yet others need to take their time and view properties during three or four trips, until they feel really comfortable with their eventual decision.
►Type of property. Many potential buyers think they are looking for one type of property and end up choosing something totally different. Unless you are very clear about what you want and are equally sure that it exists, look at various types of properties in different residential areas with an open mind.
•Are you interested in private golf communities with beach access?
•Are you looking for beach front properties?
•Are you searching for income producing rental properties?
This will also help you build up your knowledge of market values in the area, a major advantage in negotiating and ensuring that you are getting fair market value for your money when you buy.
►Make an offer. Make your offer in writing if possible (of course, subject to contract), and include not only the price, but also the deposit amount, when you are prepared to pay it, when you are prepared to complete, what you understand to be included in the price (for example furniture an appliances if applicable), and an often neglected point, that all machinery equipment and installations should be in good working order. Show the owner your deposit, he will certainly take your offer more seriously if you have a healthy deposit ready for immediate action.
►Closing. When an offer is accepted, hire a reputable lawyer to check the title registry and perform due diligence (the last word on property ownership, where any liens and encumbrances will show up). A lawyer will prepare a private contract that will bind both parties to the deal, and eventually transfer the title deeds for signature, when the balance of the purchase price is paid, thereby completing the sale. There are excellent lawyers in Punta Cana, most speaking fluent English and other languages. The best way to find one is by personal recommendation, or by asking your agent.
►Closing Costs. The total official costs involved in purchasing a constructed 4% of the total purchase value. Lawyer fees are one 1% of the total cost, and the Transfer Tax (to transfer totle to your name) is about 3%. Before purchasing a property, you should employ some additional services such as Appraisals and Home Inspections.
Contact us for a copy of our Punta Cana Lifestyle Real Estate Buyer's Guide, a complete guide to purchasing, check lists and other related services.
Finding and buying a property in the Dominican Republic can be as simple, or as complicated a procedure as one wants to make of it. Use common sense and listen to your intuition! It is often one's best guide!
WHAT SHOULD YOU LOOK FOR IN A SAFE INVESTMENT IN PUNTA CANA?
A property bought today is an important part of one's assets. It is therefore advisable to take into account not just personal preferences but also general investment criteria, such as location, design factors, quality of finishes and facilities. Other important factors include;
►Titles. You should purchase properties with titles to protect your investment.
►Security. On-site security is important, and you should look for gated communities, or free standing units with good visible, 24 hour security.
►On-Site Management. Lack of effective on-site maintenance and Condominium is a mayor factor for loss of tenants and other owner/resident disputes. Many of the area's properties have no titles, therefore no Home Owner's Association. Purchasing property without titles can leave a costly mess behind for you to deal with.
LIST OF REPUTABLE LAW FIRMS
To purchase a property, the first thing to do is hire a real estate lawyer. There is much history of fraud by real estate agents in the country, and little protection is offered to you as a buyer. Be vigilant. If you are considering buying a property in the Dominican Republic, you need to secure the services of a real estate attorney- someone who could help you with the legal issues concerning your purchase. It is tempting to save money, but this could cost you a lot of money in the long run. Make sure that you have an experienced and trustworthy lawyer to help you out. READ MORE HERE...
ARTICLES BY LOCAL LEGAL EXPERTS
To enhance your buying and selling experience, it’s our job as real estate professionals to provide you with as much valuable information as possible. It is essential that the buyer or seller be aware of all aspects of the real estate market before making a major decision. Whether it be through newsletters, checklists or news articles, we are here to make this process stress-free and rewarding.
► Buying Real Estate in the Dominican Republic
Introduction- Real estate transactions in the Dominican Republic are governed by Property Registry Law No. 108-05 and its Regulations, in force since April 4, 2007. Ownership of property is documented by "Certificates of Title" issued by Title Registry Offices. READ MORE HERE...
►Living in the Dominican Republic, Benefits and Exemptions
The Dominican Republic with its numerous resources, is well positioned as an ideal place for foreigners wishing to purchase property, work, invest, and retirement destination. Whether you are looking to invest or just relocate, the Dominican Republic offers different types of residency options to meet your needs. READ MORE HERE...
►Buyer's Guide: Tax Exemption for Investors and Pensioners in the Dominican Republic
The Dominican Republic is primarily a service economy and, like other countries in the world has a system of tax collection, which is covered under Law 11-92 of the Dominican Tax Code. Dominican tax system covers source income of individuals or entities, whether Dominican or foreign, who are based in the country. READ MORE HERE...
►Buyer's Guide: Tax Information for the Dominican Republic
Dominican income tax law is primarily territorial. All income derived from work or business activities in the Dominican Republic is taxable, no matter if the person is a Dominican, a resident foreigner or a nonresident foreigner (Articles 269 and 270). READ MORE HERE...