In the Dominican Republic property ownership information is maintained regionally in the recorder’s office, title registrar’s office or land court. This information is publicly available at regional recorder’s offices, title registrar, or land court. It must be searched by hand. The Dominican Republic does not yet maintain computerized records of registered title.
Generally speaking there are no public or private services that maintain information on transactions.
Asociación de Empresas Inmobiliarias (AEI)
Ave. Lope de Vega #33
Plaza Intercaribe, Suite 407
Santo Domingo
Dominican Republic
Phone : +1 809 565 1688
Fax : +1 809 566 5659
e-mail : aei@tricom.net
The Real Estate Association of the Dominican Republic (AEI) is the most important association of its kind in the country, representing over 80 estate agencies and other real estate-related companies. Founded in 1989, the AEI’s mission is to represent the interests of real estate professionals, and it also seeks to promote professional education by organising courses, seminars and conferences. In association with Intec University, an academic member of Fiabci, AEI also helped to create a real estate diploma.
While the concept of private property is especially important in the U.S., nevertheless the government maintains certain rights in all privately held property. There are no property taxes in the Dominican Republic, only a one-time transfer fee which is roughly equal to 3% of the purchase price.
The following forms of ownership exist in the Dominican Republic: Joint Tenancy, Tenants in Common , General Partnerships, and Limited Partnerships.
Title & Contracts in The Dominican Republic:
Conveyance of real property in order to be recorded at Land Registry may be done in public instrument or private document which must contain a true statement of consideration since tax on transfers is based on real consideration. In public instrument, both grantor and grantee must sign and be present before a notary at the same time in person or by attorney-in-fact. Notary retains the original document and delivers a certified copy to the interested parties which for all intents and purposes is the same as an original in courts of law. Private documents are very simple forms and must be presented to and acknowledged before a notary or judge and then recorded at the Land Registry. Transfer tax and recording fees are very reasonable.
The Torrens System of land registry is in effect in the Dominican Republic. Titles are registered at the national Land Registry, which in turn issues a warranted deed to the land owner.
Contracts for the sale of real property or for an interest in real property must be in writing. Oral leases for a term of less than one year are also enforceable as a ‘verbal contract.’ There are four additional essential elements of a contract in the Dominican Republic. They are as follows:
1) All parties to the contract must be legally competent.
2) There must be mutual agreement or "a meeting of the minds." A mutual willingness to enter into a contract.
3) The contract must be for a lawful purpose, i.e., not contrary to law.
4) The contract must be supported by consideration, i.e., something of value, money, a promise, property or services.
Real property contracts are typically drawn by an attorney. However, form contracts can be used and notarized by an attorney (in order to be a notary in the Dominican Republic you must first be an attorney). All contracts must either be in Spanish or translated into Spanish by a judicial translator.
Property Taxes:
Property taxes do not exist in the Dominican Republic. Municipalities depend on other government funds to support fire and police departments and maintain the infrastructure.
The closing procedure is conducted by attorneys who handle documentation, transfer of funds, payments, etc. Because the majority of buyers and sellers are residents of other nations, a contract (promise of sale or conditional sale) is executed and closed within a specified time: 30, 60, or 90 days. Ongoing expenses are incurred by the seller until the sales contract has been satisfied and he turns over possession of the property. Typically prorated to the date of closing, these might include hazard insurance, interest on loans being assumed, rents, utility charges, property taxes and homeowners association dues.
Land Use & Control:
There are controls on how a parcel of real estate may be used. These controls include zoning, building codes and subdivision regulations. However, there is no uniform building code. The application of public land use controls, especially zoning, can be challenged by landowners as a "taking" of private property rights. Covenants and deed restrictions exist in the Dominican Republic.
There are three types of Mortgages: 1) By act of law, such as those of minor children on the property of their parents or guardians, 2) Judicial, resulting from court judgments, and 3) Conventional, established by an agreement of parties. Mortgages can only be imposed on real property and its accessories and usufruct.
Conventional mortgages must be constituted before two notaries, or one notary and two witnesses. They cannot be constituted by instruments executed outside the Dominican Republic unless provided by treaty or special law. The property must be described and the amount of the mortgage must be specified. Mortgages establish preference over other creditors by their date of record. The only exception to this are certain mortgages by act of law, but in these cases the mortgage debtor is obliged to immediately record the mortgage and is subject to criminal liability if he fails to announce the existence of the mortgage before placing any other lien on the subject property. Courts have discretionary powers to grant the debtor additional time for repayment of the debt.
Under the Land Registry Law, mortgages are effective indefinitely, other mortgage records are effective for ten years and may be renewed. Foreclosure sales can take place only after attachment is recorded in the public registry, extensive notice is given to the owner of the property and other interested parties, and proper notification is published in the newspaper. The property is sold to the highest bidder. If there are no bidders the property is awarded to the creditor for a previously designated amount. Within eight days, others bidders may make a new bid for purchase of the property provided that the bid is 20% over the price at which the property was awarded. In such cases, a new sale is held. Once the sale of the subject property is final, the debtor has no legal recourse.
Long term loans for residential, commercial and agricultural purposes are available. Short term loans for personal reasons are available as well, but at high interest rates. In the Dominican Republic loans are not only guaranteed by title to the property but also by a life insurance policy taken out on the property owner. The government does guarantee loans in any way.
Lenders do look for a minimum loans to value ratio and a minimum debt coverage ratio for income producing properties, however loans seldom exceed 60% of the value of the real property. Lenders finance loans directly using their own underwriting criteria.
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