Dominican Republic Real Estate Legal Guide

Client obligations (seller or landlord)

• Accurate disclosure: provide truthful information on ownership, liens, taxes, HOA dues, permits, and property condition.
• Documentation: deliver the Certificate of Title, survey (if applicable), condo bylaws, and all permits or licenses related to the property.
• Access: allow showings and inspections within agreed windows and in a safe, documented way.
• Pricing and terms: confirm price, deposit terms, inclusion list, and timeline in writing.
• Commission and costs: pay the agreed brokerage fee and any disclosed marketing or legal costs.
• Changes: promptly inform the agent about any change affecting the listing (price, ownership, encumbrances, or availability).
• Direct closing notice: if a buyer introduced by the agent closes directly, the commission remains due under the agreement.

Exclusive representation

An exclusive listing authorizes Ocean MG to represent the property for a defined period. During exclusivity, the seller agrees not to list with other brokers. If a buyer introduced during the exclusivity period completes the transaction, the agreed commission remains due.

Exclusivity can improve pricing and time on market by aligning marketing and negotiation strategy, but it should always be explained in writing and accepted by the client.

Commission and payment milestones

• When due: commission is typically payable at signing of the promissory contract or at closing, as defined in the listing agreement.
• Written schedule: all fees and service charges must be clearly stated in the agreement.
• Additional costs: any marketing or legal expenses should be approved in advance.
• Related parties: if a related party of the buyer or seller completes a transaction introduced by the agent, commission remains due.
• Post-termination: if a transaction closes soon after termination with a party introduced by the agent, the agreed commission may still apply.

Agent duties and limits of responsibility

• Duty of care: act professionally, disclose material facts, and represent client interests within the law.
• Confidentiality: protect client data and negotiation strategy.
• Limits: agents do not replace attorneys, surveyors, or engineers and are not responsible for hidden defects not disclosed by the seller.

Due diligence checklist (Dominican Republic)

• Certificate of Title and property status at the Registry of Titles
• Confirm no liens, mortgages, or judicial encumbrances
• Survey and boundaries (deslinde) where applicable
• Condominium bylaws, HOA rules, and fees
• Building permits and final occupancy documentation
• Utilities, infrastructure, and access rights
• Property condition inspection and repair history

Ownership rights and restrictions

• Foreign ownership: the Dominican Republic generally allows foreign buyers to own property with the same rights as locals.
• Title regime: confirm that the property is properly titled and registered to the seller at the Registry of Titles.
• Deslinde: a surveyed and registered boundary is critical for secure ownership, especially for land.
• Coastal and protected zones: verify any coastal, environmental, or tourism restrictions that may affect use or construction.

New construction and off-plan purchases

• Developer due diligence: verify the developer track record, corporate status, and permits.
• Escrow structure: deposits should follow a documented schedule with clear release conditions.
• Delivery and specs: define construction standards, handover conditions, and penalties for delays.
• Warranty terms: confirm post-handover defect coverage and retention procedures.

Taxes and typical closing costs

• Transfer tax: generally 3% of the property value, usually paid by the buyer unless agreed otherwise.
• Notary and registration fees: vary by transaction size and registry fees.
• Legal fees: set by your attorney and scope of work.
• Annual property tax: may apply above a government threshold; check current DGII guidance.
• Rental income tax: may apply if the property is leased.
• Capital gains: sellers may be subject to capital gains tax depending on the transaction and residency status.

Key documents and closing packet

• Promissory contract: sets price, deadlines, and conditions before the final deed.
• Final deed: signed at closing before a notary or authorized attorney.
• Proof of payments: receipts for deposits, taxes, and fees.
• Title registration: submission to the Registry of Titles for ownership transfer.

Deposits, escrow, and payment safety

• Deposit protection: deposits should be held in a secure escrow or attorney trust account when available.
• Written conditions: all refunds and penalties must be defined in the contract.
• Wire accuracy: confirm beneficiary details in person or via verified channels to avoid fraud.

Powers of attorney and remote closings

• Power of attorney: common for US buyers; must be properly legalized and translated where required.
• Remote signing: confirm whether the notary and registry accept remote execution for your case.

US buyer considerations

• Source of funds: be prepared for AML and KYC checks, including bank letters and proof of funds.
• Currency and transfers: international wire transfers should match the contract and closing timeline.
• Entity purchases: if buying through an LLC, provide corporate documents and authorization.
• Insurance: review hazard and liability coverage, especially for rentals.
• US reporting: consult a US tax advisor about any required reporting for foreign assets or rental income.

Short-term rentals and tourism rules

• HOA rules: confirm whether short-term rentals are allowed in the condominium.
• Local permits: some municipalities or tourism zones may require additional licenses.
• Taxes: rental income and local fees may apply depending on the setup.

Dispute resolution and governing law

Transactions are governed by Dominican Republic law. Your contract should state the forum for disputes (courts or arbitration) and the governing law. Ocean MG can coordinate a local attorney to ensure the contract is enforceable.