Benefits of investment in the Dominican Republic. Dominican Republic Real Estate is regulated by the set of rules of the Civil Code and Law No. 108-05 on real estate registration. This law is based on the famous Australian Torrance System and requires all landlords to pass through special legal procedures in order to obtain legal status, the actual ownership and assigning the Title Certificate. In addition, there are specific features that make the Dominican system unique in its kind. The proposed article will give you a series of details associated with investing in real estate and will give valuable advice on these matters.
System that you can trust. In the Dominican Republic agreed to use the “book” of Torrance, where every plot of land has a separate “page”, which can help to draw conclusions on the registration of ownership, whether it is a mortgage, whether there are any legal restrictions. Once the property is registered, all future transactions with respect to its need to go through the official registration of titles, to record the “history” of the property. This system is fundamentally different from the system of the United States where the registration system does not exist as such. For the foreigners wishing to buy property in the Dominican Republic, is not recommended to conduct their own research on the property in the “book” of Torrance – the correct conclusion about the status of the property can be made only by the experienced attorney.
Foreigners and property – Foreign Investment Law 16-95, establish that all the foreigners have the right to make direct investments in real estate and in the future to dispose of it in the legal framework. If a foreign company or a person wishes to register its investment deposit in the Central Bank of the Dominican Republic and received the registration certificate of foreign direct contribution directly from the bank, you must provide a written statement containing the following information: confirmation of the transfer of documents, foreign investors may also transfer the entire capital invested in the country, in freely convertible currency, including profit, documented in the company.
Sales contracts – Although there is no single format of the contract of sale, they must be written, include the intention of the parties for the sale of a detailed description of the property, the subject of the contract, the purchase price and method of payment, as well as certified signatures. According to the law, all contracts must be written in Spanish. In addition, in the event of allegation, all documents related to the transaction of sale, must be translated into Spanish in order to provide it to the court as evidence. The format of the contract depends on the specific needs of the parties. Taking into account the complexity of the implementation of real estate transactions, both parties should consult with their lawyer before signing the document, because after signing to change anything will be difficult, if not possible. Also, if the buyer is not a resident, it is necessary to think about choice of the form of ownership, the most satisfying for his aims and interests. The following should be taken into the account : cases relating to the protection of company assets, aspects of state taxes, aspects of taxes on profits from the sale, privacy. The buyer can save a lot on taxes on the transfer of property rights and the process of obtaining the Title Certificate, if a real estate agent and lawyer work together on drafting the contract.
Parties of the contract – Although, it is quite clear who is an interested party in the contract for the real estate, legal techniques can change the role of the parties involved, such as: if the owner or seller is not an adult and therefore, would not have the right to sing the contract. It may be necessary, the permission for the contract from another person, if the seller is married. If necessary, other legal process to complete the transaction – it takes more time and funds, which may slow down the operation. Duty of a real estate agent is to detect possible situations at an early stage of the negotiations, which will allow properly advise the client, with the help of a lawyer, of course.