buying a house in DR

I live in the US and I am actively working on purchasing a villa in the DR. I’m not an expert, but based on my research I can say that the real estate buying process in DR is similar to what you’re used to in North America. 

I would suggest you retain a good lawyer and a good realtor. This forum can be a good resource. Good luck!

Welcome to the forums. Protected from what specifically?

@Dou08

HELLO I'm in the process now I have hired an attorney suggested by my realtor. So far so good

@Dou08

I'm Canadian too...I would suggest retaining both a Real Estate firm and legal representation that are fluent in both English & Spanish, but their first language being ENGLISH.

I think this forum prohibits specific naming of companies, so I can't go there.

While the process is similar, it IS Republica Dominicana....A buddy of mine purchased a house in SD, IN CASH...Doubt that could be done in Canada (or the U.S., U.K., etc).

I think if you ask the planner, she'll help you out...Seems to be knowledgeable and helpful

Have you explored building here? A lot of people will discourage but if you manage it correctly you will save a lot. large majority of houses here are built with a master of construction ( no architect ) they have structural problems; most Dominicans will put in cheap tiles, paint, and electrical system not the mention the horrible quality to begin with. if the house was built with an architect and by a crew they are pretty expensive in good areas. Most real-estate agent's contracts foot the bill to you not the dueño which is normally 10k on something that is about 200kUSD put lack of regulations and anyone can be a real estate agent here or insert title "here" and you have mouse traps everywhere you step here.

If you're on a budget or want to save a lot building is the way to go - problems arise when you dont speak Spanish and you dont have connections, don't pay someone to supervise, let them control the materials.

Source : Dominican family in the construction industry here.

This is not a request for realtors to post their contact info!  That is against the policy here!  You do not get to promote yourself publicly.  You are welcome to post in our directory!

@FatCarib

Good evening,

My name is Ana Ael.***

Best Regards

Ana

***

Again realtors stop posting your contact info, it's against the rules

If you do NOT make a huge purchase (like a home) then you are protected.  Sounds sarcastic.  Your asset is not at the mercy of a foreign government and rules that are not often enforced.  While many of us do buy or even build homes, as long as you live in your home and enjoy it, then thats fine.  If you want to rent it out for 10+ years before you intend to occupy it yourself, I dont think it is a good idea. Dont treat it like a liquid investment or one that appreciates in great value years from now.  Also remember, salt , heat, humidity causes alot of damage that you might not anticipate and this causes issues that you hear many owners talking about.  Like trying to find qualified skilled people to help you fix issues.  Just food for thought. 

@Dou08

      just remember there’s no escrow acct here and hold your check in your pocket till closing time

   don’t let “anyone “else tell you different …..

@ewenmcc

Love your ”IN CASH”  statement 😄.  I must say that it is perfectly legal in the US to purchase a home with cash. Of course,  dealing with IRS reporting requirements for such large cash transactions could make it not very realistic.  Beside, I would not feel comfortable carrying a briefcase containing such a large amount of money anywhere and at any time🧐

On another note, I am still working on my ”Exit Strategy”. I have been in contact with a realtor on the North Coast and I’m considering purchasing either a resale or a pre-construction in one of the most sought after communities there. I also have the names of a couple of real estate attorneys that were shared with me PRIVATELY by some regular participants on this forum (thanks guys).  Surely, I will do my due diligence prior to retaining an attorney if and when a deal is in progress😎.

@FatCarib

     don’t carry cash you’ll get into trouble at customs for anything over $9,999

once you find a place you want bring a bank check with the other party’s name on it , if the transaction doesn’t go through then you can bring back the check to the bank where you withdrew it from…. my  attorney  even persuaded not to put down a deposit incase they back out of the deal …. try getting that$$$ back

Once the deal is done its easy to do a wire transfer as well.

Wire transfer & bank check would be the only options as far as I am concerned. However,  wouldn’t the wire transfer be completed (using some type of escrow account) at least a day before closing?

    @ewenmcc
Love your ”IN CASH”  statement 😄.  I must say that it is perfectly legal in the US to purchase a home with cash. Of course,  dealing with IRS reporting requirements for such large cash transactions could make it not very realistic.  Beside, I would not feel comfortable carrying a briefcase containing such a large amount of money anywhere and at any time🧐
On another note, I am still working on my ”Exit Strategy”. I have been in contact with a realtor on the North Coast and I’m considering purchasing either a resale or a pre-construction in one of the most sought after communities there. I also have the names of a couple of real estate attorneys that were shared with me PRIVATELY by some regular participants on this forum (thanks guys).  Surely, I will do my due diligence prior to retaining an attorney if and when a deal is in progress😎.
   

    -@FatCarib

One of the most popular "communities" with many projects on the North Coast of the DR is over a year late in delivery of houses that were purchased pre-construction.  I know someone waitng for 16 months past the promised delivery date.

Advice is NEVER by pre-construction in the DR>

Thats if they ever get completed , all that land clearing before the build has-to be reimbursed before the next phase and that $$ money comes from units that are pre sold ,,

meaning ”you ” , theres a lot of unfinished projects on the north coast and the money is in the wind💨 and the goverment can’t do anything because the jobs aren’t bonded

I'm sure it can vary; but how much do attorneys typically charge per hour in the DR? Do you think the price goes up if you're an American?

@Tippj & @windeguy.  Interesting. Thanks for your words of wisdom.

I just purchased a home in LA Mulata II.  Not in a gated community.  Used a realty company in Cabarete and had a wonderful experience.  Would share if allowed.  They referred me to an Attorney, another great experience.  I interviewed another attorney in Sosúa and was not impressed, so went with the referred attorney.  Money transferred by wire.  Do not fear US Federal government, no restriction on transferring/carrying money across borders, they just want to know.  If you carry, you must report.  If you wire transfer, bank will report.  If money is legal, no problem.  Also, a big name in Sosúa Real Estate will assist in wire transfers to his account in US.  THERE IS A FEE.  But a BIG name and therefore therefore greater level of trust.  In my case, the seller paid the transfer fee in the end.  No hitches.  I would also recommend that if you are serious, open a bank account in DR now.  I used Scotia Bank.  There is an "application" process.  This will take a few days, so set aside the time.  But once you have an account, you can send money to yourself and transfer money within DR through your account.  Also remember that bank apps will limit wire transfers.  Go to the branch and you can transfer much more at same fee.  Also Scotia Bank is excellent for paying electric bill, water bill, cell phone.  Others might be too, I only have Scotia accounts.  This process is really not that difficult.  The Deslinde (Survey) is important in home purchase, ask about it.  Things can be difficult, but manageable.  We closed on July 2 and our title was ready about a week later.  Electric was a bit more complicated, but in part because of previous owner and electric shenanigans (multiple accounts and meters to get cheaper rate).  We just returned to Sosúa and picked up the paper copy of the title.  Yes, we paid cash.  Not sure about loans, high interest rates.  Scotia also seems to have best reputation with US and Canadian citizens.  Be aware, even if you have a well, the water belongs to the country and you pay for access to the country resource (water).  But, we only pay about $5 USD per month to access.  No meter.  No per gallon charge.  Also be prepared for high deposits on utilities, electric and Wi-Fi.  Don't be paralyzed.  It is all doable.  Best of luck!!!

Gainkeeper - that is well off topic.  Feel free to open a thread to ask the question.

its very easy process , i bought a condo in cabarete  tow month ago everything went very smooth,

made tow wire transfer via escrow account, very safe and fast , 3 weeks later came down from Montreal signed  at the notary, very important buy through an agent:)  that’s all goo luck

@Tippj  i sent a money draft through to escrow account twice from my bank-in montreal and every  went ver well nothing to worry  about in my case, deal with well known agent he she will do all the work for you they make great commission,  good luck

One thing to keep in mind is water in the north coast.  The water company has many areas where they either do not supply any water at all or it is only a day or two a week.  You have to have a cistern, a pump with a pressure tank and perhaps drill a well.  Places in Perla Marina are now seeing saltwater in their wells. So, they can only get water by water truck .  And yes you still have to pay CORRAAPPLATA  even if they never provide any water. 

So, keep that in mind.  What good is a house if you have no water supply at all. This is only going to get worse with all the new construction from Puerto Plata to Gaspar Hernandez.

@FatCarib

You'd be surprised how different it really is. 

@charlespainting84

did you buy from an individual or a housing complex , i bought from a private person and my attorney told me you hold your money until everything is verified , taxes paid , title cks. out no bank leans…etc  not even putting down a deposit to hold the property and only @ the closing was money exchanged….thats  how i was led though the process and it worked ot without a  hitch…

we have done several wire transfers to our developer during construction and found that it works very well. the only hiccup we had was our first try at it with our local US bank branch because they were not familiar with the process. but once they knew the process each subsequent transfer has been seamless and we make sure to see the same customer service rep at the bank since they know us and the process. 

@ewenmcc oh planner “seems to “candidly I’ve been reading her stuff for a while. In my opinion she’s the real deal.

@Dou08  I am just catching up on this thread. Has your question been answered if it has great if it has not the next time I login, I will see your reply and then I will add my experience with the goal of it being helpful to you, as well as anyone else who read your question and indeed has the same question so let me know !

I bought a house in Las Terrenas and here is my Real Estate and Banking experience:

1. Banking - They are very cautious and even if you have very good credit they tend not to give you a mortgage on 80% of the cost of the house
2. I was given a $165,000.00 mortgage on a $395,000.00 purchase. I had to come up with cash quick
3. The appraisal is shaky - Your house will most likely be appraised for less than it is worth - I think it is a way for the bank to reduce the mortgage amount without seeming so
4. Chase Bank is the worst. I had to open an account with CitiBank, put my money in there, and be allowed to wire a maximum of $50,000.00 per transaction and be billed $35,000.00 per transaction. That process works well and is safe
5. You can also use Ria money transfer. I find it very safe but there is a limit of about $3,000.00 you can transfer per month (30 days). They charge something like $3.00
6. My mortgage is with Banco Santa Cruz and I transfer money to my account via Ria because of the low fee.   Once you set up properly and patiently everything is fine. I can go online from my laptop or my iPhone to check on my account.
7. I hope this helped - My only bad experience was the loan approval. I was also given 10 years mortgage instead of 20 which I expected but that will get rid of the debt quicker and reduce interest. I was given an interest of 10% which was good at the time

Berthold

Great info.  How long did the bank take from first conversation to disbursing funds?