Buying a Home in the Dominican Republic

Buying a home in the Dominican Republic can be an exciting prospect for expats. The country offers a vibrant culture, beautiful landscapes, and a lower cost of living compared to many Western countries. However, navigating the real estate market can be challenging due to differences in laws and practices. This guide aims to provide essential information for expats considering buying a home in the Dominican Republic.

How do I find houses for sale in the Dominican Republic?

There are several ways to find houses for sale in the Dominican Republic. Online property portals and real estate agencies are the most common methods. Websites like Point2Homes, Caribbean MLS, and Dominican Republic Real Estate list properties from all over the country. Local newspapers also have real estate sections. It's advisable to work with a reputable real estate agent who understands the local market and can guide you through the process.

Are there restrictions on foreigners owning property in the Dominican Republic?

Foreigners have the same rights as locals when it comes to buying property in the Dominican Republic. There are no restrictions on ownership, and foreigners can own property outright in their name. However, there are restrictions on owning property near the border or the coast. To get around these restrictions legally, foreigners can establish a Dominican corporation to hold the property.

Does the Dominican Republic have an MLS type system?

The Dominican Republic does not have a Multiple Listing Service (MLS) like in the United States. However, many real estate agencies have extensive listings and networks, and there are several online portals where properties are listed for sale.

Do brokers have licenses and how do I know if they are licensed?

Real estate brokers in the Dominican Republic are required to be licensed. You can verify a broker's license by asking to see it or checking with the Association of Real Estate Companies of the Dominican Republic (AEI).

What documents are required when buying a home?

When buying a home in the Dominican Republic, you will need a valid passport, a tax registration number (RNC), and a Certificate of Title for the property. The seller should provide a Deslinde (a property survey), and a Certificate of No Liens to prove there are no outstanding debts on the property. A Purchase Agreement or Contract of Sale will also be drawn up.

Do I need a lawyer when buying a home in the Dominican Republic?

Yes, it's highly recommended to hire a lawyer when buying property in the Dominican Republic. The lawyer will conduct a title search, ensure all documents are in order, and handle the transfer of funds. Legal fees typically range from 1% to 2% of the purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in the Dominican Republic. However, getting a mortgage can be more challenging for foreigners due to the requirement of a local guarantor. Many expats choose to buy property outright to avoid this complication.

Are there inspections that take place, and if so what is that process like?

Property inspections are not as common in the Dominican Republic as in some other countries. However, it's advisable to have one done, especially for older properties. You can hire a professional inspector who will check the property's condition and provide a report.

What are some of the pitfalls to avoid when buying property in the Dominican Republic?

Some common pitfalls include not conducting a thorough title search, not verifying the broker's license, and not having a clear understanding of the total costs involved in the purchase. It's also important to be aware of potential issues with property located near the coast or border due to restrictions on foreign ownership.

Expats Talk about Real Estate in Dominican Rep

"I would be sure to study Spanish as it makes the transition much easier. I would just come initially, if possible, for a six month period every year, and then go back. I would not buy anything for at least two years, until you decide that you really like it and until you have seen the entire country," said one expat living in Santo Domingo.

"When you move to the DR, unless restricted by work, I would spend a couple of months in a few different areas as the country is so diverse. Once you have decided on the area then just put the word out that you are looking to rent and the potential landlords will find you. Do remember to take into account that access to electricity and water are not automatic, so you need to check their availability. The prices of property vary dramatically by area - the more touristy and closer to the sea, the higher the price," wrote a member in Santo Domingo.