Tuesday, October 27, 2009

Dominican Republic Real Estate - Purchase Process for Foreigners

As a Canadian expat and a real estate professional living and working in the Dominican Republic I can say without a doubt, "is it easy for a foreigner to purchase property in the Dominican Republic?" is the most common question asked by foreigners considering purchasing a second home or investment property in the Dominican Republic. I am always pleased to hear it because I'm able to answer, "easy as pie! With the right lawyer and real estate professional behind you!".
The Dominican Republic is host to more tourists annually than any other tourist destination in the Caribbean, almost 4 million tourists visited the Island in 2007 (Caribbean Tourism Organization, 2007 Statistics, March 2008). The progressive Fernandez government, who was re-elected for a further 4 years in May 2008, is very popular for their policies which are creating a progressively more hospitable and transparent business environment for foreign investors. The current government has implemented many incentives to encourage foreigners to invest in their beautiful island. This foreign investment friendly government combined with the high volume of daily international flights, the tropical paradise setting and the lowest prices in the Caribbean has allowed the Dominican Republic to be counted among the most up and coming real estate tourism destinations in the entire world; and back to the topic of this article, it is very easy for a foreigner to purchase property in the Dominican Republic. There are no additional taxes or restrictions on foreigners and the process is quite similar to purchasing in North America or the UK, following is a basic outline of the process:
Purchasing a property in the Dominican Republic consists of 3 contracts:
1) Offer of Purchase - The first contract is a basic one page document which consists of the potential buyer's name, the property that is receiving the offer, the offer price and any financial terms and conditions to be included within the offer. All counter-offers will be executed on this contract.
2) Promise of Sale - This second contract is drawn up by the buyer's attorney, after the Offer of Purchase has been accepted. This contract consists of the seller's name and personal information, the buyer's name and personal information, details of the property being purchased, agreed purchase price, and any financial terms and conditions.
3) Closing Contract - The final contract is similar to the Promise of Sale except that it includes the exchange of money and property. The buyer's attorney will register all documents with the title office and pay necessary fees and transfer taxes.
Voila! You are the new owner of your very own piece of paradise!
You will receive your new deed within approximately 90 days.
If you are considering purchasing property on this beautiful island please do not hesitate to contact us directly, we are always happy to help.

Joanne Hammond is the broker/owner of Remax Ocean Side Realty in Puerto Plata, Dominican Republic. Joanne worked in commercial real estate in Canada for 7 years before moving to the Dominican Republic 4 years ago where she established the Remax franchise along with her husband. For more information on both
Dominican Republic commercial real estate or residential listings of Dominican Republic real estate check her website or call her directly.
Joanne Hammond MBA
Broker
RE/MAX Ocean Side Realty,
Puerto Plata, Dominican Republic
Dominican Republic Real Estate
info@dr-remax.com
Cellular - 809-657-4141
Office - 809-261-1168

For more information on the website check Dominican Republic Real Estate.

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