Before Buying Property in the Dominican Republic: What to Check Before Handing Over a Deposit

A property can come with an attractive price and a negotiation that looks simple. The trouble starts when the buyer hands over money before confirming who is entitled to sell, what exactly is being bought, and under what conditions that money can be recovered if the deal falls through.

Before reserving a house, an apartment or a plot of land, it helps to organize the review around five questions. They are practical checks to identify risks before taking on commitments.

1. Who is the registered owner, and who will sign for them?

The certificate of title (certificado de título) evidences ownership of a parcel or condominium unit and who holds it. The first check is to compare that document with the seller's identity and with the property being offered. Dominican registry rules also distinguish the certificate of title from the constancia anotada, which covers rights over a portion of a parcel and calls for a closer look at its particular situation. Source: Registro Inmobiliario, DNRT-DT-2025-003.

As part of the review, ask for the documents that explain any discrepancy: representation under a power of attorney, a company acting as owner, co-ownership, or rights arising from an inheritance. Someone showing the property or negotiating the price does not, on its own, prove that they can bind the owner.

2. What liens appear in the registry?

A photo of the title is not a sound basis for the decision. The Registro Inmobiliario points to the certification of the property's legal status (certificación del estado jurídico del inmueble) as the service for checking whether liens or encumbrances exist. It can be requested through the institution's in-person and online channels. Source: Registro Inmobiliario FAQ.

In practice, get recent information, assess what it shows and plan for an update close to closing. If a mortgage appears, for example, the contract should spell out how it will be released, who will provide the documents and how that will be coordinated with the payment. A verbal promise to sort it out later leaves an essential point unresolved.

3. Does the property you saw match the one you will buy?

The document review should be paired with a physical check suited to the transaction. For land, a surveyor should examine location, area, boundaries and how they match the plan. Access, and whether there are occupants or third-party uses, also matter.

For an apartment, confirm exactly what the price includes: the unit, parking spaces, storage and any right of use being offered. Ask for the condominium documents and the available information on fees, restrictions and management. If the property is under construction, add the plans, permits and delivery terms of the project to the analysis.

These are due diligence checks: their scope should fit the property and how you plan to use it.

4. What happens to the deposit if a problem comes up?

Before transferring money, ask for the agreement to state clearly:

• Who receives the funds, and in what capacity.

• Which property and transaction they apply to.

• How much time there will be to review the documents.

• What conditions must be met to close the purchase.

• In which cases the money is returned, within what period and by what mechanism.

• What consequences each party faces for non-performance.

Do not assume that calling the payment a "reservation" guarantees it will be returned. The review should consider the full text of the agreement and the circumstances of the deal. A well-drafted condition lets you discuss the risk before handing over the money, while there is still room to negotiate.

5. Is the closing organized, including taxes and registration?

The budget should cover formalization costs and applicable taxes. The DGII (the Dominican tax authority) states that the real estate transfer tax is 3% and that taxable transfers have six months from the transfer deed to pay it without the surcharges and interest that apply after that deadline. The taxable base and any exemption must be confirmed for the specific transaction. Outstanding tax obligations that could affect the transfer should also be reviewed. Source: DGII guide to property transfers and clearances.

Decide from the start who will prepare and file the application, how it will be followed up and what documents will prove the registration result. The Registro de Títulos is the office that records transfers and issues the corresponding certificates. Source: Registro de Títulos.

Before you commit your money

Ask for a review that connects owner, property, liens, contract and closing. If one piece does not fit, the next step is to clarify it and document a solution before taking on new obligations.

At Veloz Pichardo Abogados y Asociados we can support you in the legal review of a property purchase in the Dominican Republic. Tell us which property you are considering and where the negotiation stands.