Can the real estate title be under a corporation?
No matter which way you own property, personal name or corporation, you own that property outright with a title.
Are there any property taxes that we must pay?
Yes. The property tax is called “IPI” or Impuesto Patrimonio Inmobiliario which is 1% of the property’s recorded value. If the property you are purchasing is owned by a corporation, the applicable tax is taxed on the assets (impuestos sobre activos), but the company must pay the higher value of either the 1% tax over assets or 25% over its net income. Companies that only own property are generally subject to the 1% tax over its assets and that asset is normally the piece of real estate.
What are typical closing costs?
Your closing costs will be your attorney fee and a 3% transfer tax of teh value of the property.
How long does a closing usually take?
You can close a transaction as soon as 5 days. The typical closing time is 45 – 60 days.
Does financing impact the closing?
Banks will require appraisals to approve loans. If financing has been pre-approved, is should not impact the closing.
What are the steps involved in closing?
Once the buyer and seller have verbally agreed to a purchase price, all parties sign a one page Property Reservation Form. When the Property Reservation Form is signed, the buyer wires a fully refundable 10% deposit into the escrow company’s account and the seller takes the property off the market for 10 – 15 days. Once the deposit is in escrow, the buyer’s attorney and the seller’s attorney discuss the legal terms of the transaction, and prepare an initial sales contract, which is executed no later than 15 days following receipt of the deposit. Once the initial sales contract is signed by all parties, the deposit becomes non-refundable and the seller has a binding commitment to sell upon completion of the due diligence process. Once the due diligence is complete, a definitive sales contract is executed between the parties. Final payment is made and the property is transferred to the buyer.
Is there a due diligence period prior closing?
Yes, it is common practice in the Dominican Republic to perform due diligence on the property. Buyers want to make sure the property is free of liens and encumbrances, The Seller is up-to-date with payments of property tax, the surface areas of the property is what the title says, ect.
Are there monthly maintenance costs in the resort?
Yes. Casa de Campo® Resort charges all property owners an HOA fee, referred to locally as “Infraestructura.”
What are the maintenance fees like HOA?
The HOA is calculated based on the size of your land and the size of construction of your property. Exact HOA cost for any property that interests you can be provided.
As property owner, are we allowed guests and family to visit us in the resort? If so, is there a cost?
Yes, you are allowed as many guests and family that you want to visit. After all it is your house, and you have full, un-restricted use. If you rent your house, the renters will have to pay a per-day resort fee.
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