This allows you to have an overview of the reality of that person or company, and possible effective response in case of breach of contract or litigation , if you do business with an insolvent person and who is in a difficult economic condition (owes many people and is in breach or legal), in case of claim, your response will be based on that, you have nothing to execute for which nothing to lose, then, even start a legal process , you will have nothing that guarantees the constraint so that be returned what was paid or compensated (if applicable).
All these certifications can be delivered by the seller or rather you must deliver it to them, however, we suggest that you obtain it yourself as part of your property verification, where you can validate that the information provided is real, unfortunately these documents can be falsified, for which we suggest that you make a consultation with a firm or law firm in Santo Domingo, Dominican Republic, specialist in real estate research.
The real estate sector in the Dominican Republic in recent years has been one of the sectors that has shown the greatest growth, with offers in the market that range from all kinds and needs adapted to all economic levels, for which purchase transactions and real estate sales, are in constant movement, and as a result of this arise things contrary to the law and to the detriment of the buyer, such as:
- Acquire or buy a property, without knowing its Legal Status of the Property, with registered Mortgages/Privileges, that is, loans that guarantee the same property.
- Pending taxes payable to the General Directorate of Internal Taxes of the Dominican Republic, this is the Real Estate Property Tax (IPI), regulated by Law 18-88
It is very important to know about this tax and its regulation, we indicate the relevant points:
- Concept: This is an annual tax that is applied to the total amount of taxed real estate assets registered by individuals and Trusts.
- Rate: % to pay.
- Individuals: a rate of 1% is applied on the excess value of ( RD$7,710,158.20 ) of the encumbered assets.
- Trusts: 1% on the total value of the encumbered estate..
This tax is paid in two (2) semi-annual installments, with the deadline for the payment of the first installment being March 11 and the second on September 11 of each year.
Buying a property in plans, without certifying the existence of that Builder or Developer, as well as the status of the parent title. Read webtoons xyz.
This last one is very common, people sell a project without actually existing, for which it is of the utmost importance that you obtain a Mercantile Registry Certificate from that company/construction company that develops that project, with which you will be able to identify:
- Is there such a Company / Company (construction)?
- Who are your legal representatives and partners/shareholders?
- What is the capital of that company? Will she be able to take responsibility in case of non-compliance with the project or the sale?
Also, it is suggested to investigate the history in the construction/real estate sector that this construction company has had, investigate if, for example: Have they carried out other projects? Where and their characteristics.
After you have evaluated and are sure of those little things, the next steps to take are:
- Payment of Taxes for Real Estate Transfer, which we remind you, is 3% of the value of this.
- Transfer of Title, before the corresponding Real Estate Jurisdiction, in other articles we have referred to some brushstrokes such as transferring or buying Luxury mansions available in Dominican Republic, if you are interested, you can see them in detail in the following contents:
- Requirements to transfer a real estate property in the Dominican Republic
- How to transfer a Real Estate Property in the Dominican Republic?
- Buy House in the Dominican Republic from Spain