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The tropical climate of the Caribbean region has always been alluring thousands of people escaping from the cold in their home countries. And the recent world economy changes seem to reinforce the tendency. Thus, the Caribbean nations constantly appear in international ratings of the best places to retire and buy real estate. Most importantly, the Dominican Republic is always cited among the first ones. But if you consider moving closer to the Caribbean sun, here are some useful tips about buying real estate in the Dominican Republic. We believe they will help you to take the right decision, save your time, and avoid some common mistakes.
DO get to know the Dominican reality first
That’s the first and most important advice we can give you. In other words, before you decide to buy a property here, visit the country first. It will help you to choose the most suitable for you place to settle down. Besides, it will prepare you for the very relaxed Dominican lifestyle. Understanding that things are different and showing certain flexibility while adapting to a new reality will save you stressing out. After all, tranquilo and mañana are the general motto of the Dominicans.
DON’T forget a real estate agent
A well-experienced and professional realtor can save you a lot of time in search for your ideal Dominican home. But since there is no licensing requirement to sell real estate in the Dominican Republic and most property listings are non-exclusive, you need to be careful while choosing the right realtor. Unlike in the USA, Canada or Europe in the Dominican Republic it’s normally one real estate agent that manages the purchase process. In other words, there are no buyer and seller agents, but Corcons do act us Real Estate Buyer's Agent. Generally the competent agent would be able to explain the government incentives for buying real estate in the Dominican Republic. Don’t hesitate to contact Corcon's Real Estate Buyer's Agents for any recommendation or real estate professional advice you may need.
DO get a reputable lawyer
You can do without a real estate agent and search for properties on the Internet because most real estate developments list their villas and condos online. But what is indispensable is the professional advice of a good lawyer. The real estate buying process in the Dominican Republic normally consists of 3 essential steps and contracts. Those are the Offer to Purchase, Promise of Sale and Closing Contract. The last one is final and includes the exchange of money and the transfer of the ownership title. The attorney handles registering all documents with the title office, running an official demarcation (deslinde) check and paying necessary fees and transfer taxes.
DON’T be afraid of financing your real estate purchase
No matter if you buy a home or condo in Sosua, Cabarete, Las Terrenas, Punta Cana or Santo Domingo, you will always find a list of developers that offer direct owner financing. That makes the whole purchase process much easier. You will only need to put the down payment which is normally 10-20% of the selling price. The rest is financed under a fixed interest rate for 5-20 years. While you are paying, the developer holds the title which you get after the final payment is made and the Closing Contract is signed.
Traditional mortgage with a local Dominican banks are available. Although the financing model is different from the American, Canadian or Europaen banking systems, there option are not as bad as it may seem. There are certain limits as to the maximum loan amount (normally 70%) and maximum loan term.
Whether it’s a developer or bank financing, you can cover your mortgage payments from the rental income. If you use the property as a second home investment or vacation home, you can rent it when you’re not in the country. Corcons will offer an attractive property management program which will guarantee you a stable income.