Deslindada Process

[uslawyer]

I represent a private U.S. lender, who will be loaning money to a Dominican S.A. in return for a mortgage on their property. In a title search by Stewart, it shows that the property we will be placing the mortgage on has a co-owner. The borrower has informed us that the deslindada process takes approximately 6 months, and has insisted that obtaining two cartas constancias is sufficient to secure our interest in the property. Is this true or should we insist on the deslinde first, so that we have an accurate, independent legal description associated with the mortgage. Any advice would be appreciated. Thanks.

[Robert]

Originally Posted by uslawyer

I represent a private U.S. lender, who will be loaning money to a Dominican S.A. in return for a mortgage on their property. In a title search by Stewart, it shows that the property we will be placing the mortgage on has a co-owner. The borrower has informed us that the deslindada process takes approximately 6 months, and has insisted that obtaining two cartas constancias is sufficient to secure our interest in the property. Is this true or should we insist on the deslinde first, so that we have an accurate, independent legal description associated with the mortgage. Any advice would be appreciated. Thanks.

I think you will find most knowledgeable buyers insist on a deslinda to avoid future potential problems.

[uslawyer]

Thank you Robert.

Originally Posted by Robert

I think you will find most knowledgeable buyers insist on a deslinda to avoid future potential problems.

[Fabio J. Guzman]

A "deslinde" ("segregation") is highly recommended. Otherwise, you may find it difficult to foreclose in case of nonpayment of the loan.

[Escott]

Is 15,000 Pesos per lot reasonable price to pay per dislinda?

[Camden Tom]

.......does that at all relieve the need for a deslinde title?

[Lissa]

Originally Posted by Escott

Is 15,000 Pesos per lot reasonable price to pay per dislinda?

It depends of the size of the lot, and where is it, it's not the same a small lot or one that is located in residencial area that one that have a couple sq/mts or located in the countryside..

[Fabio J. Guzman]

RD$15,000 for a "deslinde" would be on the cheap side.

Title insurance will not cover a mistake in the location of the property if there is no deslinde.

[newuser]

Anyone care to explain what a deslinde is?

[Fabio J. Guzman]

"Deslindar" means to legally segregate a property from a larger surrounding property. The property segregated from the larger piece will have a new cadastral designation or parcel number.

The process requires the hiring of a licensed surveyor who will draw up a plot plan and submit it to the Land Court for approval. Once approved, the Court will authorize the Registry of Titles to issue a new title for the segregated piece with a new parcel number.

When a buyer acquires a piece of a property within a larger piece with a unique cadastral designation (let’s say, for example, he buys a 1,000 square meter lot within Parcel X which has a total of 50,000 square meters), his 1,000 meter lot is not legally defined as to its location within Parcel X unless he obtains a “deslinde”.