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  #11  
Old 01-10-2003, 09:16 AM
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Paul Thate
Default casa linda

Is your new purchase in the old casa linda or in the new part.?
While security in the old part is excelent it might not always be like that in the new part.
There are less houses to share the cost. In the futur the old owners might balk at subsidising your cost.
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  #12  
Old 01-10-2003, 09:20 AM
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ecarignan
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criss, thanks for the warning. this goes back to previous reply, can I rely on Perdomo to do the Title Search. I can use my own lawyer here in Canada but I doubt he would be able to do much because he is a corporate lawyer not knowing the regulations of the DR. Again, can I use Perdomo to do the transaction and give me a clean deal or should I use another lawyer to do the Title Search?
Also, I am supposed to forward 10% of the amount to the lawyer, in this case, Perdomo in his Trust account. Does this work out the same way as in North America, if something goes wrong, the money is still in the lawyer's in trust account?
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  #13  
Old 01-10-2003, 09:34 AM
Ken Ken is offline
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ecarignan, I believe you can trust Perdomo. I have never heard anything negative about him and know several people who use him and have great confidence in him. However, if you have any doubts at all, I recommend Fabio Guzman, the attorney who answers questions to the Legal section. His offices are on the 3rd floor of the Bommarito building. His website is www.drlawyer.com, and you can email him at info@drlawyer.com. But have the title search done here, not in Canada.

I think the apparent confusion over taxes is easily explained. I am sure what your realtor was talking about were the taxes you would pay if buying the property as an individual. A property tax--I believe it is 4% of the value--would be paid at the time of purchase if you purchased as an individual. Since you are buying a company, this tax isn't collected. Whether or not you pay property taxes annually is another matter and should be checked on.

Re trust account, I can't speak from experience with Perdomo, but I know from experience with Fabio Guzman that he maintains a trust account in Florida where the money is held until the deal is finalized. I would be extremely surprised if there were any problem with Perdomo. I have heard nothing but good about him, and Paul Thate--who undoubtedly does have experience with him--recommends him highly.

We are talking about two of a very short list of attornies that can be recommended highly. You can't be too cautious in checking out attornies, but in your case I think you are in the clear. If it were me, I would use either one without hesitation.

PS: Re the title that you have in your hand, that does not take the place of a search by the attorney. Since you are buying a property owned by a foreigner, chances are the title is good. But when buying from a Dominican owner there are often problems because though the title is genuine it is in the name of some dead relative. The family has never gone through the expense of bringing it up to date. When this property is sold to another Dominican there are seldom problems, but when sold to a foreigner problems almost certain because then the heirs start clamoring for their share. But, as mentioned above, since you are buying a property that was owned by a foreigner it is very likely the title is valid. But you still want to have a title search to be sure their are no liens against the property, etc., that have not been recoreded on the back of the title you hold in your hand.

Last edited by Ken; 01-22-2003 at 02:31 PM.
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  #14  
Old 01-10-2003, 09:48 AM
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ecarignan
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thanks Ken, suddenly, you make me feel a little more confident. I think I will stick with Perdomo and have him do extensive Title Search.

Paul, it is in the old section (1998), which consists of approx 20 or so houses. I know for a fact that security is excellent, I wanted to visit another house and was accompanied by a guard at all time.

Insurance? Are the home insurance in the DR. I know fire does not seem to be a problem and somehow theft is controlled by the security bill but are there responsability insurance (ie. is someone drowns in the pool or if a tree falls on a guest's head? I have read a lot but can't find anything on insurance. Since there would be no mortgage, the mortgage insurance is not needed either.
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  #15  
Old 01-10-2003, 10:00 AM
Ken Ken is offline
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Insurance is available. I'm told it is expensive, but know nothing about it. Besides the cost, you need to check on the record of the company with respect to paying claims. I have heard a lot of horror stories about insurance companies during my years in the DR, but have no first-hand knowledge.
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  #16  
Old 01-10-2003, 10:14 AM
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ecarignan
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Basically, I should stay away from insurance, right? This is something that we can't do in Canada. Can someone sue me if he trips on a coconut and breaks a leg or is there no such thing in the DR, live and let live!
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  #17  
Old 01-10-2003, 11:49 AM
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rendul is on a distinguished road
Default Insurance

We rent out our place in Cabarete and the lease/rental agreement, considered binding and legal, disavows us of all responsibilities regarding injury. I was told that if you get insurance you pay high fees for years and should there ever be a claim it is almost impossible to claim. Even if you submit a claim the insurance companies do not pay and you end up in court paying court fees as well. We made a comprehensive lease/rental agreement that is signed well before occupancy. Hope this is helpful.
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  #18  
Old 01-10-2003, 11:53 AM
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ecarignan
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Hi Rendul,

Would it be at all possible to get a copy of that Rental agreement sent to my e-mail; eric.carignan@commtech.ca

Appreciated.
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  #19  
Old 01-10-2003, 12:17 PM
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rendul is on a distinguished road
Default Agreement

Done
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  #20  
Old 01-10-2003, 12:55 PM
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goneglobal
Default If buying a company in the DR.....

does one assume any or all debt the company has incurred up to date of sale....and if so, how does the buyer of the existing company protect themselves from any unknown and pre-existing
liabilities incurred by the company and/or its officers/directors?

I jumped in a bit late here and only Know that in some juristrictions this might be a concern....
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