Quick Due Diligence - Nunez Clark and Palm Hills Real Estate

[ecarignan]

Hi,

I am about to make a commitment to buy a house in Casa Linda (Sosua) from Palm Hills (Ronaldo Scacchi). He wants to use Nunez Clark or Guido Perdomo for the transaction. I was wondering if any of you had dealings with these lawyers?

Also, the real estate guy tells me there is no tax since I'm buying the corporation that owns the property, is that correct or should I expect to get a hidden tax in the near future?

Any comments are much welcomed.

Very informative board.

[Ken]

Guido Perdomo is a competent, trustworthy lawyer. The other one may be, too, but I don't know of him.

When buying a company, you don't pay the property tax you would pay if buying it in your own name. You won't own the property, you will own the company that owns the property--in other words, there has been no change in the property ownership--still the same company as before.

I owned a company that owned land in Samana. I sold the company. I now own a company that owns a condo in Sosua.

One of the advantages of owning a company that owns the property is that if the president of the company dies, the vice president takes over. There is no inheritance tax to be paid to the Dominican government, as would be the case if you owned the property in your own name and later died.

Every year the attorney is supposed to file a report on the activities of the company and also a tax statement. Since you won't be a money making company, there will be no tax to pay but you will be charged by the attorney for preparing and filing the papers. Probably a couple of hundred US.

Most foreigners buying property in the DR either buy a company that owns the property or have the sellers form their company, then buy it.

[ecarignan]

Thanks Ken,

I have heard in the past of Perdomo as well. Now another question comes to mind, since I will be using the property mostly for renting out and sending clients to the DR, I am looking for an trustworhty agency to take care of maintenance of pool, garden and maid services and even if possible, someone to greet my guests at their arrival.

Any such services on the north coast, any referrals? I could also use referrals for agency that would rent out while it's available?

Thanks for all your help.

Just came back from a quick week in Sosua, it was quite nice.

[Robert]

Speak to Eddy, he often posts on this board. He has condo's in Sosua, so I'm sure he can help you.

[Ken]

ecarignan, a person I recommend highly is Carma Biggs, a mature, responsible Canadian ex-pat who is very experienced at this sort of thing. This is her profession in the DR, and among the properties she manages are several in Sea Horse Ranch, the most exclusive residencial area on the North Coast. I called her before writing this to be sure she was still accepting properties and she said that she was. You can reach her at carmabiggs@yahoo.com or at 809-571-1033.

She would not only be able to have the guests met at front door, but could also pick them up at airport if this would be better.

I recommend her without reservation.

[Paul Thate]

when the house is worth over a certain value there are yearly taxes to be paid.
If your realestate agent told you thats not so he is lying and I would watch out..
Every year I pay taxes and believe me If I did not have to I would not.
By the way Guido is excelent and would recommend him highly.

And I assume you are aware of the monthly maintenance fees.

[Golo100]

I am involved in a company that owns real estate and we pay taxes on the property in spite of the fact that the property produces no income, but has maintenance expenses.

What we do not pay are inheritance taxes. But we have to pay for a lawyers to keep us within the legal requirements up to date.

A question. Is this property part of the offering being made in the newspapers by Bancredito? If so, have you checked well why is everybody getting out of these properties all together? Did you check to be sure eveything is clean of mortgages, debts, etc.? Were these properties auctioned or repossesed by the bank?

TW

[Ken]

escarignan, I'd recommend that you post the question on taxes in the legal section so that Fabio Guzman, the lawyer who responds to questions in that sections, can address it. Explain that you are buying a company whose only property is a house of ?? approximate value near Sosua. What you want to know is whether property taxes must be paid annually and, if so, approximately how much.

With respect to monthly maintenance fees paid in Casa Linda, I understand from contact with another purchaser that they are US$170-180/month and go for such things such as the 24-hour security, which I'm told is excellent. By chance I talked with someone Sunday who had gone to Casa Linda earlier in the day. He told me he was stopped and questioned at the gate, then when he arrived at what he said was his destination there was another security man waiting to make sure he went where he said he was going to.

PS: By coincidence, through this board in last month I have gotten acquainted with three people (including yourself) who have purchased or are purchasing homes in Casa Linda.

[Criss Colon]

They can have their lawyer do the paper work,and transfer,but you should have your own independent lawyer to protect your interests.He can see if there are any delinquent taxes or transfer fees due!Have you had a "Title Search" done????????????????? Lots of real estate is sold without a "clear" title.You could really get burned here!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!CRIS

[ecarignan]

golo, as for Bancredito in newspaper, I am not sure, I am aware of 3 houses in Casa Linda that got sold in the last month or so, 2 of them were by the same German owner, including mine, another one was sold by AmericanRealty.

I am relying on Guido Perdomo to make sure the house is clean of any mortgage and so on. Otherwise, how do I check these things? Can I rely on the lawyer to verify and give me a nice and clean property. I have a copy of the title.