buying propery in dr - step by step guide

Ilya · #1 07-02-2007, 02:56 PM

hello everyone.
few things i am trying to understand, hopefuly someone can clarify them for me:

1. how much time it is going to take from the moment i make an offer to the possesion? month, two, year?
how long is the title clearing going to take?
how does it differ if i pay cash versus finance? is cash faster or irrelevant as long i provide full amount at the closing?
2. what is happening when i make an offer? do i have to put some sort of deposit (how much) and pay the rest on closing?
3. if 2 is yes, who holds an escro account, is it safe?
4. how many inspections i am entitled to have?
5. how many times do i have to come over to dr during the process of buying? my understanding that at least 2 times: 1st time to make an offer and sign a contract and 2nd time for closing, unless some sort of power of attorney is executed.
6. how do i pay: bank check, bag of cash, wired money? how soon i'll get the title and exactly how: by mail, i have to go and get it personaly?
7. what is the quality of properties in dr? i don't mean concrete walls and foundation, i am sure it is solid and can sustain hurricanes, but i am talking about general quality: roof and windows likage, mold, bugs, cracks and so on.
8. how is the criminal situation over there, what's good and not.
my undestanding that north coast is ok, south like sd is not.

many thanks!

Robert · #2 07-02-2007, 03:09 PM

Start here: Dominican Republic Real Estate - Buying Property

Then take a look here: Dominican Republic Real Estate - Moving to the DR

Then come back and post your questions and you'll be sure to get detailed answers.

If you still have questions, send an email to Curt Erikson and he will help you out.

Email: curt.realestate@dr1.com

Ilya · #3 07-02-2007, 03:36 PM

appreciate the links - very useful and answers first half of my questions.
questions ## 5, 6, 7 and 8 are still unanswered, would appreciate any info/advices/recommendations.

many thanks!

whirleybird · #4 07-02-2007, 06:24 PM

Do you employ a good lawyer here? If so, he/ she should be able to help you with all your questions, ours did...

ecarignan · #5 07-09-2007, 11:58 AM

Hi Ilya,

Bought and sold 5 properties in the last 4 yrs. Here are my answers to some of your questions:

How many visits: One to view the property (don't buy without viewing). You don't have to be in the DR to make an offer, fax is fine. Then preferably 2 to close the deal and take ownership (although you can be away and give power of attorney to your lawyer). Use someone like Guido Perdomo or Guzman.

How to pay: Wire transfer is preferable. 10% down within a week of offer accepted, balance on closing.

Quality: Most villas/condos targeted at foreign buyers are good quality, comparable/if not better than quality in Florida for example. Tiled roofs are good, cracks can easily be repaired, most older homes/condos have wooden windows which need replacement, newer ones have aluminium which is better.

Criminal situation is not any worst than North America or Europe. No worries there.

Just come down, have a look at properties and make your move. DR is a fun place to be.

dreamsource · #6 07-29-2007, 12:06 AM

Ilya,
Just purchased our first property and it was quite uncomplicated. As stated by ecarigan, you do not have to be physically present for closing, your RE agent can do that for you if they have residency (and if they are trustworthy).
We wired the money to our atty's escrow account. Should be no problem if you use a well recommended attorney.
Best of luck to you. We make our first visit to our North Coast hideaway soon.

J D Sauser · #7 07-30-2007, 01:50 PM

As to your #8... quality of homes:

If you are from the US, you will be pleased to find out that most homes are all concrete block (CBS) construction and that in most cases the roof is poured concrete too... so it's unlikely to fly away as seen on TV in places like Florida. If however, you are from Europe, you will soon be discontent to find that most homes are nothing much more than just a painted raw construction, there is no inner or outter insulation (yes, it's not cold... but it's hot and humidity is an issue)... some basic technology and/or knowhow is dearly missing, most typically as to limit humidity from the ground to migrate up the walls, to mention ONE of the prevalent problems many homes here suffer. Poor planing is an issue too in many cases... and all that independent or price or value of many homes found here (on the North Coast at least). You will find that Million Dollar homes many times have the exact same shortcomings than a 150K home... they're just bigger, the bathrooms and finishing materials may look nicer and location may be a major part of the price difference, but the building technology or lack thereof is often very much similar or the same. Thus many homes need constant re-painting (specially around footers inside) because of humidity problems which could easily have been avoided. Or home owners have to find out that while water service is present, it's intermittent creating the need for a water tank for which no space was planed for. Same for AC compressor units and bad ventilation designs. Quite frequently you may find out too late that your "development" gets visited by a river every now and then... or that the home has been build on a spot lower than any water escape way... (watch out for garbage remains hanging in shrubs!) and don't you think these homes have been specifically built to bug "gringos", Dominicans too (no, not only poor ones) happily construct homes in areas which have a strong history of flooding without even adding at least some hight to their new homes (check out Sosua Bajo, La Maranata etc...).
This is not to paint an ugly picture of local real estate, just to caution you and whom ever it may concern... planing is not a national sport here. Like most everywhere, there are specific problems that need to be taken into account and sadly it does not seem to be part of the national culture to do that. One coming from a different part of the world needs to invest a lot of time and effort to catalog these issues first and then only plan and build accordingly or scrutinize possible investment objects as to their aptitude under the local circumstances.

... J-D.