KEY STEPS FOR INTERNATIONAL INVESTORS

1. INITIAL STAGES
The property purchase process in the Dominican Republic differs slightly from that of other countries. Here, the first step involves a mutual written agreement between the buyer and the seller on the property price, followed by a good-faith deposit-usually between US$500 and US$1,000.

If the seller accepts the offer, the transaction proceeds to the next stage. However, if the offer is not accepted, the deposit is fully refunded to the buyer. Once both parties agree on the sale terms, a binding legal document known as a “PROMISE OF SALE” (Contrato de Promesa de Venta) is drafted by a licensed lawyer or Public Notary and signed by both parties.

It is strongly recommended that all foreign buyers retain a qualified attorney before signing any documents or transferring funds. The attorney will conduct due diligence on the property-verifying ownership, title status, and any potential legal encumbrances-before the Promise of Sale is finalized. Alternatively, the Promise of Sale can include a clause making the purchase conditional upon successful due diligence.

2. THE PROMISE OF SALE (CONTRATO DE PROMESA DE VENTA)
The PROMISE OF SALE is a legally binding contract that formalizes the agreement between buyer and seller. It must be signed before a Public Notary and should include all relevant details of the transaction. This document serves as the foundation for the final DEED OF SALE (CONTRATO DE VENTA).

 A professionally prepared Promise of Sale should include:

• Full names and legal details of both parties (including spouses, if applicable)
• Legal description of the property
• Agreed purchase price and payment terms
• Default and penalty clauses (if applicable)
• Date of property handover
• Confirmation of due diligence (completed or pending)
• Seller’s representations and warranties to prevent misrepresentation
• Seller’s obligation to sign the Deed of Sale once full payment is made

Because this document is of critical legal importance, it should always be prepared by experienced professionals who are fluent in Spanish and familiar with Dominican property law. Working with a trusted legal and real estate team ensures that every aspect of the transaction is transparent, compliant, and secure.

3. IMPORTANT POINTS TO REMEMBER ABOUT BUYING PROPERTY IN THE DOMINICAN REPUBLIC

• Never transfer funds or deposits without proper legal documentation and professional guidance. This is particularly important for pre-construction or off-plan developments.
• Verify the seller’s ownership and ensure the title is clean and registered.
• Use an Escrow account to securely hold funds until all contractual obligations are met. An Escrow account is managed by a neutral third party to protect both buyer and seller.
• For cash transactions, a Deed of Sale (Contrato de Venta) may replace the Promise of Sale. This is simpler and more cost-effective but still legally binding and must be signed before a Public Notary with your lawyer and broker present.