Obtain a judicial status certificate from the title Registry Office.
Agency: Title Registry Office
A non-encumbrance certificate (“Certificado del Estado Jurídico del Inmueble”) must be obtained from the Title Registry Office in order to ensure that the property has no liens and there are no other conflicts related to it.
With the new Ventanilla Expres (launched July 2017), the non-encumbrance certificate is obtained between 3 days and 5 days at the Land Registry of the Distrito Nacional, Santo Domingo, La Vega and Santiago.
To obtain the certificate without using the Ventanilla Expres takes between 15-20 days, and is less likely to be used.
Time and cost: 4 days, DOP 2,060 (Cost for “Ventanilla Expres”)
- DOP$ 2,000.00 (100% more than regular fee of DOP$ 1000.00) in accordance with Act 01/2017
- Plus stamp duties for DOP$50.00 (Law 91)
- Plus DOP$10.00 (Law 91/83))
Site inspection to establish the exact location of the property
Agency: Surveyor (agrimensor)
A surveyor (“agrimensor”) inspects the site in order to establish the exact location of the property. This is not mandatory, but a way the buyer has to protect against potential problems.
Time and cost: 2 days, DOP 8,500 (DOP 5,000 – 12,000)
Obtain the appraisal of the property and the tax certificate at the Dirección General de Impuestos Internos (Tax Authority)
Agency: Tax Authority (Dirección General de Impuestos Internos)
The parties must request the valuation of the property for the payment of the transfer tax. A certificate is also obtained at the DGI stating that the real estate taxes are up to date.
For online certification requests to the Tax Authority (DGII), first must have a Tax ID and access to the Virtual Office (Oficina Virtual), with the Tax ID, a Password and a token or code card required by the Tax Authority (DGII). This service can be paid with credit card. The certification is issued with a bar code and can be printed and verified online at www.dgii.gov.do
Time and cost: 6 days, DOP 300 (DOP 300 to obtain the tax certificate)
Notarization of the sale purchase agreement
After the agreement is reached and the documentation has been exchanged by the parties, the sale purchase agreement must be notarized by the public notary. The Notary can no longer freely establish his fees after the enactment of the Notarial Law No. 140-15 (which institutes the Dominican Bar of Notaries (Colegio Dominicano de Notarios) in August 2015. The Notaries have the obligation to observe the schedule of fees set forth in this law which are:
Art. 66: For every hour of service: DOP 1,000. After three hours, DOP 2,000 per hour.
Art. 66 A) Sale and purchase agreement fee schedule:
- Between DOP 1000.01 to DOP 100,000: DOP 3,000
- Between DOP 100,000.01 to DOP 200,000: DOP 5,000
- Between DOP 200,000.01 to DOP 500,000: DOP 10,000
- Between DOP 500,000.01 to DOP 1,500,000: DOP 20,000
- Between DOP 1,500,000.01 to DOP 3,000,000: DOP 25,000
- Between DOP 3,000,000.01 to DOP 5,000,000: DOP 30,000
- Between DOP 5,000,000.01 to DOP 10,000,000: DOP 40,000
- Between DOP 10,000,000.01 to DOP 20,000,000: DOP 50,000
- Between DOP 20,000,000.01 to DOP 30,000,000: DOP 60,000
- Between DOP 30,000,000.01 to DOP 40,000,000: DOP 70,000
- Between DOP 40,000,000.01 to DOP 50,000,000: DOP 80,000
- Between DOP 50,000,000.01 to DOP 100,000,000: DOP 100,000
- Between DOP 100,000,000.01 to DOP 150,000,000: DOP 200,000
Time and cost: 1 day, DOP 50,000
Fee schedule to Notarize the sale agreement is the following:
- From DOP 1,000.01 to DOP 100,000.00: DOP 3,000.00;
- From DOP 100,000.01 to DOP 200,000.00: DOP 5,000.00;
- From DOP 200,000.01 to DOP 500,000.00: DOP 10,000.00;
- From DOP 500,000.01 to DOP 1,500,000.00: DOP 20,000.00;
- From DOP 1,500,000.01 to DOP 3,000,000.00: DOP 25,000.00;
- From DOP 3,000,000.01 to DOP 5,000,000.00: DOP 30,000.00;
- From DOP 5,000,000.01 to DOP 10,000,000.00: DOP 40.000.00;
- From DOP 10,000,000.01 to DOP 20,000,000.00: DOP 50,000.00;
- From DOP 20,000,000.01 to DOP 30,000,000.00: DOP 60,000.00;
- From DOP 30,000,000.01 to DOP 40,000,000.00: DOP 70.000.00;
- From DOP 40,000,000.01 to DOP 50,000,000.00: DOP 80,000.00;
- From DOP 50,000,000.01 to DOP 100,000,000.00: DOP 100,000.00;
- From DOP 100,000,000.01 to DOP 150,000,000.00: DOP 200,000.00;)
Payment of taxes at the Dirección General de Impuestos (Tax Authority)
Agency: Tax Authority (Dirección General de Impuestos Internos)
After the inspection is over and the value of the property is calculated, a tax of 3% of the property value must be paid before the “Dirección General de Impuestos Internos” (Tax Authority) before registering the property transfer, by virtue of de “Eficiencia Recaudatoria” Law No. 173-07 dated July 17th, 2007.
If there is a difference between the property value indicated in the purchase agreement and the one estimated by the Internal Revenue Department upon valuation, the higher value will be the one considered as valid for calculation of this transfer tax.
However, Law No. 17-07 provides an exemption of this tax in cases of transfer of real estate properties acquired by means of loans with financial institutions and cooperatives, if such real estate property has a value under DOP$1,000,000.00 (adjustable upon inflation).
The property tax must be paid within the six (6) months following to the Sale and Purchase Agreement entered by the parties. Otherwise, surcharges will be applied. Surcharges amount to 10% of the sum not paid (the corresponding transfer taxes) for the first month or fraction of the month. To any additional delays the Tax authorities will charge a 4% (per month or fraction) over the 10% plus a 1.73% indemnity (per month or fraction).
Moreover, on July 10, 2009, Law 182-09 was enacted granting a tax exemption on the 2% that must be paid to record a mortgage. This exemption only applies when it is proved that a new loan/mortgage has been obtained to pay off an existing loan secured with the same land. Consequently, the former mortgage would be cancelled to record the new one, with no additional cost.
Stamp duties are required to be paid by Law 3-19 and Law 91-83 as well before registering the deed.
Time and cost: 1 day, DOP 541,532.54 (3% of property value (transfer tax))
Buyer files the property transfer request before the Title Registrar´s Office
When filing request for property registration before the Title Registrar´s Office, stamp duties are paid (Art. 13 of Law 140-2015: DOP 100 for the Notarial receipt; 30 DOP according to Law 91; and 20 DOP according to Law 33/91). Additionally, Article 42 (2) of Law 108/05 establishes a special contribution to the “Fondo de Garantía de Inmuebles Registrados” of DOP 5,000 to be paid every time a new Certificate of Title is issued after a property transaction (in practice, this Fund has not been created yet and Registrars are not requiring them). After all payments have been made and all documents are ready, the buyer will apply for registration of the property under his name at the Property Registry.
The registrar will analyze the documentation and, if everything is correct, will register the property under the name of the buyer, issue a new Certificate of Title in the name of the buyer, cancel the old Certificate and will set the date for giving the new title to the buyer.
Because of the higher workload, this procedure takes longer in Santo Domingo and Santiago than in other provinces, taking between 20 and 30 days to complete this procedure.
However, the “Ley de Registro de la Propiedad Inmobiliaria”, passed on March 2005 to replace the previous law from 1947, together with the “Reglamento General del Registro de Títulos” of September 2009, introduced changes into the system seen up to now. The registrar should take no more than 45 days to qualify the transfer.
The filed documentation shall include:
- Notarized purchase agreement (obtained in Procedure 4).
- Real estate property taxes declaration; receipt of payment; and Certification issued by the Tax Authority stating the Buyer is up to date on the payment of taxes on the real estate property (obtained in Procedure 5).
- Payment of stamp duties (completed in this procedure).
- Copy of identity documents for seller and buyer (such documents may vary whether seller and buyer are natural persons or companies).
- Copies of their Mercantile Registration Certificate (“Certificado de Registro Mercantil”) issued by the corresponding Chamber of Commerce, and
- Certificate of registration at the National Taxpayers Registry (“RNC”) issued by the Dirección General de Impuestos Internos (the Tax Authority)
- Reliable proof of payment of purchase price in virtue of the Law No. 155-17 against money laundering and financing of terrorism and the Decree No. 408-17.
- If the value of the property is greater than (DOP$1,000,000.00) the documentation shall include the payment receipts for the exact amount established in the contract.
It should also be noted that the Buyer is also required to file the original copy of the Title Certificate. Furthermore, if either Buyer and/or Seller are companies or legal entities, the authorities will require evidence of the corporate approval of the transaction (i.e. minutes of the meeting of the corporate body that has authorized the purchase/sale). Another relevant point is that if the Buyer and/or Seller are foreigners, they must present two different copy of their identity documents: their passport and any official identification from their country of origin.
The land registry operates with the Torrens title system and is being digitized since 2005. All new transactions are completed digitally, but all titles created before 2005 are not digitized yet. The registry has consultation room units (“Departamento de sala de consultas”) where the registry’s electronic database is available.
Time and cost: 25 days, DOP 5,170
- DOP 100 Notarial receipt (Law 140/15)
- Stamp duties of 50 DOP (Law 91/83)
- DOP 20 (Law 33/91)
- DOP 5,000 for the Guarantee Fund (Art. 43 (3) of Law 108-05)