Navigating the home purchase closing process in Punta Cana is the final, exciting step to securing your piece of paradise. While many elements are similar to buying property elsewhere, the Dominican Republic has unique procedures and legal norms that can be challenging for international buyers. In my decade of guiding clients through this process, I’ve learned that a successful closing is all about preparation and expert guidance.
This guide will walk you through the key stages, providing the insider knowledge you need for a seamless and secure transaction.
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The Most Important Player in Your Closing: The Abogado
Before we dive into the steps, it’s crucial to understand this: in the Dominican Republic, the closing process is managed by your lawyer (abogado), not just a title company. Your real estate agent works hand-in-hand with your lawyer to ensure every detail is perfect. Hiring a reputable, independent real estate attorney is non-negotiable.
Key Steps in the Home Purchase Closing Process in Punta Cana
1. Conducting the Final Walkthrough
Never skip this step. This is your last opportunity to inspect the property before the final signing. Especially if you’re an international buyer who hasn’t seen the property in weeks, this is critical.
- Check for any new damages.
- Confirm that all agreed-upon repairs have been completed.
- Verify that all included appliances and furnishings (inclusiones) are present and in working order.
If anything is amiss, your agent must address it with the seller before you proceed to the lawyer’s office.
2. Organizing Your Final Funds
Preparation is key. Your lawyer will provide a final settlement statement detailing the exact amount needed for closing.
- Confirm International Wire Details: Double-check the receiving bank information (SWIFT code, account numbers) with your lawyer’s office.
- Allow Ample Time: International wire transfers can take several days. Initiate the transfer well in advance of the closing date to avoid delays.
- Avoid Financial Changes: Just like in any country, avoid opening new lines of credit or making major purchases that could affect your mortgage approval if you are financing.
3. Understanding Closing Costs in the Dominican Republic
This is where local expertise is vital. Typical closing costs include:
- Property Transfer Tax: A 3% tax on the property’s assessed value.
- Legal Fees: Typically 1% of the purchase price for your attorney’s services.
- The Confotur Advantage: A tip I always give my clients is to prioritize properties under the Confotur Law. This can grant you a 15-year exemption from the 3% transfer tax, saving you a significant amount of money.
4. Signing the Final Documents (The Acto de Venta)
On closing day, you will meet at your lawyer’s office to sign the final Deed of Sale, known as the Acto de Venta.
- Read Carefully: Your lawyer will walk you through the document. Don’t hesitate to ask questions.
- Official Transfer: Once the Acto de Venta is signed by both parties and notarized, you are the official owner of the property. Congratulations! Your lawyer will then handle the process of registering the new title in your name at the Title Registry Office.
Frequently Asked Questions (FAQs)
How long does the closing process take in Punta Cana?
Typically, the process takes 30 to 60 days from the signing of the Promise of Sale agreement. This allows your attorney sufficient time for thorough due diligence on the property title.
What are the main closing costs, and who pays them?
The buyer is responsible for closing costs, which primarily consist of the 3% transfer tax and approximately 1% in legal fees. However, these can be negotiated, and properties under the Confotur law are exempt from the transfer tax.
Do I really need a real estate attorney for closing?
Yes, 100%. It is absolutely essential and non-negotiable. A real estate agent cannot provide legal advice. Your attorney is responsible for verifying the property title is clean, drafting the legal contracts, and ensuring your rights are protected throughout the entire transaction.
Your Smooth Path to Ownership
The home purchase closing process in Punta Cana doesn’t have to be stressful. With a professional real estate agent and a reputable attorney on your side, you can navigate the final steps with confidence, ready to receive the keys to your new home in paradise.
If you’re ready to begin your journey, contact our team at realtor.international. We’ll connect you with the experts you need for a secure and successful purchase.
