Understanding Punta Cana home buying terminology is the first step toward a confident and secure investment in the Dominican Republic. While the dream of owning a home here is exciting, the local real estate vocabulary can be confusing for international buyers. In my decade of experience, I’ve seen that mastering these key terms empowers my clients to navigate the process with clarity and avoid costly misunderstandings.
This glossary decodes the essential terms you’ll encounter, translating them into a clear, actionable framework for your purchase.
The Foundation: Promesa de Venta (Promise of Sale)
This is the most important document you will sign after your initial offer is accepted. It is not a simple sales agreement; it is a comprehensive, legally binding contract drafted by your attorney. It outlines every detail of the transaction: the final price, payment schedule, contingencies, default clauses, and the closing date. A meticulously drafted Promesa de Venta is the cornerstone of a secure purchase.
The Financials: Key Monetary Terms
- Down Payment & Payment Structure: Unlike a single down payment, payments are often structured. It typically starts with a Reservation Deposit (Depósito de Reserva) to take the property off the market. This is followed by a more substantial payment (e.g., 10-20%) upon signing the Promesa de Venta, with the remaining balance due at closing.
- Closing Costs: In the DR, the buyer is typically responsible for closing costs. These primarily consist of a 3% Property Transfer Tax and approximately 1% in legal fees.
- The Confotur Advantage: This is a crucial term. If a property is covered by the Confotur Law, you are exempt from the 3% transfer tax and the 1% annual property tax for 15 years. Prioritizing these properties is a key strategy for maximizing your ROI.
The Legal Safeguards: Due Diligence Terms
- Due Diligence: This is the period where your attorney (abogado) conducts a thorough investigation of the property. This is a non-negotiable step to protect your investment.
- Título (Title): Your lawyer will verify the Certificate of Title to ensure the seller is the legal owner and has the right to sell the property.
- Deslinde (Survey/Demarcation): This is a critical term. A deslinde is a government-approved survey that definitively marks the property’s boundaries and separates it from all adjoining properties. Your lawyer must confirm a proper deslinde exists to ensure a clean and transferable title.
- Home Inspection: While not legally required, we always advise our clients to hire a professional inspector. They can identify potential structural or system issues that may not be visible to the untrained eye, giving you a complete picture of the property’s condition.
Frequently Asked Questions (FAQs)
Q: What is a deslinde and why is it so important?
A: A deslinde is the official, registered survey of the property. It is crucial because, without it, you cannot get a clean title or secure financing. It protects you from future boundary disputes and is a fundamental requirement for a secure real estate transaction in the Dominican Republic.
Q: What is the difference between a reservation deposit and an earnest money deposit?
A: They are similar. The Reservation Deposit (Depósito de Reserva) is a smaller initial amount (e.g., $5,000 – $10,000) that takes the property off the market while your lawyer begins due diligence. The larger “earnest money” payment is typically made upon signing the legally binding Promesa de Venta.
Q: Can I get a mortgage in the Dominican Republic as a foreigner?
A: Yes, financing is available for foreigners from local banks, though the process can be more complex than in your home country. Many buyers also utilize developer financing for new construction projects. We can connect you with trusted local mortgage brokers.
Invest with Confidence
Navigating Punta Cana home buying terminology is simple when you have an expert team on your side. Understanding these terms is the key to unlocking a smooth, transparent, and secure path to owning your dream home in paradise.
If you’re ready to take the next step, contact us at realtor.international. We’re here to demystify the process and guide you every step of the way.
