The Process of Buying Property in the Dominican Republic

Buying property in the Dominican Republic is a straightforward and secure process where foreigners have the same rights to own property as citizens. For a pre-construction residence at Makai, the process follows a clear path from reservation to receiving your title, with key legal protections in place for the buyer.

What is the step-by-step process for buying a condo at Makai?

Purchasing a pre-construction residence like those at Makai involves a structured timeline designed to protect both buyer and developer. The process is overseen by your independent attorney and authenticated by a Dominican notary, culminating in you holding a clear title to your property. While every purchase has its own details, the main stages are consistent.

1. 1. Reservation and Due Diligence
   The first step is to select your residence from our available inventory, which includes 17 different layouts. You then sign a simple reservation agreement to take the unit off the market. This gives your attorney time to perform due diligence, confirming the developer's title to the land and the project's permits, including its CONFOTUR status.
2. 2. Promise of Sale (Promesa de Venta)
   Once due diligence is complete, you and the developer, Duna Development, sign a notarized 'Promise of Sale'. This is the main binding contract for your purchase. It details the specific property, the price, the construction schedule, and the obligations of both parties. This document is registered at the Title Registry Office.
3. 3. Construction Period
   During this phase, Duna Development constructs the Makai Residences. The project is being built in two phases, with the first delivering in Q2 2028 and the second in Q2 2029. Your attorney will keep you informed of progress.
4. 4. Delivery and Title Transfer
   Upon completion of your residence, a final 'Deed of Sale' (Contrato de Venta) is signed before a notary. This document is used to transfer the title to your name. Your attorney will register the deed with the Title Registry Office, and you will receive the official Certificate of Title (Certificado de Título) for your Makai residence.

Who are the independent parties that protect my interests?

The Dominican legal system provides a robust framework for real estate transactions. Several key professionals, independent of the developer, are involved to ensure your purchase is secure and your rights are protected. It is standard practice for a buyer to retain their own legal counsel.

What closing costs and taxes should I anticipate?

One of the significant advantages of purchasing at Makai is its registration under CONFOTUR (Law 158-01), which provides major tax exemptions at closing and beyond. However, there are still standard costs associated with any property transaction.

• Transfer Tax: This is a 3% tax levied on the value of the property, payable by the buyer. However, as a first buyer from the developer you are exempt from this tax under the project's CONFOTUR status — the exemption is for first acquirers and does not pass to a resale buyer.
• Annual Property Tax (IPI): This is a 1% annual tax. Crucially, it is only charged on the value of a property above an annually adjusted exempt threshold, not the full value. As a Makai owner, you also benefit from an exemption from this tax for the project's term.
• Notary & Legal Fees: These are the costs for your own legal representation and for the notary's services in authenticating documents. These fees are variable and depend on the attorney and the complexity of the transaction. Your attorney will provide you with a detailed quote for their services.
• Minor Registration Fees: There are typically small administrative fees for registering your title and other documents.

Your attorney will provide a full statement of funds required for closing, detailing all applicable costs.

Can I complete the purchase without traveling to Punta Cana?

Yes, it is common for international buyers to complete the entire purchase process remotely. This is typically done by granting a limited Power of Attorney (Poder) to your legal counsel in the Dominican Republic. This document can authorize your attorney to sign the Promise of Sale and the final Deed of Sale on your behalf.

The Power of Attorney must be drafted to your specific needs, and it must be notarized and apostilled in your home country to be legally valid in the Dominican Republic. Your attorney can guide you through this process and confirm if this is the right approach for your situation, ensuring you retain full control while enjoying the convenience of a remote closing.

How does ownership work after the purchase?

Once the title is in your name, you hold the property with the same rights and protections as a Dominican citizen. You can sell it, will it, or hold it indefinitely. The Dominican Republic permits dual citizenship, and there is no requirement to become a resident to own property. Your ownership of a Makai residence, with prices starting from $329,000, is legally secure and registered with the government. The property is sold in US dollars, providing a stable asset for international owners. The building is operated by Dolce Hotels & Resorts by Wyndham, and owners can participate in the managed rental program, but ownership of the physical residence is entirely yours.

Common questions

What is a 'Promise of Sale'?

A 'Promise of Sale' (Promesa de Venta) is a legally binding, notarized contract between a buyer and a developer for a pre-construction property. It details all terms, including the specific unit, price, and delivery timeline. Once signed, the developer is legally obligated to build and deliver the property, and the buyer is obligated to complete the purchase.

Do I need a Dominican bank account to buy property?

No, you do not need a Dominican bank account to purchase property. Transactions are typically handled in U.S. dollars via wire transfers to an escrow account or directly as instructed by your attorney for closing.

What is CONFOTUR and how does it benefit me at Makai?

CONFOTUR is the Dominican Republic's tourism incentive law (158-01). Because Makai is a registered CONFOTUR project, first buyers from the developer are exempt from the 3% property transfer tax, and the law provides a fifteen-year IPI exemption to qualifying projects. How that reaches a particular title, and for how long, is a question for your attorney. This provides significant savings at the time of purchase and for years afterward.