Buying a House in Puerto Plata: Costs, Taxes, and Legal Requirements

Step 2: Engage Your Attorney and Begin Due Diligence

Before any money changes hands beyond a small reservation fee (if applicable), your attorney begins the due diligence process. This includes:

• A full title search through the Registro de Títulos (title registry)
• Verification of property taxes paid and no outstanding debts
• Confirmation of the seller's legal identity and authority to sell
• Review of any HOA obligations, if the property is in a gated community
• Assessment of zoning and permitted land use

This step can take two to four weeks for a straightforward property. Do not rush it.

Step 3: Sign the Purchase Agreement and Pay the Deposit

Once due diligence is complete and your attorney is satisfied, a formal purchase agreement (compromiso de compraventa) is signed by both parties. The buyer typically pays a deposit of ten percent of the purchase price at this point, held in escrow at a reputable Dominican bank.

Never wire funds directly to the seller without escrow protection. Use Banco Popular or another established institution for escrow services.

Step 4: Complete Final Payment and Prepare for Closing

The remaining balance of the purchase price, plus all closing costs, is transferred through the agreed escrow mechanism on or before the closing date. Your attorney prepares the final deed of sale (contrato de compraventa) for notarization.

Step 5: Title Transfer and Registry

After the deed is notarized, your attorney submits the documentation to the Registro de Títulos. This office officially records the transfer of ownership and issues a new Certificado de Título in your name. Your ownership is now legally recognized and state-guaranteed. This registration step typically takes two to six weeks after the final closing.

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