A proper due diligence is a must if you don´t want to find out later that the property had a developer or construction lien against it, the land was not authorized to be sold, real estate fraud, or a long-lost relative making a claim on the land. Take the proper steps to prevent this situation from happening to you.
In some cases, real estate agents or sellers will pressure a buyer into an accelerated closing process without doing the proper due diligence. Performing due diligence ensures you do not lose possession or title to your property. Whether you are an investor purchasing real estate, and even more as an expat living in D.R., make sure you retain a reputable real estate lawyer in the Dominican Republic to represent you.
Due Diligence and Research Checklist Essentials:
Check the legal status of the property for any liens or encumbrances.
Check if the property has any taxes due (IPI).
Check if the plot is approved by the government (land demarcation).
Verify at the Title Registry Office all the files regarding the property to verify if there is any dispute over the property.
If the seller is a corporation, review the corporate documentation including the bylaws, the resolution authorizing the sale, and the certificate of good standing.
Verify if the seller is up to date with the taxes in the Internal Revenue Office.
Check if the property has any utility bill or HOA fee pending.
Confirm if the seller is in legal possession of the property
Buying real estate in Dominican Republic can be a challenging endeavor, but with the right real estate attorney by your side, it is a safe and secure investment.