DOMINICAN REPUBLIC Law and Practice Contributed by: Fabio Guzmán Ariza, Julio Brea Guzmán, Alfredo Guzmán Saladín and César Calderón, Guzmán Ariza
providing virtual tours. At the same time, due to the fast-paced nature of the business, instant communi - cation tools and social media have also had a signifi - cant impact. There is still room for improvement in the way big data is being used by the industry, but this will likely change as AI-powered customer relationship management and listings become more prevalent. There are also high expectations of the 5G network, to which the president has given priority, as this will influence real estate development, from the way existing structures are used, to the way in which new structures will be integrated into the internet of things. Smart buildings have been the standard for new con - structions in the country for some time now. In addition, the expectation is that as blockchain tech - nology becomes more mainstream, it will permeate the industry, having been touted as a far more secure and transparent way to conduct transactions. 1.3 Proposals for Reform The Dominican Republic has been improving the legal framework to make the buying and selling of prop - erty more straightforward and secure. These efforts include streamlining the process for verifying prop - erty’s title status, as well as improving transparency. Regarding government policies in 2026, areas of focus include further development of infrastructure, enhanc - ing tourism facilities and continuing to improve the legal framework for property transactions. The government could not obtain the consensus for the comprehensive fiscal reform it had planned for the second half of 2024, so all taxes related to property purchase and tenancy remain the same. 2. Sale and Purchase 2.1 Categories of Property Rights Dominican real estate law recognises the following
• usufruct; • easements; • betterments; • leases;
• condominium regimes; and • privileges and mortgages. It does not recognise co-operative ownership arrange - ments or other occupancy interests. 2.2 Laws Applicable to Transfer of Title Registration rules are established by the General Director of the Registries of Title and are applicable nationwide. The Dominican Civil Code states that buy - ers pay all the fees, expenses and taxes required for conveyances, unless agreed otherwise by the parties. 2.3 Effecting Lawful and Proper Transfer of Title The legal requirements for recording conveyances are the following: • deed of sale (sales contract), authenticated by a Dominican notary; • certificate of title, issued to the owner by the Reg - istry of Title – a completely different document from the deed of sale, which serves as the only proof of ownership; • certification showing that the seller is up to date with its property taxes; • a receipt attesting to the payment of the real estate transfer taxes (currently 3% of the government- appraised value of the property) – the buyer is exempt from this tax in some cases (eg, first purchases in certain tourism projects and low-cost housing acquired with a bank loan); • a copy of the identity card or passport of the parties, or tax card if a legal entity – non-resident foreigners need to provide an additional identity card from their country of origin in addition to their passports; and • a copy of evidence of the purchase price or mort - gage payment through a non-cash method, for operations involving more than DOP1 million (about USD16,858). Registration rules are established by the General Director of the Registries of Title and are applicable
interests in real estate: • absolute ownership;
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