DOMINICAN REPUBLIC Law and Practice Contributed by: Alfredo Guzmán Saladín, Fabio Guzmán Ariza and Julio Brea Guzmán, Guzmán Ariza
Priority among different interested parties can be contractually reordered. 2.5 Typical Representations and Warranties The Dominican Civil Code establishes that the seller has two main obligations: (i) the delivery of the thing that is the object of the sale; and (ii) guaranteeing the object of the sale. The first obligation is fairly straightforward, as the seller fulfils its obligation with the delivery of the keys or the delivery of the title that protects the ownership of the real estate property. As for guaranteeing the object of the sale, this involves (i) the peaceful possession of the object, and (ii) ensuring the absence if redhibitory (ie, hidden) defects. Although there are several stat - utes of limitation prescribed by law, the parties are also free to determine the period of enforce - ability of these obligations. The typical cap is between 60 and 90 days, which gives the buyer enough time to carry out the corresponding procedures to transfer own - ership of the property into their name. The sale contract must state the agreed period and the release in favour of the seller upon its expiration. Warranties typically specify that: • the property is registered to the seller and is of the dimensions mentioned in the title; • there are no overlapping parcels; • there are no liens, mortgages or third-party registered rights; • the conveyance will not be affected by any tax liabilities; • the seller will have to provide any documen - tation and sign any additional sets of docu -
ments required for the final conveyance of the title to take place; and • all liabilities, including utility bills and con - tractors’ fees, will be paid up to the date of closing. The warranties are provided both in relation to the property and to the shares of the holding entity being purchased, if that is the case. 2.6 Important Areas of Law for Investors Any investor who wishes to participate in the real estate market of the Dominican Republic should consider the impact on their investments of tax law, real estate law, environmental legislation and administrative law for licences, planning and the registration of the title of ownership before making a purchase. 2.7 Soil Pollution or Environmental Contamination Issues of environmental clean-ups in real estate transactions are still very rare in the Dominican Republic. So far, this has been a problem only in the mining sector. Therefore, there are no gen - eral covenants in use. Of course, the parties to a contract are free to insert mutually agreed terms regarding long-term environmental liability and indemnity issues. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law All planning and land use matters are handled by municipalities, the Ministry of Tourism (in tourist areas) and the Ministry of Environment and Natural Resources. The municipalities and the Ministry of Tourism establish the general rules regarding use (eg, residential, commercial, industrial, mixed, density, maximum height). Any construction or development that may affect the environment must also be approved by the Min - istry of Environment and Natural Resources.
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