Dominican Republic Info
Joined: 14 Nov 2006
Posts: 17
Home Country: dominicanrep
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 Posted: Thu Nov 16, 2006 4:24 am Post subject: HOUSING IN DOMINICAN REPUBLIC |
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HOUSING IN DOMINICAN REPUBLIC
RENTING PROPERTY
If you intend to rent a property in the Dominican Republic, it is advisable to start searching well in advance, to see and compare the different offers that exist in the market, and to reserve as soon as you find something suitable, since rental properties have much demand.
Rental prices will depend on the area, distribution, whether it is furnished or not, and of course the size of the property.
Within the most common requirements to rent a building there are:
a) To present a guarantor who commits himself to cover any debt in case the tenant does not pay.
b) To sign a rental contract, which will stipulate:
- The price decided between the tenant and the proprietor or administrator of the building.
- Duration of the contract.
- The sum of money that is given in deposit.
- Details of the tenant, proprietor or administrator of the building and the guarantor.
A decree exists In Dominican Republic since 1948 on control of house rentals and oustings, that it is very clear as regards the rights and duties that the tenant has, and specifies in its article 2 that without the written consent of the tenant, it is absolutely prohibited for a landlord to increase the rent over the amount that at the moment is being paid for that reason, unless he is authorized by a resolution of the Bureau of control of house rentals and oustings. It also establishes that the landlord cannot demand a tenant to leave a property arbitrarily.
BUYING PROPERTY
At the present time real estate operations are regulated by the real estate registry law of 2005 that intends to regulate and adjust all the property rights, as well as the liens and other charges to the property.
The title certificate constitutes the document par excellence to prove the right of property from the seller to the buyer.
In a transaction, the following things are required:
1.- Seller and buyer must appear before a Notary to subscribe a transaction contract that will contain the legal description of the building to be sold, the sale price and any other condition of the sale.
2.- The transaction contract will have to be presented to the local branch of the Internal Revenue Service, in order to pay the transfer taxes that consist of 4,4% of the market value of the building, distributed in the following way:
a) 3% as tax on real estate transfer (Law 288-04)
b) 1,3% of taxes on documents (Law 835-45). More precisely: RD $232 for the first RD $20,000 and RD $13,000 for the rest.
c) Minor expenses by diverse concepts: stamps, check certification, taxes on checks, gratuities etc.
It should be emphasized that taxes are calculated on the market value of the transferred building (Art. 288-04) as assessed by an appraisal conducted by governmental authorities and not on the price stipulated in the price of transaction. |
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