Key takeaways
- The promise of sale is the binding contract; the deed executes it.
- Deposits should be held in escrow against milestones, never released on promises.
- Any DGII-assessed transfer tax — generally 3% of taxable property value unless a documented exemption applies — must be addressed before the registry will issue a new title.
- A purchase is not finished until the Certificate of Title issues in your name.
- The closing structure is where diligence findings get priced.
Buyers focus on the property and lawyers focus on the title, but the mechanism that actually protects a purchase is the closing structure — the sequence in which money moves against conditions being satisfied. A clean title with a badly structured closing is still a risky transaction.
The promise of sale is the real contract
Dominican practice runs through a promise of sale (promesa de venta) followed by a definitive deed. The promise is where everything is decided: price and payment schedule, the condition of the title, what happens if diligence uncovers a problem, who bears which cost, the closing date and the consequences of delay on either side.
The definitive deed largely executes what the promise already settled. This is why signing a promise prepared by the seller’s side without review is the single riskiest moment in a Dominican purchase — by the time a lawyer sees it, the negotiating position may already be gone.
What escrow actually does
Escrow means funds are held by a neutral holder and released only when defined conditions are met. In practice we tie releases to milestones that matter: clean title certification from the Registro de Títulos, resolution of any lien or annotation, a completed deslinde where the parcel is not individualised, a current tax and maintenance status, and finally the transfer and registration itself.
The discipline is simple to state and frequently abandoned under pressure: money moves when a condition is evidenced, not when it is promised. Deposits paid directly to a seller ahead of diligence are the most common way foreign buyers lose money here, and the loss is usually recoverable only through litigation.
Findings become terms
Diligence rarely produces a clean sheet, and it does not need to. What matters is that each finding becomes a term. Unpaid IPI or condominium arrears become a retention from the price or a condition of closing. An incomplete deslinde becomes an allocated cost and a timetable. A structure without permits becomes a price adjustment or a walk-away right. This is exactly the exercise described in our property purchase guide, and the closing is where it is given effect.
The transfer itself
At closing the deed is signed and notarised, and transfer tax—generally stated by DGII as 3% of the taxable property value—is settled unless DGII recognizes a documented exemption. The file is then submitted so the Registro de Títulos can cancel the seller’s title and issue a new Certificate of Title in the buyer’s name. A CONFOTUR project label alone does not establish an exemption: verify the complete resolution, seller, parcel, phase, unit, transfer type, effective dates, buyer structure, Law 30-26 and current DGII treatment.
Until the new certificate issues, the transaction is incomplete. Buyers who take possession, renovate and move in while the registration sits unfinished are exposed in a way they usually do not realise.
Buying from abroad
Many foreign purchases can be completed without the buyer present through a transaction-specific power of attorney. The instrument should follow the authentication chain required for its issuing country — apostille where the Hague Convention applies, otherwise consular legalization — plus any required certified Spanish translation. Its scope and acceptance should be confirmed with the notary, registry, bank and other receiving parties; a general power may be insufficient.
Our real estate desk structures the promise, holds or supervises escrow, and carries the file through to the issued title.
Frequently asked questions
Should I pay a deposit before title diligence is complete?
Deposits should sit in escrow behind conditions rather than being released to a seller in advance. Money paid directly before diligence is the most common way foreign buyers lose funds, and recovery usually means litigation.
What is the promise of sale?
The binding contract that decides price, payment schedule, title conditions, cost allocation and what happens if diligence uncovers a problem. The definitive deed largely executes what the promise already settled.
When does the property actually become mine?
When the Registro de Titulos cancels the seller’s title and issues a new Certificate of Title in your name. Taking possession before registration completes leaves you exposed.
Can I buy without travelling to the Dominican Republic?
Often, through a power of attorney drafted for the specific transaction and completed through the authentication chain required for its issuing country—apostille when applicable, otherwise consular legalization—plus any required translation. Because a general power may be refused and authentication takes time, that document can set the closing date.