By: Luis Manuel Calderón – Associate Ulises Cabrera
In order to fulfil these purposes, the user must comply with certain formalities, in spite of the consensual characteristics of some of these operations, being the main headache of the users of the Real Estate JurisdictionThe main headache for users of the Real Estate Jurisdiction, generating resistance, either due to the payment of transfer taxes, the hiring of a lawyer or the general lack of knowledge of the matter.
Many have opted for the idea of keeping their title certificates in the name of their sellers, as if they were works of art to be appreciated in their home, without realising the possible risks found in this behaviour, being affected by arrears and delays in the payment of taxes, the death of their seller, which could generate conflicts for the transfer, irregularities in the “Real Estate Transactions”, seizure of the property by creditors of the seller, among other reasons that could complicate your operation, so it is necessary to hire a specialised professional to provide constant advice, and who can react and solve any kind of unforeseen events and challenges, very common in the real estate sector.
For the time being, the main idea of this article is to inform these users of the tools they should take into account to follow for a healthy negotiation in the company of their lawyer, and thus break this barrier by taking the following recommendations:
1. Payment of transfer taxes
According to the tax law, the tax rate of the transfer payment, depending on the “Real Estate Operation“, could vary from 1% to 27%, but the important thing is, that a user only has six (06) months according to the effects of Law No. 288-04, for the payment of this tax, which could generate delays and interest. Being advised could avoid these additional expenses, hence the importance of being properly guided by a professional, and then in the company of this payment, complying with the formalities required by Law No. 288-04, and there may be favourable rules according to the law. General Directorate of Internal Taxes and there may be favourable rules according to the case, that is why it is important to be advised by a professional in this aspect.
2. Verify property charges
In the ABC of real estate law, when carrying out a transaction, it is always important to verify whether the property has a real estate charge, that is to say, that the property does not have a mortgage, a litis on registered rights, a payment order (embargo), a declaration of public utility, as well as any other encumbrance that affects the right of ownership. Therefore, every user of the Real Estate Registry should always consult and investigate before formalising an acquisition of a real estate property.
The Certification of Legal Status (which substitutes the charges and encumbrances of Law 1542) is an indispensable resource before agreeing the transfer, but in addition, it is advisable to visit the consultation room of the Real Estate Jurisdiction, in order to verify that the information reflected in the aforementioned certification coincides with that reflected in the complementary registry of the property, which is one of the tools provided by the Real Estate Registry, which keeps a history of all transactions that are registered over time with respect to a property.
The use of this tool should be carried out by a real estate due diligence specialist, as it involves technical knowledge of real estate.
3. Verify the marital status of the seller and buyer.
First: check the certificate of title and/or registration of your seller, which is one of the first things you should look at. Many people do not realise that in case the buyer or seller is married, it is important to mention the details of his spouse, since according to articles 35 and 36 of the regulations of the Registry of Titles, it establishes which are the requirements of substance and form of their rogaciones (applications), one of them, is that in case one of the parties is married, it is necessary to mention the partner of this and at a certain time to provide the marriage certificate.
It is important to determine the marital status of the parties involved, i.e. to compare the identity card of the seller and buyer, as well as to check the contents of the certificate of title and/or registration to determine, in case one of the parties is married, to include the details and signature of the spouse.
4. Verify property
The legal identity of the property is very important when drawing up the transfer documents, as without this it is not possible to register the property with the authorities. In addition, it is important to confirm that the property described in the title certificate physically matches the one shown.
5. Certification of Real Estate Ownership
It is important to point out that one of the main requirements for the Real Estate Registry is that, together with the transfer application, a certificate of real estate patrimony issued by the General Directorate of Internal Taxes, in which it is established that the seller is up to date with the tax declaration of the property and payment of the annual tax, if applicable, is deposited.
6. In case of using a passport, add a second identity document.
There is no doubt that in the Dominican Republic the identity document par excellence is the identity card, but it is important to point out that passports are documents to be used as travel instruments, but because a person does not have an identity card, the law allows the use of the passport as an identity document in real estate transactions; but in this case it implies the inclusion of an additional identity document in which an image of the seller and his signature are displayed, such as a driving licence, diplomatic accreditation card, etc.
7. Recognise which type of certificate of title your seller is holding
It is very important to point out that, in the Real Estate Registry Law, there are several types of documents that endorse the ownership of the title holder, the most frequently used and relevant ones being the title certificates and the annotated certificates. The former allows the transfer to be processed through the registry, while the latter entails a judicial process.
There are more particularities that arise in a real estate transfer operation, the above being the most relevant due to their frequent incidence in the transactions, in addition to their indispensability to achieve the registration of the transfer of the real estate.
So, in conclusion, if you are interested in a real estate transfer, whether by sale, exchange, dation in payment, donation, etc., you should consider the information provided in this article, and hire a specialised professional to assist you throughout the process. Hiring a professional for real estate transfers would avoid taking unnecessary risks, and would also prevent your investment from ending in an irreparable loss.
