Buying Real Estate in The Dominican Republic? Avoid these Scams! (2024)
Thinking of buying real estate in The Dominican Republic? If so, you need to be aware of the potential real estate scams that sometimes happen in The Dominican Republic if a buyer is not properly forewarned and prepared.
How to Avoid Real Estate Scams in The Dominican Republic:
1). Inexperienced Real Estate Agents:
At this time the real estate market in The Dominican Republic is unregulated which means that anyone can step off an aircraft here and become a real estate agent. This obviously creates an issue whereby people with little to no knowledge of the country or legal system, can present themselves (and sometimes quite convincingly), as a real estate professional. It is of utmost importance to check the following and do your due diligence with any potential agent.
- How many years have they been in The Dominican Republic
- Are they working here legally? (do they possess a Dominican cedula and residency card?)
- Do they speak Spanish?
- How well do they know the local area, communities and projects?
- Ask around or go online to verify their reputation and track record
- Do they have any kind of formal real estate education?
2). Poorly Managed Pre-construction Projects:
Classy 3D renderings, glossy brochures, websites and unbelievable financial terms aren’t always what they appear to be, and it is important that you proceed with cautions and do some research.
- Who is the developer? Check their reputation and do your due diligence!
- Has the developer fully completed a project previously? If they have, check it out and ask questions, if they haven’t, do your homework.
- Check online in local groups or forums for feedback regarding the project.
- If you do wish to enter into a contract, always check the small print and seek advice from a reputable lawyer or real estate professional before moving forward.
- Don’t be blind sided by guaranteed rental returns, are you familiar with gross and net rental returns?
Ensure any property you are considering buying has a clean title and deslinde:
- Verification of the validity of a title can be done through the Title Registry Office or with the help of a reputable real estate agent or lawyer.
- What is a Deslinde? A Deslinde is the legal procedure whereby a portion of land is segregated and measured by a licensed surveyor which is supervised by the courts and guaranteed by a definite title. Recorded property rights are not possible without a deslinde.
Legal Representation:
- Don’t be pushed or strong armed into using a particular lawyer or legal company. If you are feeling pressured in any way, it might be a good idea to take a step back.
- Ask around or check online groups or forums in order to make an informed decision.
Making an Offer:
- When making an offer on a property, be sure that there are no grey areas within the written offer e.g. inaccurate claims regarding guaranteed returns or hefty non refundable deposits.
What’s the Answer?
The reality is that there are many reputable real estate agents, lawyers and developers here in The Dominican Republic. The bottom line is to take your time and to find the right team on the ground that has knowledge, experience and a proven track record. In conclusion, the answer is simple, do your due dilligence and find a great and experienced realtor to lead you seamlessly through the entire process of buying real estate in The Dominican Republic and the rest will fall into place.
DR Property Guys has combined over 50 years of living and doing business here in The Dominican Republic and are real estate specialists across the north coast. For more Dominican Republic real estate videos and lifestyle content, please visit our YouTube Channel and please don’t forget to hit the subscribe button.
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