BAVARO – PUNTA CANA REAL ESTATE INVESTOR’S GUIDE

The Bavaro-Punta Cana area, which generates about 20% of the

national gross product, is the fastest growing area in the Dominican
Republic, and with close to 30,000 hotel rooms, it’s tourism activity is
one of the largest in the Caribbean. Also, more than 50% of all flights
to the Dominican Republic arrive to its international airport, which now
has direct flights to many important cities around the world, including
New York, Miami, Philladelphia and Chicago, in the USA, and Madrid,
Paris, London and Amsterdam in Europe.

All of this activity has generated a significant growth in terms of Real

Estate Development. What was a barely populated area 15 years ago,
with no electrical power generating system and no gas stations, has
changed into a vibrant community with several world-class golf
courses and luxury gated residential areas, including the “Trump
Farallon Estates at Cap Cana”.

What to Look For

While nowadays there is a wide variety of Real Estate inventory to

choose from, because of the absence of adequate regulations not all
areas are the same in terms of development and facilities, and
deciding where to own property requires a basic knowledge of its
different “towns” and residential projects.

Depending on your particular needs, you might find the more

organized and peaceful “Punta Cana” area more suitable, as opposed
to the more active and busy lifestyle of “El Cortesito”. If looking for
something in between, then “Bavaro” may be the right choice for you.
There is also Uvero Alto, Cabeza de Toro, Macao and a few others.

Personally, we are inclined most of the times to recommend gated,

closed access communities. This because all basic services are, in
most cases, provided in a fashion that our visitors are accustomed to
back home. Water, private security, garbage collection, etc. are
available in ways different to that of non-gated projects. On the other
hand, because this projects are well planned and have done their own
land surveys, and strictly enforce their own architectural regulations,
chances of facing property related legal claims, are almost non-
existent.

Also, whether you are a water sports or golf fan, for example, will
have and impact on your choices. Many of these communities have
access to a beach area, either of their own, or belonging to a hotel
facility that is the parent company of the residential area. Many of
them also sport one or more golf courses. A few will provide beach
and oceanfront properties.
 BAVARO – PUNTA CANA REAL ESTATE INVESTOR’S GUIDE

Always let your Real Estate agent know what is important to you
regarding this issues since, for obvious reasons, this will have a
significant impact in your ability to enjoy and profit from your
investment, and will give you as well peace of mind when you return
back home.

The Units

The available offer consists of mostly one, two and three bedroom
apartments and, for the villas, two, three, four and more bedrooms.
There is a wide range of prices, views and amenities. Beachfront and
golf course view are among the most popular, but other lesser-priced
units are available as well and also provide reasonable value.

Local financing for foreigners is obtainable with Dominican banks in

the currency of your choice; Pesos, Dollars or Euros. Some of the
larger projects also offer in-house short term financing.

Services

Management services are available as well for those willing to rent

their properties while away, or simply wish to forget about the upkeep
of their units.

Electricity, unlike the rest of the country, is privately generated and is

always available.

Banks, lawyers, private hospitals and excellent private bilingual

schools are also available in most areas.
What You Need To Know About a Property’s Legal Status

As of February 2005, the Dominican Republic’s Real Estate property’s affairs are regulated by a new law,
which further protects the rights of Real Estate owners.

When buying a property in our country, there are documents that will serve as proof of ownership, and
others that will validate the seller’s claims about such ownership and the authenticity of his ownership
documents.

The “Certificado de Titulo” is the document issued by the “Registro de Titulos de Higuey” the government
agency with jurisdiction on the Bavaro-Punta Cana area, that will serve as proof of ownership.
Furthermore, it is customary for banks and lawyers alike to request a “Certificacion de Cargas y
Gravamenes”, issued by the same agency, that will provide feedback about the authenticity of such
“Certificado de Titulo” and will list any mortgages, liens, claims, etc. about that particular piece of
property. It is imperative that, when buying Real Estate here, one is provided with such a certificate
before making payment in full. Although this can be obtained by anyone going to the “Registro de
Titulos”, it is advisable to use a professional legal office to assist you in this matter.
 BAVARO – PUNTA CANA REAL ESTATE INVESTOR’S GUIDE

Land Survey

The “Deslinde” or land survey will provide the property owner with the exact geographical location of
his/her Real Estate. This is the job of the “Agrimensor” or surveyor, and no property ownership transfer
can be registered without both the “Certificado de Titulo” and the “Deslinde” being deposited together at
the office of the “Registro de Titulos” (some exceptions apply).

Real Estate Taxes In The Dominican Republic

To legally transfer ownership of a Real Estate property, a tax payment of 3% of the property value is to
be paid before requesting the transfer. Also other minor stamp taxes are due. Receipt of tax payment
should accompany the “Certificado de Titulo”, The “Deslinde” and the “Sales Agreement” and be deposited
in the office of the “Registro de Titulos” for actual change of ownership registration to take place. Until
after this step is taken, the seller remains as the registered owner the property.

An annual property tax of 1% for properties exceeding RD$5,000,000.00 is to be paid to the local
“Impuestos Internos” office, but only of the amount in excess of the RD$5,000,000.00. That means that if
your property is worth RD$7,000,000.00 you only pay taxes for RD$2,000,000.00. It is important to
obtain a “Certificacion de Impuestos Internos” stating if the property is subject to any taxes, and, if this is
the case, if there are any overdue, both because of the relevance of this information for you personally,
and because this certification is also to be deposited with all documents mentioned above when
transferring ownership of a Real Estate Property.

Other Important Issues

Many Real Estate Properties have a corporation or company as the registered owner. While this represents
and advantage when paying ownership transfer taxes, among other things, it is important to keep in mind
that a written authorization form the corporation’s duly authorized officers will be required by the
“Registro de Titulos” in order to process such transfer.

In some projects you will qualify for a property transfer tax exemption and a 10 year property tax
waiver ,as well as other tax facilities. This depends on whether such project is benefited by the “Ley de
Incentivo Turistico 158-01” (Turism incentive law).

Also, when buying form a married person, the other spouse should also sign the sales contract even if
his/her name is not included in the “Certificado de Titulo” as an owner. Not doing so may render such
sale invalid.

Title insurance and escrow services are available from well known and reputable USA based title
companies.

About Us

We are a family operated business, with more that twelve years

experience in the Bavaro-Punta Cana area and more than twenty in
the Real estate industry, that takes pride in its high ethical standards.
We are fully committed to provide our clients with a first class
experience when looking for a Real Estate property. You should always
expect a professional, courteous and enjoyable treatment from us. Our
firm is a founder member of AEI BAVARO-PUNTA CANA, the Bavaro-
Punta Cana Real Estate Brokers Association.

IMPORTANT!

We believe people don’t want to get involved in reading a long guide,

so that’s why we didn’t get into much detail but, if you think we can be
of any assistance to you or you want to go deeper into any of the
 BAVARO – PUNTA CANA REAL ESTATE INVESTOR’S GUIDE

issues above, please contact us at your convenience, and we’ll be

more that glad to provide you with any advise or information you
might need, and help you in making the right decision for you.

Disclaimer

All information in this guide is deemed reliable but is not guaranteed and is subject to change. The
information contained herein constitutes only part of the legal aspects related to the purchase, transfer
and ownership of Real estate in the Dominican Republic. For proper legal counsel regarding Real Estate
ownership and any other subject covered in this guide please contact a duly authorized attorney.