Buying real estate in the Dominican Republic can be an excellent investment and a life-enhancing decision—but it also comes with potential pitfalls. Being aware of the most common mistakes can help you avoid setbacks and ensure a smooth property transaction.
1. Not Using a Qualified Local Attorney
Many buyers rely solely on agents or developers without engaging an independent attorney. This can be risky.
- Always hire a reputable real estate lawyer who understands local property laws.
- Ensure all contracts and titles are properly reviewed before signing.
2. Skipping Title Verification
Some properties may have unclear or contested titles.
- Make sure the property is titled (titulada) and properly registered.
- Avoid properties sold with “rights of possession” only.
3. Not Understanding the True Costs
Beyond the purchase price, buyers should plan for:
- Closing costs (approx. 3–5%)
- Property transfer tax
- Legal and notary fees
- Ongoing maintenance or HOA fees
4. Overlooking the Importance of Location
It’s easy to fall in love with a view: but don’t ignore practical concerns:
- Accessibility to shops, medical care and airports
- Infrastructure (roads, water, internet)
- Flood zones or seasonal accessibility
5. Rushing the Process
Buying property is a big decision. Common signs of rushing:
- Buying on vacation without due diligence
- Skipping an inspection or appraisal
- Not asking about resale value or rental demand
- Not asking about last home-owners-associations protocols
6. Misunderstanding Rental Potential
Just because it’s near the beach doesn’t mean it rents well.
- Research local tourism patterns
- Know if short-term rentals are allowed in the area/object
- Set realistic ROI expectations
With the right guidance and due diligence, buying property in the Dominican Republic can be a safe and rewarding experience. Avoiding these common mistakes will help protect your investment and set you up for long-term success.
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