The DR Closing Process: Step by Step

The Dominican Republic has a well-established property transfer system built on the 2005 Real Property Registry Law (Ley 108-05), which modernized and centralized the country's title registration infrastructure. For foreign buyers, understanding the sequence of events — and what each step requires — is the difference between a smooth closing and a deal that falls apart at the last moment.

Step 1: Letter of Intent (Carta de Intención)

The process begins with a non-binding letter of intent that records the agreed purchase price, estimated closing timeline, and any material conditions. No money changes hands. No legal obligations are created. The purpose is to confirm that both parties are aligned before incurring the cost of a formal title search. A LOI typically takes one to three days to agree and execute.

Step 2: Title Search (Estudio de Títulos)

This is the most important step in the entire process. Your attorney orders a full title search at the Registro de Títulos for the judicial department where the property is registered. The search verifies: who owns the property and that the seller has authority to sell; the complete chain of title from the original land grant; any registered liens, mortgages, or encumbrances; any court judgments or pending litigation affecting the property; and for beachfront properties, confirmation that no maritime zone encroachment exists. The search typically takes 5–10 business days and costs $500–800 USD.

Do not skip or rush this step under any circumstances. Sellers who push for a fast close before title search completion are a significant red flag. Any legitimate seller will understand and accept a standard due diligence period.

Step 3: CONFOTUR Verification (if applicable)

If the property claims CONFOTUR tax exemption status, your attorney must verify the certification directly with the Ministry of Tourism before any contract is signed. This is separate from the title search and adds 2–5 business days. Never take a developer's word for CONFOTUR status — the exemption has been misrepresented often enough that independent verification is essential.

Step 4: Preliminary Sales Contract (Promesa de Venta)

Once due diligence is complete and the property is confirmed clean, a formal preliminary sales contract is drafted by your attorney (or reviewed carefully if drafted by the seller's side). This contract is executed before a Dominican notary and is legally binding. The buyer deposits 10% of the purchase price into an escrow account at a licensed DR bank. The seller removes the property from the market. Key contract terms include: purchase price, closing deadline, conditions precedent, and the consequences of default for each party.

Standard default provisions: if the seller withdraws without cause, they return the deposit doubled to the buyer. If the buyer withdraws without cause, the deposit is forfeited to the seller. Both parties should understand these terms clearly before signing.

Step 5: Final Deed (Acto de Venta)

The notarized deed of sale is executed once all conditions in the preliminary contract are satisfied. The buyer transfers the remaining purchase price — typically by international wire to an escrow account — and the notary executes the deed in the presence of both parties (or their representatives, via power of attorney). Legal ownership passes at the moment of execution, not at title registration.

Costs at this stage: notary fees (approximately 1% of purchase price), transfer tax (3% — waived with valid CONFOTUR status), attorney fees (1–1.5% of purchase price if using legal representation). Budget approximately 3–5% of purchase price for total closing costs excluding CONFOTUR-exempt transactions.

Step 6: Title Registration (Registro de Títulos)

Your attorney files the executed deed at the Registro de Títulos. The registry issues a new certificado de título in the buyer's name. This process takes 30 to 90 days depending on the registry's backlog in that judicial department. Your ownership is fully valid from the date of the Acto de Venta — the registration is the administrative record of what has already legally occurred, not the event that creates ownership.

Total timeline

• Letter of Intent: 1–3 days
• Title search and due diligence: 10–15 business days
• CONFOTUR verification (if applicable): 2–5 additional business days
• Preliminary contract to final closing: typically 30–60 days
• Title registration post-closing: 30–90 days
• Total from LOI to registered title: approximately 3–5 months