The sale contract in real estate.
When you have already agreed on the price, the form of payment and the delivery of the property and whether or not they have signed a previous contract, or what is also known as a promise of sale contract, you must sign the final sale contract or what is the same the contract of sale in real estate
In the event that you do not have the resources for a full payment or the property cannot be delivered, because it is under construction, then a promise of sale or pre-contract agreement would be made, so as not to abound much here , that will be in another post, let’s go back to the sale contract, it is a document that has the purpose of transferring the right of ownership over the property sold from the owner to the buyer, that is, it is the legal document that allows registering a property in the buyer’s name and excluding it from the seller’s assets . In other words, this contract is the one that will allow you to transfer the ownership of your assets in case of sale or place the property in your name in case of purchase.
The sale contract can also be subject to payment terms, so that the total price of the real estate is not paid immediately. For this there are several modalities and the Dominican legislation provides for the registration of privileges, of which I will talk later about what are the Registration Privileges
In the event that the purchase of the property is through a mortgage, it is replaced by a contract called “Tripartito ̈ referring to the 3 parties involved in the transaction and must bear the signature of the seller, buyer and the financial institution or person who I will lend you the money to buy the property.
Once the payments have been agreed and / or settled and the contract of sale has been signed, it must be deposited with the Local Administration of the General Directorate of Internal Taxes, in order to request the appraisal of the property purchased and determine the amount of taxes to pay for the tax. transfer to place the property in the name of the buyer.
The most common is that in the Dominican Republic, two contracts are signed: the promise of sale or conditional sale and the final sale, either to agree to installment payments, get information and documentation of the property involved or for availability delivery of the same.
Remember, before acquiring a property or signing a contract, consult your real estate advisor and your trusted lawyer, ask them for the previous verifications required in real estate operations, and most importantly, and do not sign a sale contract without first checking that the seller of the property is up to date in the fulfillment of its tax obligations such as the IPI, you can check in my previous post about the IPI if you are curious.