Understanding these steps is essential to avoid misunderstandings and unnecessary risk.
The process typically begins with an offer or letter of intent, which outlines the commercial terms of the transaction. While not always legally binding, it sets expectations and serves as the basis for drafting the Promise of Sale.
The Promise of Sale (Promesa de Venta) is a binding contract under Dominican law. It establishes the purchase price, payment schedule, conditions precedent, due diligence period, penalties, and closing obligations. This agreement is where buyer protections are negotiated and formalized.
Following execution of the Promise of Sale, the buyer typically deposits funds into escrow. While escrow is not mandatory by law, it is widely considered best practice, especially in transactions involving foreign buyers or off-plan developments.
During the due diligence period, legal verification is conducted. Once all conditions are satisfied, the parties proceed to closing, where the definitive deed of sale is executed before a Dominican notary. Transfer taxes are paid, and the transaction is submitted to the Title Registry for issuance of the new Title Certificate.
Each of these steps serves a legal purpose. Skipping or compressing them often leads to disputes, delays, or loss of leverage.
