Closing Costs When Buying a Home in the DR: Who Pays What

Ana and Luis had the apartment "locked in": price agreed, down payment ready, mortgage approved. Two weeks before signing, their lawyer sent an estimate with costs nobody had mentioned. It wasn't a scam. These were the closing costs, and no one had put them in the conversation.

This is one of the places where first-time buyers in the Dominican Republic stumble most often. The listing price is not the total you will pay.

What closing costs are

They are all the costs, on top of the price, needed to legally move the property into your name. They are paid around the signing date, usually in cash or by transfer, and they are not financed by the mortgage.

In practice the buyer usually covers most of them. But this is negotiable and should be written into the promise-of-sale contract, not just spoken.

The most common costs

Amounts change with the property value, the bank and the lawyer, so use this list to ask questions, not as a final figure:

• Property transfer tax (DGII): the largest item, calculated as a percentage of the transaction value. Confirm the current rate with your lawyer or directly with the DGII.
• Land Registry and Real Estate Jurisdiction fees: charges for recording the change of owner and issuing the new title certificate.
• Lawyer and notary fees: these vary, and many lawyers charge a percentage of the value.
• Property appraisal: if you buy with a mortgage, the bank requires an appraisal and the client pays for it.
• Mortgage bank costs: origination fee, the bank's legal costs and insurance tied to the loan.
• Agent commission: normally paid by the seller, but confirm it in writing.

How to build a realistic cushion

Before you fall in love with a property, ask your lawyer for a written closing-cost estimate for that specific property. A practical rule is to keep an extra cushion on top of the down payment, and not spend it on furniture or moving.

If you are still saving, also read how to save for a down payment in the Dominican Republic and what happens after mortgage pre-approval.

Questions to ask before you reserve

1. Who pays the transfer tax, the buyer or the seller, and where is it written?
2. Are the seller's property taxes and any condominium debts up to date?
3. What is the total closing-cost estimate for this property and this bank?
4. Is the agent's commission already included in the price?

Red flags

Be wary if someone says closing costs are "minimal" without giving numbers, asks for extra money outside official accounts, or pushes you to sign before you see the estimate. If it is not in writing, assume it is not agreed.

Deciding with all the numbers is part of buying with peace of mind. When you are ready to search, browse apartments for sale in Santo Domingo with verified agents.