Who Pays the Property Transfer Tax and Sale Deed Costs in the DR?

Two weeks before closing, the buyer and the seller had their first argument: who pays the transfer? Nobody had written it down. Each assumed it was the other's job.

This question has a practical answer in the Dominican Republic, but the rule is simple: what is not in the contract gets argued about at the worst moment.

What transferring a property involves

Moving a property into your name involves several steps, and each has a cost:

1. Deed of sale (final contract). Drafted and signed before a notary. It carries lawyer and notary fees.
2. Payment of the property transfer tax to the DGII. It is a percentage of the transaction value and must be paid to register the change.
3. Proof that property taxes are up to date, such as the IPI if it applies.
4. Registration at the Land Registry and issuance of the new certificate in your name, with its fees.

Confirm current rates and requirements with your lawyer or directly with the DGII and the Real Estate Jurisdiction, because they change.

Who usually pays what

In practice it is common for the buyer to cover the transfer tax, registration fees and their own lawyer's fees. The seller usually covers the agent's commission and delivers the property with taxes and debts up to date.

But it is negotiable. What matters is not who pays, but that both sides know before signing the promise of sale.

How to make it clear

• Include an expenses clause in the promise of sale: who pays the tax, the registration, the notary and any prior debts.
• Ask for a written estimate of each item. For the full picture, read closing costs when buying a home in the DR: who pays what.
• Set deadlines to deliver documents and sign the final deed.
• Establish what happens if someone fails to comply.

Common mistakes

• Declaring a lower value to pay less tax. It can cause problems with the DGII and with the bank.
• Signing the deed without verifying the title. See why you should verify the title before reserving.
• Not keeping the receipts for each payment.

A healthy order of steps

First verify the title and debts. Then sign the promise with the expenses clauses. Next pay each tax and get a receipt. Finally register and receive your new title.

If you are still searching, browse apartments for sale in Santo Domingo with verified agents.