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Verification of the boundary is a necessary control point

The boundary demarcation technically and legally delimits the plot and, in practice, is the basis for operating safely in the Registry.

Due diligence must confirm the cadastral record, the approved plans, the correspondence between the cadastral designation and the physical location, and the absence of overlaps with neighboring parcels. If the property is not demarcated or the plan is inconsistent, the risk of litigation and registration delays increases.

When the asset is subject to a horizontal property regime, the review extends to the condominium regulations, the minutes of the meeting, the common expense budget, the reserve fund, and usage restrictions.

Law 5038 on Condominiums establishes the relationship between private units and common areas; therefore, surface areas, coefficients, and common loads must be compared, and it must be verified that the construction corresponds to the approved construction. Differences between plans and actual construction require documentary correction and, if applicable, regulatory adjustments before the transfer.

From the perspective of the transmitter, capacity and legitimacy are required.

If the seller is a company, it is necessary to examine the bylaws, corporate decisions authorizing the sale, the validity of the commercial registry, and the powers of the signatories.

In all cases, the deed of sale must comply with Law 140-15 ( notarial public certification regime ), ensuring that the authentic act contains clear descriptions of the property and the terms of the transfer. When attorneys are involved, the powers of attorney must be valid and, if issued abroad, duly apostilled or legalized.

The compliance component is defined by Law 155-17 against Money Laundering and Terrorist Financing . Notaries, real estate agents, and financial institutions are obligated subjects and must implement Know Your Customer (KYC) measures, identify beneficial owners, document the legitimate origin of funds, and report unusual transactions.

Robust due diligence integrates these checks to protect the parties and avoid regulatory friction that could block registration or financing.

Due diligence in environmental and urban planning matters

Law 64-00 on the Environment and Natural Resources requires permits or licenses depending on the type of project and its impacts. The buyer must verify the existence, validity, and compliance with the property’s environmental obligations (for example, license conditions) and their compatibility with municipal land use.

If the project involves tourism, industrial projects, or projects with potential impact on natural resources, the environmental record and field inspections become crucial for the investment decision.

Mortgage and Trust

Whether the acquisition will be financed with a mortgage or executed through a trust, Law 189-11 for the Development of the Mortgage Market and Trusts becomes fully relevant . Financiers and trustees often require a package of documents (title, certification of liens, plans, policies, permits) and establish performance obligations (completing works, obtaining missing permits) that must be reflected in the contracts. Anticipating these requirements in due diligence avoids disbursement delays and onerous last-minute conditions.

Common requirements in mortgage and trust transactions:

• Updated property title free of unauthorized encumbrances.
• Certification of the legal status of the property , issued by the Registry of Titles.
• Plans approved by the National Directorate of Cadastral Measurements or the corresponding city council.
• Insurance policies on the property or project (fire, construction, civil liability, etc.).
• Current municipal, environmental, and construction permits and licenses .
• Tax documentation (ITBI payment or exemption, tax clearance).
• Contracts and technical annexes that define obligations, deadlines and guarantees.
• Bank certifications or evidence of the legitimate origin of the funds.
• Corporate authorizations (if the seller or buyer is a company).
• Commitment to complete works or address outstanding requirements before disbursement.
• Registration in the trust system or notification to the trustee , as appropriate to the type of trust (guarantee, real estate, or development).

The tax dimension is not accessory

The Real Estate Transfer Tax (ITI) is, as a general rule, 3% of the property’s value and is a requirement for registering the transfer in the name of the buyer. This scheme is articulated, among other regulations, with Article 7 of Law 173-07 , which lists the acts covered by the tax, and with operational guidelines from the tax administration.

The planning process should define those responsible for payment, the tax base, applicable exemptions, and the timeline, so that the tax documentation can be submitted to the tax closing without any problems.

Along with the registry and tax aspects, physical verification of the asset provides certainty. An on-site survey allows for validating boundaries, access, apparent easements, third-party occupations, leases, as well as the correspondence between reality and the plans.

In urban areas, it’s advisable to review alignments and setbacks; in rural areas, actual uses, rights of way, and water and energy availability. Material discrepancies should be documented and, where possible, corrected before the transfer.

The chapter on frequent risks includes: unforeseen encumbrances (mortgages, liens, precautionary annotations), environmental licenses with unmet conditions, discrepancies between plans and construction, expired or insufficient powers of attorney, and boundary disputes.

Mitigation is achieved with updated certifications shortly before closing, effective cancellations (not mere balance sheets), independent technical review, and contractual clauses that assign responsibilities and withholdings until remediation.

Safe closure of due diligence

Secure closing requires consistent documentation: authentic deed of sale, clearance of charges (or letters of discharge with cancellation guarantees), proof of payment of the Property Tax (ITBI), corresponding fees and stamps, and the complete file with the Title Registry for the issuance of the new certificate.

Traceability of the chain of ownership (at least for recent transfers) reduces the risk of hidden defects. When the transaction involves foreign documents (powers of attorney, deeds), the 1961 Hague Convention on Apostilles applies, simplifying their circulation between member states.

Good practices to increase the effectiveness of due diligence include:

Real estate due diligence isn’t just about gathering documents or verifying records; its true effectiveness depends on planning, timeliness of reviews, and coordination among the stakeholders involved. Adopting a proactive approach allows you to anticipate legal, technical, and tax contingencies that could affect the closing of the transaction.

In this sense, applying good practices ensures that the process is carried out with greater security, transparency, and efficiency, reducing the risks of non-compliance, delays, or subsequent disputes. Below are the main recommendations for strengthening the management and execution of real estate due diligence in the Dominican Republic:

• Order the certification of legal status and its update shortly before closing;
• (II) Confirm boundary and cadastral-physical correspondence with the support of professionals;
• (III) Demand registration cancellations and not settle for balance letters;
• (IV) Integrate the KYC/AML component from the beginning based on Law 155-17 ;
• (V) Submit all environmental licenses to technical and legal review;
• (VI) Quantify ITBI, fees and notary-registry expenses in the closing schedule;
• (VII) If there is financing or trust, align the bank or trustee requirements early.