title transfer

[kicker98]

A few years ago I bought a lot under my brother's name in the vicinity of Santiago. Since then, I have been building a three story building which is almost completed. I want to transfer the title under my name for obvious reasons. Please advise as to what steps I should take to change the title to my name and what to expect to pay in terms of taxes and closing cost. also, what is the formula use for taxing a lot? by meter or value of property?

Your reply is very much appreciated.

[Ken]

You should get an attorney to help you. The change will need to be made by the Land Court.

[kicker98]

Originally Posted by Ken

You should get an attorney to help you. The change will need to be made by the Land Court.

Thanks Ken,

I would appreciate if you can be a bit more specific with regard to the change. Will this transfer be treated as a new purchase? or could we just transfer to my name by having my brother sign a document to present to the land court? I spoke to lawyer to initiate the change, but he is telling me that the property was taxed at 600 pesos per sq. meter. I could be wrong, but it sounds like a lot to me.

Thanks again

[Ken]

You should wait for a reply from the lawyer who answers questions in this section. He can give you the straight scoop.

[Fabio J. Guzman]

Your brother will have to sell the property to you. Taxes on real estate sales are approximately 5.5% of appraised value. It does not matter what price you put on the deed of sale.

If your bother GIVES you the property you'd pay more since taxes on gifts are higher than taxes on sales.

You will need a lawyer to prepare the deed of sale, etc.

[kicker98]

Thank you Mr. Guzman for your valuable info. Do you recommend forming a corporation and taking this title under the corporation or under my name? If so what are the advantages or disadvantages of doing so?

Thank again,

Thank you dr1 for your source of information.

[Fabio J. Guzman]

My recommendation is that you take title under a corporate structure for the following reasons:

1. Your personal liabilities, both in the Dominican Republic as in your country of residence, will not affect the property held by the corporation.

2. It allows for quick resales since it is much easier and less expensive to resell all the shares of stock of the asset-holding corporation than it is to convey real estate.

3. In case of your death, it simplifies greatly the handling of the estate and the transfer of control to the heirs. Under Dominican law, inheritance of real property is governed by local statute which establishes that part of the estate must go to certain heirs by law (for example, a foreigner with a legitimate child must reserve 50% of the estate to that child irrespective of the existence of a will or of the law of his country of residence). This rule does not apply when ownership of real estate is held by a corporation. Also, if the title is in the name of one or several individuals and one of them dies, the procedure to change the title to the heirs is cumbersome and time-consuming.

[kicker98]

[QUOTE=Fabio J. Guzman]My recommendation is that you take title under a corporate structure for the following reasons:

1. Your personal liabilities, both in the Dominican Republic as in your country of residence, will not affect the property held by the corporation.

2. It allows for quick resales since it is much easier and less expensive to resell all the shares of stock of the asset-holding corporation than it is to convey real estate.

3. In case of your death, it simplifies greatly the handling of the estate and the transfer of control to the heirs. Under Dominican law, inheritance of real property is governed by local statute which establishes that part of the estate must go to certain heirs by law (for example, a foreigner with a legitimate child must reserve 50% of the estate to that child irrespective of the existence of a will or of the law of his country of residence). This rule does not apply when ownership of real estate is held by a corporation. Also, if the title is in the name of one or several individuals and one of them dies, the procedure to change the title to the heirs is cumbersome and time-consuming.[/QUOTE

Thank you very much Mr. Guzman for your much needed recommendation.