How much

antojo

New member
Aug 22, 2006
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Can anyone please tell me how much on top of the purchase
price I will have to pay example if I buy a house for 80,00$ how
much in total will it cost me with legal fees and evreything else.
taxes etc
 

Sharlene

New member
Mar 4, 2006
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Rough figures...

I think your question would've got more response posted in the legal section. However, I've been dealing with Guzman Ariza (the lawyers who moderate the legal forum) recently and can give you some info which may help you.

If you're buying as an individual, my example would be on a $70,000 property with costs as follows

4.4% Transfer Taxes which are based on the government appraised value of the property NOT the price paid by yourself. These can be avoided if buying through a corporation using a `contribution in kind loophole, but then you have to pay to set up the corporation ($1400 plus depending on the capitalization), pay for the documentation to set up the contribution in kind (approx $460 inc 16% service tax) and the other thing to take into account is that a new 1% tax has just been introduced on `dormant' companies which are just used to hold real estate. Obviously you also have to file company accounts every year (approx $350) which is yet another expense.

Approx $700 inc 16% service tax for legal fees. This is normally a set fee.

$250 Surveyors Fee (exempt from service tax).

Optional Title Insurance of 1% of insured value. I understand that to take out title insurance is standard in USA and Canada, but not usual in UK for example.

Obviously, these fees can vary from lawyer to lawyer, but I would have no hesitation in recommending Guzman Ariza as I have found them to be extremely helpful and informative every step of the way despite the fact that I have asked them untold amounts of questions due to my ignorance of the DR legal system. Their patience with me has been astounding and I shall definitely be engaging them for further legal work.
 

antojo

New member
Aug 22, 2006
6
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0
Thank you

Thank you for your helpful replies, it helps to know what to budget for
I then know what property I can afford!!


Regards
Marileen