BUYING APARTMENT WITH REMAX

[junglemonkey]

Buying an older apartment via Remax and Banco Popular loan. Would like some tips, here's what happened so far:

Apartment building 20 apartments near Jardin Botanico. Nice little apartment. The owner has people renting it.
Saw the apartment and met the renters (cubans) who seem decent and told/showed us everything wrong, good, etc about the place. They have 7 years renting and will be moving out in 6 months. A signed and stamped letter from the company who manages the building says the apartment is uptodate with maintenance.

Copies of the title, ipi and another document were sent to me and seem to be inorder (i guess the bank will determine that?).

Any tips on what im missing to do or research with respect to the bank or remax or the apartment?

Do i need a lawyer... I am hoping not, since its remax and banco popular (where i am paying legal fees for the deal) I should be secure with respect to papers etc?!

Remax guy mentioned he can do a contract for less value so I pay a lesser amount of something..
The IPI has the value of the apartment less than have of what i am buy it for.

I have to get a banco popular assessment of value of the apartment.

Well thanks ahead of time.

 

[ando1991]

Why would u not get lawyer?
Saving pennies and could get screwed in the long run...

Sent from my SM-G955U using Tapatalk

 

[johne]

That is a similar situation to what is done in a US state that I flip a lot of properties. It is a requirement that a lawyer from the bank be there. There must be a lawyer from the bank but he is there to protect the interest of the bank. Yes you are paying lawyer fees associated with he is doing to protect the loan. It can be done without you having a lawyer "of your own". I wouldn't do it. I always have my own lawyer do "my end". First of all, are you able to understand the legalize of all the paper work? Do you know what the real estate agent told the lawyer? Is it factual? Do you understand all of the terms of the lease for the maintenance? I know it's an added expense but someday you might regret not spending the money.
That moment might be when the tenants don't move out in 6 months. Good luck.

 

[windeguy]

Why would u not get lawyer?
Saving pennies and could get screwed in the long run...

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We have been screwed by lawyers as well in the DR with respect to real estate. So, you "takes your chances" either way.

As far as reducing the "value" to save on transfer tax, that is illegal but commonly done. Once again, you "takes your chances".

 

[johne]

We have been screwed by lawyers as well in the DR with respect to real estate. So, you "takes your chances" either way.

As far as reducing the "value" to save on transfer tax, that is illegal but commonly done. Once again, you "takes your chances".

Poor advice windy. Just because you got "screwed" is no reason to "just take your chances". What about Fabio???
And your comment about saving on transfer tax is correct...until you advise again to "take your chances". I don't know where you invest with such a cavalier attitude. Its not for me and I do it to put bread on the table. Oh, well.

 

[Gadfly]

if there is a HOA (home owner's association) investigate thoroughly, i.e. who is administrator? speak w/administrator, ask about record keeping books, how many are rentals, how many are behind in HOA payments, pets allowed? etc etc. with HOA's, administrators, management there.... be careful

 

[Russell]

I would get a Lawyer, try Guzman ... he seems credible.
My best Business advice over the years is true here "ASSUME NOTHING''

Russell

 

[lifeisgreat]

Get a lawyer don’t be foolish!

 

[melphis]

Keep in mind that Remax International will do absolutely nothing for you if this deal should have some problems. All they do is collect a fee here.
There is no such thing as a licensed real estate agent in the DR and the ones I have had any dealings with accept zero responsibility for anything.
My advise would be to research it to death, get a good lawyer you can communicate with and then research it again. You are on your own here.
There is very little recourse if it goes south. Sure you can sue but the courts here are more plugged up than in North America and bribes here count.

 

[johne]

if there is a HOA (home owner's association) investigate thoroughly, i.e. who is administrator? speak w/administrator, ask about record keeping books, how many are rentals, how many are behind in HOA payments, pets allowed? etc etc. with HOA's, administrators, management there.... be careful

THIS is huge. If 5 out of 20 don't pay...whoops I guess you're out of a well maintained building or ante up 20% more on the monthly

 

[johne]

if there is a HOA (home owner's association) investigate thoroughly, i.e. who is administrator? speak w/administrator, ask about record keeping books, how many are rentals, how many are behind in HOA payments, pets allowed? etc etc. with HOA's, administrators, management there.... be careful

THIS is huge. If 5 out of 20 don't pay...whoops I guess you're out of a well maintained building or ante up 20% more on the monthly

 

[johne]

Keep in mind that Remax International will do absolutely nothing for you if this deal should have some problems. All they do is collect a fee here.
There is no such thing as a licensed real estate agent in the DR and the ones I have had any dealings with accept zero responsibility for anything.
My advise would be to research it to death, get a good lawyer you can communicate with and then research it again. You are on your own here.
There is very little recourse if it goes south. Sure you can sue but the courts here are more plugged up than in North America and bribes here count.

This is excellent advise. Free but he has no horse in the race like the broker does.

 

[El Matatan]

That is a similar situation to what is done in a US state that I flip a lot of properties. It is a requirement that a lawyer from the bank be there. There must be a lawyer from the bank but he is there to protect the interest of the bank. Yes you are paying lawyer fees associated with he is doing to protect the loan. It can be done without you having a lawyer "of your own". I wouldn't do it. I always have my own lawyer do "my end". First of all, are you able to understand the legalize of all the paper work? Do you know what the real estate agent told the lawyer? Is it factual? Do you understand all of the terms of the lease for the maintenance? I know it's an added expense but someday you might regret not spending the money.
That moment might be when the tenants don't move out in 6 months. Good luck.

if there is a HOA (home owner's association) investigate thoroughly, i.e. who is administrator? speak w/administrator, ask about record keeping books, how many are rentals, how many are behind in HOA payments, pets allowed? etc etc. with HOA's, administrators, management there.... be careful

I would get a Lawyer, try Guzman ... he seems credible.
My best Business advice over the years is true here "ASSUME NOTHING''

Russell

Keep in mind that Remax International will do absolutely nothing for you if this deal should have some problems. All they do is collect a fee here.
There is no such thing as a licensed real estate agent in the DR and the ones I have had any dealings with accept zero responsibility for anything.
My advise would be to research it to death, get a good lawyer you can communicate with and then research it again. You are on your own here.
There is very little recourse if it goes south. Sure you can sue but the courts here are more plugged up than in North America and bribes here count.

All of the above. Most large US/Canadian corporations just license the use of their names in the DR. Remax, Avis etc. Do not trust a single thing that you cannot independently verify.

 

[LTSteve]

Buying an older apartment via Remax and Banco Popular loan. Would like some tips, here's what happened so far:

Apartment building 20 apartments near Jardin Botanico. Nice little apartment. The owner has people renting it.
Saw the apartment and met the renters (cubans) who seem decent and told/showed us everything wrong, good, etc about the place. They have 7 years renting and will be moving out in 6 months. A signed and stamped letter from the company who manages the building says the apartment is uptodate with maintenance.

Copies of the title, ipi and another document were sent to me and seem to be inorder (i guess the bank will determine that?).

Any tips on what im missing to do or research with respect to the bank or remax or the apartment?

Do i need a lawyer... I am hoping not, since its remax and banco popular (where i am paying legal fees for the deal) I should be secure with respect to papers etc?!

Remax guy mentioned he can do a contract for less value so I pay a lesser amount of something..
The IPI has the value of the apartment less than have of what i am buy it for.

I have to get a banco popular assessment of value of the apartment.

Well thanks ahead of time.

Remax and Banco Popular are not looking out for your long term interests. Of course you need to hire an attorney in the DR for this transaction. You would simply be foolish if you trust anyone in this process.

 

[windeguy]

Poor advice windy. Just because you got "screwed" is no reason to "just take your chances". What about Fabio???
And your comment about saving on transfer tax is correct...until you advise again to "take your chances". I don't know where you invest with such a cavalier attitude. Its not for me and I do it to put bread on the table. Oh, well.

My point is that you are taking a chance using any lawyer and you are taking a chance if you reduce the "value" to save on transfer taxes. And I mean any law office although some have better track records than others. I hope that makes my opinion on this matter clear. Getting a clear title (with a deslinde if applicable) would be my main concerns.

 

[Cdn_Gringo]

Suffice it to say, "You are taking your chances" when you purchase real estate in this country. Lots can go wrong but occasionally things do go right - usually only with the help of an honest attorney, an honest real estate agent, and an honest seller.

-No title insurance in this country
-Property inspectors are a joke
-No licensed real estate agents or even a professional association to regulate real estate practices
-Everyone seems to represent themselves and their interests and not those of the purchaser
-Agencies such as Remax, Caldwell Banker, Century 21 etc do not operate under the auspices of their north american counter parts
-It is very easy to get sucked into some sort of underhanded money saving scheme in these transactions
- It is easy to buy here, often very difficult and time consuming to sell.

 

[JD Jones]

Remax and Banco Popular are not looking out for your long term interests. Of course you need to hire an attorney in the DR for this transaction. You would simply be foolish if you trust anyone in this process.

I wouldn't trust Remax, but I've used BPD for various property acquisitions and they absolutely held my hand throughout the entire process up to getting me the title in my name.

I have always been impressed by their services and when I buy another property it will be through them.

Know your bank manager and it will put your mind at ease.

 

[Ducadista]

Apart from getting a lawyer, one (not the banks) should get a home appraiser.

 

[JD Jones]

Apart from getting a lawyer, one (not the banks) should get a home appraiser.

You can get your own appraiser, but the bank will still send theirs and that is the appraisal the bank will use to base it's decision.

 

[irishpaddy]

i used Guzman Ariza when i bought my apartment and have nothing but praise for the company and the extra expense saves a lot of worries ...there are times to cut corners ...this is not one of them
no such thing as a CHEAP lawyer