I made an offer on a house in the DR about 5 months ago. When it came time to close the deal we found the 'owners' didn't have a tittle for it. This is one of those deals where they bought the land from someone, about 40 years ago, just on the person's word. The guy whou bought it is now dead. I told them we would not buy it until they got the title. They started the process to get the tittle, but I now come to find out that the house is on tierra comunal or government owned land. Their lawyer assures me that if I buy the house and the heirs sign off nobody could come and claim the land and that I should be able to get the tittle in my name eventually, because if you get a saneamiento done they give the tittle to whoever is living on the place at the time. He said this would take quite a bit of time, though. I'm not sure what to do, as I really like the house and the price I'm paying for it is a bargain, but I don't want to get myself into a deal where I may end up not being able to get the tittle or worse have someone or 'the government' come and claim the land. Any advise on this would be greatly appreciated...
- Thread starter suarezn
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Help about buying a property...
What does YOUR lawyer say?? Does it concur with what their lawyers are saying?? As Alan says, squatters rights ARE enforceable in this country BUT...........
Where is the property/land? If it is such a good buy, why are the local rich Dominicans not buying it?? Question, question, question! Check the answers until you are 99% sure of the right answer. Until then, don't buy!!! - Grahame.
Where is the property/land? If it is such a good buy, why are the local rich Dominicans not buying it?? Question, question, question! Check the answers until you are 99% sure of the right answer. Until then, don't buy!!! - Grahame.
BushBaby: The house is in a small town where I used to live (La Bija). I think the reason why nobody has tried to buyt it is that most people in that town don't have the kind of money they're asking for it and those who do, either have nice houses already or are building new ones. Also a lot of the Dominican Yorks who are from that town and have made good money in the US are buying / building in the bigger cities of Cotui or San Francisco De Macoris.
My lawyer thinks it may be OK. That we may be able to get the tittle eventually, but has no idea when that would be. The main reason why I want THAT house is that is mainly for my grandparents to live in. They're old and I don't want to have them move out of the town where they know everybody and have all their friends to a bigger town. I also don't have the time to go look around or build a house in the DR. So this house would be as good as I can get for them, for now. The other thing is that I don't want to wait very long to buy as the peso continues to lose value and prices continue to go up. So I'm looking for an expert opinion on this. Hopefully Fabio G. will read this and respond.
My lawyer thinks it may be OK. That we may be able to get the tittle eventually, but has no idea when that would be. The main reason why I want THAT house is that is mainly for my grandparents to live in. They're old and I don't want to have them move out of the town where they know everybody and have all their friends to a bigger town. I also don't have the time to go look around or build a house in the DR. So this house would be as good as I can get for them, for now. The other thing is that I don't want to wait very long to buy as the peso continues to lose value and prices continue to go up. So I'm looking for an expert opinion on this. Hopefully Fabio G. will read this and respond.
If it were me, I would be looking for a different property. Sounds like a situation where you could invest a lot of money, time, and nervous energy and still end up with nothing.
You would be foolish to pay the seller before you have a clear title in hand. Meantime, where will you grandparents live.
Sounds to me as though you could have them provided for much sooner by looking further or building.
Regarding your lawyer's optimism, of course he is. If you continue with this property, he is assured of work from you. The longer it takes, the better. Turn back before throwing money into the hole.
You would be foolish to pay the seller before you have a clear title in hand. Meantime, where will you grandparents live.
Sounds to me as though you could have them provided for much sooner by looking further or building.
Regarding your lawyer's optimism, of course he is. If you continue with this property, he is assured of work from you. The longer it takes, the better. Turn back before throwing money into the hole.
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In Panama and a few other countries, "rights of possession" are often sold. The price is of course much lower than one would pay for titled property. In some cases i've seen, buyer agrees to escrow money for payment when title issues are cleared up. That way, you have control of the property, a "lock" so to speak. Perhaps a nominal amount up front or monthly money to the seller to keep him interested in clearing the title. There is usually some way of structuring a deal to make it work if you're creative enough.
Please take the advice of Alan and Ken here. I wouldnt touch a great deal without clear title. That is what makes a bad deal.
If you don't have the time, pay me to go and look for you and I will even buy for you. I will promise you that you will own something in the end other than smoke and mirrors!
I have honestly never heard of anyone doing something like this before once they know it is a clouded title. If you can't buy this with ALL the money in escrow untill it is cleared up completely YOU don't belong buying it.
If you don't have the time, pay me to go and look for you and I will even buy for you. I will promise you that you will own something in the end other than smoke and mirrors!
I have honestly never heard of anyone doing something like this before once they know it is a clouded title. If you can't buy this with ALL the money in escrow untill it is cleared up completely YOU don't belong buying it.
Anybody that knows what I do for a living will respect the fact that I'm telling you to get another lawyer. Are you sure that this is what this individual is telling you or are you inferring or reading things into what that individual is saying? Get a warranty of clear title from an individual or entity that has sole and merchantable title, otherwise, walk and don't look back. There is plenty of other property out there, perhaps more expensive, but you get what you pay for.
For property that has been recorded under the Land Registry Law ("Ley de Registro de Tierras") (which I guess could be more than 95% of all properties in the DR), squatters can never obtain legal title no matter how long they have been in possession. The title holder has the perpetual right to evict the squatter. However, if the squatter has "improved" the property in good faith, he has the right to receive proper compensation for the improvements.
This is the law. In practical terms, evictions are sometimes difficult for extralegal reasons, especially because the authorities in charge of enforcing the law are too lenient, inefficient or corrupt.
In the countryside, many properties which once had clear title present problems due to the death of the original owner. According to the Land Registry Law, upon the death of an owner, the heirs must petition the Land Court to divide the property between them and issue new titles in their names. To do this, the heirs must hire a lawyer to collect birth certificates, etc. and present evidence of having paid their estate taxes. This is more than many poor farmers can do or afford. In many cases, therefore, the heirs look for a buyer to advance the funds to do the legal work. A good attorney should be able to determine the chances of something going awry in the procedure and advise his client on what the risks are. In no case should the client disburse more than 10 to 20% of the purchase price before seeing a clear title.
This is the law. In practical terms, evictions are sometimes difficult for extralegal reasons, especially because the authorities in charge of enforcing the law are too lenient, inefficient or corrupt.
In the countryside, many properties which once had clear title present problems due to the death of the original owner. According to the Land Registry Law, upon the death of an owner, the heirs must petition the Land Court to divide the property between them and issue new titles in their names. To do this, the heirs must hire a lawyer to collect birth certificates, etc. and present evidence of having paid their estate taxes. This is more than many poor farmers can do or afford. In many cases, therefore, the heirs look for a buyer to advance the funds to do the legal work. A good attorney should be able to determine the chances of something going awry in the procedure and advise his client on what the risks are. In no case should the client disburse more than 10 to 20% of the purchase price before seeing a clear title.