- Thread starter tompass
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Real Estate Tax
My apologies to those who read this message and gave thought to a repsonse. In my negotiation for purchase of property, something was lost in the translation. What the seller was referring to ( I think) was a graduated inheritance tax that has to be payed and there must be change in bracket somewhere around one million pesos.
I don't understand why you would have to pay inheritance tax if you are buying a property. If the seller has inherited the property then surely he has to pay any inheritance dues before he sells? There is also I.V.S.S. - luxury house tax, currently starting at properties worth 3 million pesos & above (could go up to 5 million if pending legislation is passed), but this is an annual tax payable to D.G.I.I. not specifically at point of sale. Worth checking it has been paid though if property falls in that value bracket.
I am not being asked to pay this inheritance tax. The seller is complaining that he has to pay it and wants me to pay a portion of it for him. No way Jose! I have been trying, through the lawyer, to get him to sign an agreement to sell at the requested pesos per liter square providing that there is a current clear title, he is who he says he is, that there are no other heirs or those who can lay claim to the property, and that the taxes are paid. It has been difficult and if he does not sign the agreement, I am out of the deal. Thanks for your input.
OK now I understand. Would the signing of such an agreement protect you in the event of other inheritees "turning up" after you had paid? Like quite a while later? Sounds like you are very sensibly doing all you can to protect yourself, but I just wonder how good this signed agreement would be in the event of future problems? It may be better to cut & run now & look for a property unencumbered by the hint of trouble down the road! Good luck.
You are correct about unexpectant problems. Yesterday I recieved from the DR Consulate copies of statements of ownership of the property from the widow and the only offspring. Also stated that are giving up all and any future rights to same. I think this may clear that problem up.
You seem to be buying property still titled in the name of the decedent. The sellers are the heirs to the decedent. To transfer title to you, title has to be transferred first from the decedent to the heirs. This requires payment of inheritance taxes.
You should be very careful in this kind of transaction. Make sure that all the heirs show up as sellers. Don?t pay until the ?estate declaration? is approved at the Superior Land Court.
You should be very careful in this kind of transaction. Make sure that all the heirs show up as sellers. Don?t pay until the ?estate declaration? is approved at the Superior Land Court.
The property is being purchased from a widow whose husband passed away several years ago. Both her name and her husband's name are on the original title. There is only one adult child who as I understand the law, is the heir and therefore inheritance tax must be paid. This woman and her daughter live in NYC and the property is being sold by her brother who lives in Santo Domingo. Thus far I have a signed agreement to sell the property at the agreed upon price, all of the brother's identification documents, the letter from the sister authorizing the sale, and notarized copies of ownership and giving up any rights to the property from the Consulant in NYC. Now trying to obtain the real estate tax information and will bring everything to the appropriate office to process transfer of the title. Inheritance tax will be paid as is required. Am I missing anything?