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Buying Real Estate in the Dominican Republic: Title Insurance
Title insurance is part of every major real estate transaction in the United States and Canada. For a one-time premium, an insurance company assumes the obligation to indemnify the real estate buyer in case title to the property is defective. In effect, the buyer relies on a policy of title insurance to guarantee that he or she will actually own the property to be purchased. In the event of a lawsuit disputing the title, the title insurance company will defend the buyer in court and if the lawsuit is lost will pay or cure all valid claims or losses up to the amount of the policy. Title insurance may be obtained during or after the purchase of real estate.
In the Dominican Republic, as in many Latin American and European countries, the government provides title insurance. The Land Registry Law establishes an indemnity fund with which to pay claimants who due, for example, to an error of the Registrar, are deprived of their property. Unfortunately, the indemnity fund never collected sufficient funds to become operative and property owners remain unprotected. Recently, however, two American title insurance companies have begun to offer their services to buyers of Dominican real estate: First American Title Insurance Company and Stewart Title. Among the risks covered are: title vested on another person; title defect, lien, charge, privilege, mortgage or encumbrance; forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation in the conveyance; lack of right of access to and from the property; easement or right of way on the title; invalidity of any document upon which the title is based because it was not properly executed, sealed, acknowledged, notarized, delivered or recorded; invalidity of any document upon which the title is based because it was executed under a falsified, expired or otherwise invalid power of attorney; erroneous or inadequate legal description of the land.
The Dominican Corporation: An overview
CORPORATE ALERT: New Dominican Law Enacted
The most common business entity in the Dominican Republic is the corporation, locally called “Sociedad Anónima” (S.A.) or “Compañía por Acciones” (C. por A.). As corporations in other countries, Dominican corporations are legal persons which exist independently of its shareholders. Likewise, the liability of the shareholders is limited to the amount of their contribution to the corporation.
The Dominican Commercial Code provides for the existence of other business entities such as partnerships (“sociedad en nombre colectivo”), limited partnerships(“sociedadesencomandita”)and joint ventures (“sociedades en participación”). These structures, however, are seldom used because they are subject to the same tax treatment as corporations while lacking its limited liability component.
Obtaining Residency Status in the Dominican Republic: An Overview
Foreigners wishing to live or work permanently in the Dominican Republic are required to obtain residency status. Obtaining permanent residency in the Dominican Republic is a three-step process:
1. First, the foreign national must apply for a residence visa at the Ministry of Foreign Affairs ("Secretaría de Estado de Relaciones Exteriores").
2. Once the residence visa is obtained. the applicant must file within the next two months for his provisional residency at the Immigration Department ("Dirección General de Migración"). The procedure at Immigration usually takes approximately four months before provisional residency is granted for one year.
3. Finally, after the expiration of the provisional residency, the applicant may file for his permanent residency at the Immigration Department.
Quick Divorce in the Dominican Republic: An Overview
It is a matter of public policy in many countries that only their courts have the power to grant a divorce to their residents. A divorce obtained in a foreign jurisdiction would therefore be considered invalid. This principle is sometimes not considered applicable, however, in cases when both parties agree to the divorce. In the United States, for example, if both parties have given their consent, most states accept a foreign divorce under the principle of fairness called "estoppel." In 1971, the Dominican Republic took advantage of this exception and amended its Divorce Law to allow foreigners to obtain a divorce in its courts in one day without any residency requirement.
International Adoptions in the Dominican Republic: An Overview
International adoptions in the Dominican Republic are governed by Law #136-03. All adoptions must be done through an official Dominican government entity called CONANI (“Consejo Nacional para la Niñez y la Adolescencia” - National Council for Children and Adolescents). Private adoptions are not possible under the Law. All children are assigned to the adopting parents by CONANI.
Adoptions in the Dominican Republic are “privileged,” meaning that the adopted child will have the same rights as a biological child in his or her new family. Adoptions are also irrevocable.
The general requirements for an international adoption are the following:
(1) The adopting parents must be married, having lived together as a couple for at least five years.
(2) The adopting parents must be at least thirty years old and no more than sixty years old.
(3) The age difference between the adopting parents and the adopted child must be at least fifteen years.
(4) The child’s parents must consent to the adoption. In case of orphans, the authorization is obtained from the Court of Children and Adolescents (“Tribunal de Niños, Niñas y Adolescentes.”)
(5) The adopting parents must live with the child in the Dominican Republic for at least sixty days. This period is reduced to thirty days if the child is twelve years old or older.
(6) Children twelve years old or more must approve their own adoption.
(7) The adopting parents’ biological children who are twelve years old or older must give their opinion on the adoption.
The information presented should not be construed to be neither formal legal advice nor the formation of a lawyer/client relationship. You should not act upon this information without seeking professional counsel.
