Due diligence: documents you must verify before signing

Due diligence is not optional

Real estate due diligence is the legal and technical investigation your lawyer performs before you sign a purchase contract. In the Dominican Republic, where property registration has its own particularities, this process is absolutely critical.

Cost: $1,500-$3,000 USD (normally included in attorney fees) Duration: 15-45 days Who does it? Your real estate lawyer (not the developer's)

The 12 essential documents

1. Certificate of Title

Proves property ownership. Verify it's in the seller's name with no liens, encumbrances, or oppositions.

2. Legal Status Certification

From the Title Registry confirming current owner, charges, mortgages, seizures. Request recent (less than 30 days old).

3. Cadastral Plan (Survey)

Official plan delimiting exact property boundaries. Verify measurements match what you're buying.

4. DGII Tax Clearance

Confirmation the seller/developer is current on tax obligations.

5. IPI Payment Receipt

Proof that property tax is paid up (or valid CONFOTUR exemption exists).

6. Construction Permits

Municipal license, MOPC approval, environmental permit. Must be current and match the project being sold.

7. CONFOTUR Resolution

Official resolution certifying the project. Verify resolution number, specific exempt taxes, exemption period.

8. Purchase Contract (Draft)

Critical clauses: fixed price, delay penalties, cancellation terms, detailed specifications, payment escrow, delivery date.

9. Approved Architectural Plans

Verify approved plans match what's being built/sold.

10. Soil and Structural Study

Technical report on terrain capacity and structural design. Critical for coastal or multi-story projects.

11. Developer's Insurance Policy

Construction liability insurance.

12. Developer's Corporate Charter

Articles of incorporation, capital, legal representative, signatory powers.

What if due diligence reveals problems?

| Problem type | Recommended action | |-------------|-------------------| | Title with registered charge | DO NOT sign until resolved | | CONFOTUR pending approval | Include conditional clause in contract | | M2 discrepancy | Renegotiate price or request correction | | Expired permit | Demand renewal before signing | | Developer tax debt | DO NOT sign until settled | | Abusive contract clauses | Negotiate modifications with your lawyer |

Common buyer mistakes

1. Trusting the developer's lawyer — Hire your own
2. Skipping due diligence "because it's a big developer" — Always verify
3. Signing before getting results — Urgency is the enemy of good decisions
4. Not verifying CONFOTUR personally — Request and read the resolution
5. Not understanding what you sign — Demand translation if needed

Conclusion: Due diligence is the $2,000-$3,000 investment that protects your $150,000 investment. An independent lawyer, rigorous verification of all 12 documents, and patience to wait for results are the foundation of a safe purchase in the Dominican Republic.