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Closing Process

The information that follows describes the process for closing on your reserved lot.

Reservation Processed

Your reservation will be processed on or after the 4th business day following your signature on the Real Estate Reservation Agreement form. Once processing has occurred, you will be mailed a closing packet by overnight Federal Express.

Applicable Real Estate Law

Real estate transactions in the Dominican Republic are governed by Property Registry Law No. 108-05 and its regulations. There are no restrictions on foreigners purchasing real property in this country.

Ownership of property is documented by a certificate of title issued by Title Registry Offices. Title to the Ocean Star Estates property is in the name of Inversiones Dimerca, S.A., the Dominican Republic company formed by Ocean Star Estates, LLC to buy and sell real estate for it. Inversiones Dimerca is represented by Bryan Rundell. A copy of the certificate of title for the property is available by clicking here: parcel 912 and parcel 985.

Titling Your Property

Individual

Title can be under the name of an individual, or individuals (e.g., a married couple).

If you wish to have the lot titled under the name of a business, we recommend that you first title it in the name of an individual or individuals, and then later transfer title to a foreign business once it has been registered by the Dominican Republic, or to a Dominican Republic business once it has been formed. Proceeding this way will ensure that you receive title much quicker. It typically takes two to three months to have a business registered by the Dominican Republic, and three to four months to form a Dominican Republic business.

Non-Dominican Republic Business

All foreign businesses must be registered/naturalized by the Dominican Republic in order to operate in that country. This includes self-directed IRA LLCs. The process typically takes two to three months and involves the following general steps:

1. Buyer will mail the following to the Dominican Republic Consulate General in Chicago, Illinois:

  • Cover letter (click here for an example)
  • Original articles of incorporation (plus any amendments) and a copy of the operating agreement or by-laws for the business being registered - stapled together! If you do not staple the documents together, you will be charged a separate fee for each.
  • Cashier’s check, money order or business check (no personal checks) for $80 per document payable to the Dominican Republic Consulate General.
  • Federal Express envelope with pre-paid international airway bill, for legalized document(s) to be forwarded from the Consulate General to our attorney Carmen Jaquez in the Dominican Republic. Her address is:

    Carmen Jaquez
    Carretera Don Pedro, No. 73 Residencial Las Dianas
    Santiago, Republica Dominicana
    phone: 809-963-3677

    You may contact Ocean Star Estates for our Federal Express number, so that you can select "third party" on the airway bill. Be sure to write down your tracking number, so you can track the package's delivery.

The Consulate General's address is:

Dominican Republic Consulate General
8700 W. Bryn Mawr
Suite 800 South
Chicago, IL 60631
phone number: 773-714-4924

The Consulate will legalize the document(s) in two business days (includes the day of receipt). You may request in your cover letter same day service - please call ahead of time to verify this can be done, and to find out a name to whose attention you can send the document(s). (Note: the example cover letter does not include this request. You will need to add it.)

 If you need to expedite the process, you may also make an appointment a day or two ahead of time and the Consulate will legalize the document during your appointment. The Consulate is open Monday - Friday from 9:00 a.m. - 4:00 p.m. CST.

2. Once the attorney receives the legalized document from the consulate, it will be translated into Spanish. Dominican Republic law requires that all legal documents be in Spanish. The attorney fee to naturalize/register your company is $2,000. The attorney will require a deposit of $1500 to begin the work. You will be notified of this at that time. Please make the check payable to Carmen Jaquez and send it, along with a copy of your passport, to the following address:

Carmen Jaquez
Carretera Don Pedro, No. 73 Residencial Las Dianas
Santiago, Republica Dominicana
phone: 809-963-3677

You may contact Ocean Star Estates for our Federal Express number, so that you can select "third party" on the airway bill. Be sure to write down your tracking number, so you can track the package's delivery.

 The final $500 is due once the company has been registered.

3. The attorney will complete a Merchant Registry form, which the buyer must sign.

4. The attorney will send the legalized document and the signed Merchant Registry form to the Chamber of Commerce in the Dominican Republic. The Chamber of Commerce will take approximately 30 days to review the documents and register the business.

5. The buyer will receive a Dominican Republic business registration number (RNC).

Dominican Republic Business

A benefit to titling under the name of a Dominican Republic business is that upon selling the property, the buyer avoids the property transfer tax fee (currently 4.5 percent of the purchase price), which is an incentive to the buyer. This is because the buyer is buying the shares in the company. The tax benefits to the business include allowing up to $85,000 per year in income that is not taxable. The cost to set up a Dominican Republic business is $3,000. This cost includes attorney's fees and taxes. It typically takes three to four months to form a Dominican Republic business. Our attorney can assist you in setting up a Dominican Republic business.

Closing

The process for closing depends upon which of the following two categories you fall into:

(1) Lot Titled (i) Under the Name of an Individual or Individuals, (ii) Under the Name of a Non-Dominican Republic Business Already Registered by the Dominican Republic, or (iii) Under the Name of a Dominican Republic Business Already Formed: click here

OR

(2) Lot Titled (i) Under the Name of a Non-Dominican Republic Business To Be Registered by the Dominican Republic or (ii) Under the Name of a Dominican Republic Business To Be Formed: click here

Category 1
Individual(s) / Registered Non-Dominican Republic Business / Formed Dominican Republic Business

You will be mailed a closing packet that includes the following: 

  • Two completed copies of the Act of Sale Under Private Signature contract, in Spanish. (Dominican Republic law requires that all legal documents be in Spanish.)
  • One completed copy of the Act of Sale Under Private Signature contract, in English. (We will provide a true and accurate English version of the contract as a service to you.)
  • “Process for Closing on Lots in Ocean Star Estates” document
  • Federal Express pre-paid return envelope.

You will need to return the following to us within 45 days of the signature date on your Ocean Star Estates Real Estate Reservation Agreement form:

  • Two signed, original copies of the Act of Sale Under Private Signature contract (Spanish version)

  • Final payment, in U.S. dollars, by personal check, cashier's check, or money order, payable to Ocean Star Estates, LLC; or by credit card (MasterCard, Visa, American Express or Discover).

Self-Directed IRA Buyers: Your closing packet will be as described above, along with instructions that are specific to the needs of your custodian. Your custodian will need to return the following to us within 45 days of the signature date on your Ocean Star Estates Real Estate Reservation Agreement:

  • Two signed, original copies of the Act of Sale Under Private Signature contract (Spanish version)

  • Final payment, in U.S. dollars, by check, payable to Ocean Star Estates, LLC; or by credit card (MasterCard, Visa, American Express or Discover).

Buyers Financing: If you are financing your purchase through us, you will be mailed a closing packet once you have been pre-approved. The packet will be as described above, only you will receive a Promise of Sale contract at this point (not the Act of Sale Under Private Signature contract). You will need to return the following to us within 45 days of of the signature date on your Ocean Star Estates Real Estate Reservation Agreement:

  • Two signed, original copies of the Promise of Sale contract (Spanish version)

  • A down payment of 40 percent of the total purchase price (less your deposit paid), by personal check, cashier's check, or money order, payable to Ocean Star Estates, LLC; or by credit card (MasterCard, Visa, American Express or Discover).

Once we have received the fully executed documents and payment requested in the closing packet you are sent, the documents will be sent to our attorney in the Dominican Republic:

 

Carmen Jaquez
address: Carretera Don Pedro, No. 73 Residencial Las Dianas
Santiago, Republica Dominicana
email: carmenjaquez@hotmail.com 
cell phone: 1-809-963-3677

 

If you need to speak with Carmen directly about your closing, you may contact her. Carmen speaks Spanish, but we have an English translator who can be present in Carmen’s office during your conversation. Please contact Humberto Metz at 1-829-962-7522 (cell phone) or menz_98@hotmail.com to arrange this.

Ms. Jaquez will finalize the contracts and return an original copy to us, which we will mail to you (for self-directed IRA buyers, the original will be mailed to your custodian and you will receive a copy).

The certificate of title number on the Act of Sale Under Private Signature contract and the Promise of Sale contract is that for the entire development. Surveying of the individual lots was completed the end of August 2007 and documentation submitted to the Dominican Republic government for approval. This process is simple and we expect no delays since the entire property has already been surveyed and approved. The process should be completed approximately 45 days from the submittal date. In the interim, if you signed the Act of Sale Under Private Signature contract, you will have provisional title to your property, which means you can do anything with the property allowed under Dominican Republic law except transfer title.

Once a certificate of title number is available for your lot (and, for buyers who are financing, financing has been approved), we will send you a final closing packet, which will include three copies of the completed Act of Sale Under Private Signature contract, in Spanish, with the actual certificate of title number for your lot. You will simply need to sign all three copies of the contract and return them to us. If you are financing, the final payment of 60 percent will be made at this time.

Your final closing packet also will include