Regulations to build in Las Terrenas

The best way to proceed with your property is to first get the design parameters from “TURISMO”, that give you the possibilities of what can you build in that property, and all the regulations that you should follow., this parameters are LAW for 6 months, once we have the parameters  then we can recommend you want can be realizable from and possibilities of this parameters and from a market point of view.
We need the following documents to ask for the design parameters for your property.
A) Catastral plan with gps points ( this is the surveyors plan, that should have gps references.)
B) Copy Title of ownership, if not in your name you have to incorporate also the contract of buying.
C) A letter directed to the director of TURISMO asking in your behalf the design parameters.
D) The “cotas de nivel” (Land levels). with the existing trees.

PROCESO DE UN PERMISO DE CONSTRUCCION

DE UNA OBRA MENOR, (AlREDEDOR DE 200M2)

This is the process to optain a construction licence.

But the amounts taken as example are based on a 200m2 villa.

1) TURISMO (3 meses / 1/2 mes VIP)

Parametros de diseño (DESING PARAMETERS).                                 5.000rd /  10.000rd (fast track)

*) MEDIO AMBIENTE (enviroment)                                       Deposit. 5.000rd / -+ 20.000 rd they calculate the amount based on the proyect.

Un mes a un mes y medio en enviar inspector. Se entrega juego 11”x17”.

Se pide una muestra del agua para analizarla en laboratorio, dan certificado y de ahí se propone una planta de tratamiento. (también lo pide turismo)

They take around one month to two months to send an inspector to the site,that depends of the amount of work they have. Depending of the location of the proyect and the scale they may ask for a study of enviromental impact, which in this case i doubt it since we dont have any lake, Rivers or swaps near.

They ask for a sample of the water,and its analisis. For a small proyect it cost around 3.000 rd to 5.000. I have to ask and explain where its located since they come from Santo Domingo. This part of the procces can be done at the same time that TURISMO.

2) AYUNTAMIENTO  (+- 3 DIAS) (city hall, around 3 days)

A)      imp. uso del suelo 5% costo del solar (5% of the value of the land)

B)    Imp. de Construccion 5 x 1000 (this amount its calculated  based on the materials of the construction.)

EN ESTA ETAPA SE SELLAN TODOS LOS PLANOS Y SE DAN 2

FACTURAS, UNA PARA OBRAS PÚBLICAS, IMPUESTO DE CONSTRUCCION.

They stamp all the set of plans.

3) COMISION DE SAMANA (1 SEMANA)         Dep. 4.200rd / IMP+-4.000

Se entrega juego 11”x17”.

SAMANA COMITION around 1 week. They keep one set 11”x17”

4) TURISMO (3 MESES CON SEGUIMIENTO)                   1.250rd x hab.

Se quedan con un juego 11”x17” y CD, sellan todos los planos.

Cheque certificado o bancario.

TURISMO, 3 months, even paying Fast track.they stamp all the plans,

Paid by certificated check.

5) LIGA MUNICIPAL (1 SEMANA O MENOS)            7.000rd a 8.000rd

Sellan todos los planos. Cheque certificado o bancario.

City council, they stamp all the plans and keep one set 11”x17”,

Paid by certificated check

6) OBRAS PUBLICAS (3 meses STD / 1 mes SFM) department of public construction, we send the plans to San Francisco of Macoris. Around 1 month.

A) IMP DE CONSTRUCCION. (Pagado a ayuntamiento) tax already paid to city hall on 2).

B) CODIA                                                              +-3600 a 4000rd

GASTO ADICIONAR , TRAER TRES INSPECTORES, LEGAL, TASACION, PARQUEO,

PAGARLES EL VIAJE, IR A BUSCARLOS Y REGRESARLOS, MAS 2.000 rd POR CADA UNO. (SI ES VIA SFM, NO CORRE ESTE GASTO, TAMPOCO LA POSIBILIDAD

DEL ESTUDIO DE VULNERABILIDAD.)

Remember that all the amounts are based on a small project of 200 square meters.

To be able to give you an exact amount, i need to know the value of the property,  second the size of each unit that you plan, 120m2 or more? The number of bedrooms of each unit. All the amounts mention above are on Dominican Money. Exchange rate 1 dollar = 36.5 rd.


Who pays taxes?

The National Business Council (Conep) has released the findings of an EcoCaribe study that shows that the fiscal burden in the DR is 20%, not the 16% cited by the government. The study, which was published yesterday, found that the 16% figure does not include the taxes paid for social security, municipal taxes, the electricity subsidy, banking supervision charges, and the charges paid to the National Housing Institute (Inavi) and the National Training Institute (Infotep) that add up to 3.28% of Gross Domestic Product, bringing the total to 20%.
Conep says that the weight of paying taxes is on relatively few, both when it comes to evasion and the strong presence of the informal sector. The study indicated that the burden for the formal sector is 26.2%, while the informal sector only carries 10.2% in taxes.
The study concludes that 20% is high compared to the DR’s main competitors in Central America.
Conep says that the formal sector of the economy pays 75.8% of the taxes.

Fake eco certificates in Las Terrenas

It has emerged that some tourism project promoters in Las Terrenas on the Samana Peninsula appear to have forged the environmental impact certificates needed for building in the area. According to Hoy, Deputy Environmental Management Minister Ernesto Reyna has filed a formal complaint against the promoters of a commercial center called Plaza Milano in Las Terrenas. The building itself is at the finishing stages as the legal process goes ahead.
Reyna told reporters that more cases were under investigation because of complaints filed in the area, but he added that the promoters, nearly all of whom are foreigners, are fearful of revealing names because, allegedly, they have received threatening phone calls from the responsible parties.
Some promoters say they have not been contacted by the relevant Ministry personnel. Also mentioned in the report is the claim that some projects had not provided clear-cut specifications on what is supposed to be built.
Pressure has recently been brought to bear on the Ministry of the Environment to resume several projects that were halted because they would affect environmentally sensitive areas like wetlands and mangroves.

DR Banks Strong

DR banks strong
The end of 2008 found Dominican Banks with assets totaling RD$596.5 billion, for an increase of RD$60 billion over 2007. Listin Diario details that the benefit of this is that an increase in liquidity could be advantageous in the result of a financial crisis on the world markets. Bank administrator Rafael Camilo made the declaration on the status of banks during a press conference to discuss the Dominican banking structure, a variety of economic indicators and monetary policy. According to Camilo, banks made RD$12 billion in earnings, RD$2.6 billion more than in 2007. He said banks paid RD$3 billion in taxes in 2008. He also explained that credit increased by 17.2%. Bank solvency rate also recorded an increase of 1.4%, realizing 14.5 in 2008

purchase of property in the Dominican Republic

Thank you for your interest in our services. We would be more than happy to assist you in the purchase of property in the Dominican Republic. For general information on buying real estate in the Dominican Republic, please refer to our articles on that subject found in our website www.drlawyer.com . You may go directly to them by clicking here: http://www.drlawyer.com/txt/articlesreal.html .
 
As an initial advice we recommend all of our clients to not have any monies wired to the seller before our attorneys have either conducted the due diligence on the property and/or a promise of sale has been signed conditioning the final sale to the due diligence findings. Please obtain a copy of the Certificate of Title from the seller in order for us to begin the title investigation.
 
As for fees, our standard fixed fee for real estate purchases ranges from 0.1% to 1.0% of the gross purchase price, depending on the value of the transaction. Our fees for purchases below $500,000 US is 1% with a minimum fee of US$850 for cash purchases requiring only one contract and US$1500 for purchases requiring more than one contract. The fixed fee covers the following: (a) title investigation and due diligence, (b) negotiation, preparation, authentication and recording of the deed of sale, (c) short-term escrow services and (d) obtaining from the Internal Revenue Department an appraisal of the property purchased in order to ascertain the amount of transfer taxes to be paid, (e) payment of taxes, (f) recording of the deed of sale at the Registry of Titles, and (g) obtaining the Certificate of Title in the name of the buyer.
 
Not included in the fixed fee are transfer taxes (approx. 3.1% of appraised value), surveyor’s fees ($150+ depending on the size of the property) incorporation costs ($1400 + depending on the capitalization), fees and expenses related to the representation of the client by power of attorney in case the client will not be present at closing ($250). We strongly recommend using a corporation for the purchase for the reasons found in our website article. Legal fees in the Dominican Republic are subject to a 16% service tax. 
 
Finally, we would be most grateful, if you could take a second of your time and fill out this quick four-question Prospective Client Survey by clicking on the following link or pasting it on your browser’s address bar.

http://www.surveymonkey.com/s.aspx?sm=9XNkUvId0fX992xoYqFuDg_3d_3d
 
Respectfully yours,
DanDannyDaniel Hussmann
1-829-644-8094
www.drparadise.com
Skype Address – dlhussmann
Las Terrenas, Samana, Dominican Republic

Agreement with a AAA Prime Bank in NYC

Wanted to let you know we have been able to reach an agreement with a AAA Prime Bank in NYC. This is not a local lender. They offer three types of mortgages: purchase, refinance and cash out (sorry no construction loans). Offer is limited to U.S., Canadian & UK citizens. See the below requirements.

  • The property must have a clear title. If the title is not available, the buyer can be approved and the file held until the title becomes available.
  • Completely filled application (lender application form)
  • Signed credit report release form
  • 2 years full tax returns
  • Most recent four (4) pay statements
  • Most recent asset statements (ex. Stocks, 401k, brokerage account, etc.), must include support documentation
  • Minimum loan is $150,000.
  • LTV is 70% of appraised value, meaning if the property appraised at $250,000, the most they would finance is $175,000.
  • The loan will be a 30 year mortgage fixed for 5 years at 7.95% that changes to an ARM (Adjustable Rate Mortgage) for the final 25 years. Prepayment penalty in place for the first 5 years that begins at 5%, and reduces by 1% per year until the end of the 5th year.
  • Buyer should know within 72 hours about the loan status once the documents are in the lender’s hands.
  • Fee structure – lender charges a 2% origination fee, we are paid by the lender. Based on the above example total mortgage fees would be $3,500.
  • Mortgage Insurance is NOT required
  • Property Insurance IS required (obtained by the borrower)
  • Property should be within a gated community
  • Americans and Canadians can write off the loan interest on their income tax.

The lender is interested in moving fast and if the buyer is qualified should have their loan in about 30 days. If you have someone who requires a mortgage please let us know, we can help you make your sale.
Regards

Larry Rogers
Dominican Mortgage Broker C por A
Oficina #203, Calle Alejo Martinez
Sosua, El Batey, Puerto Plata DR
Ph: (809) 571-3161
Internet Ph: (772) 539-9662
Fax: (809) 571-4009
E-Mail: info@dominicanmortgagebroker.com
Internet: www.dominicanmortgagebroker.com

Posted in Legal. 1 Comment »

LOAN REQUIREMENTS, BANCO POPULAR, DOMINICAN REPUBLIC

LOAN REQUIREMENTS

BANCO POPULAR

 LAS TERRENAS, SAMANA PENINSULA, DOMINICAN REPUBLIC

8 November, 2007

With Cedula (residency card):

<!1.     Bank statements from last year (not required if banking with Banco Popular)

<!2.      Passport

<!3.       A letter from purchaser asking for the loan

<!4.       Met Jaime the bank manager

<!5.       Financial statement from accountant showing Net Worth

<!6.       Appraisal done by bank appointed appraiser. Bank Manager accompanies. (+/- $150.00 USD)

Without Cedula: all the above plus…

<!1.       Last income tax statement

<!2.       International credit report from TransUnion (´Express¨ prices are more)

a.       United States                US$  20.00

b.      Europe                                US$180.00

c.       Spain                                US$100.00

d.      Latin America                US$125.00

e.      Caribbean                US$250.00

Banko Popular loans 80% of the value of the property so expect to pay 20% down

Interest rate at time of this writing is 9.0% USD and 13.95% Peso

This is for a 20 year note

DanDannyDaniel L Hussmann

DR Paradise Realty

829-644-8094

http://www.drparadise.com