Best Due Diligence Lawyers in Salvaleón de Higüey

About Due Diligence Law in Salvaleón de Higüey, Dominican Republic

Due diligence in Salvaleón de Higüey is the process of verifying legal, fiscal, regulatory, technical and commercial information before completing a transaction or investment. It is most common in real estate purchases, hotel and tourism projects, mergers and acquisitions, joint ventures, lending, and supply or distribution agreements. In the Dominican Republic, due diligence is shaped by national laws that apply locally in La Altagracia province, together with procedures carried out at provincial offices in Higüey such as the Registry of Titles and the Chamber of Commerce. A well planned review typically covers title and encumbrances, corporate standing, tax compliance, environmental and zoning permits, labor and social security liabilities, intellectual property and contract rights, as well as anti money laundering checks. The goal is to identify risks, quantify them, and set conditions, protections and pricing that reflect the true status of the asset or company.

Why You May Need a Lawyer

A local lawyer helps you navigate Dominican rules, confirm the authenticity of documents, interface with public registries, and negotiate protections in your contracts. Buyers and investors typically engage counsel when purchasing homes, land or hotel assets in Higüey and nearby Punta Cana and Bávaro, when acquiring or investing in Dominican companies, when financing projects with Dominican collateral, or when entering long term leases and management agreements. Lawyers coordinate certified title searches and cadastral reviews, obtain legal status certificates, confirm that a parcel has a proper individual survey and boundaries known as deslinde, check for mortgages, liens and litigation, verify that a company is properly incorporated and in good standing, evaluate tax exposures, and ensure compliance with anti money laundering rules including source of funds. They also adjust transaction structures to benefit from tourism incentives or other tax regimes when available, and draft indemnities, holdbacks and escrow arrangements to protect you.

Local Laws Overview

Property and title regime. Real estate is governed by Law 108 05 on the Real Estate Registry and its regulations. Transfers are registered with the Registro de Títulos for La Altagracia, located in Higüey, after taxes are paid to the tax authority known as DGII. A modern survey and boundary determination known as deslinde is required for most transfers. The Cadastral Survey Directorate reviews and approves surveys before registration. Buyers should request a Certificación de Estado Jurídico to confirm ownership and encumbrances, as well as copies of the survey plan and parcel history.

Condominiums and homeowners associations. Condominium properties are governed by the Dominican condominium law and regulations. Review the declaration, bylaws, minutes, budgets and any liens affecting common areas, plus verification of the administrators legal standing.

Corporate law. Corporate due diligence relies on the General Law of Commercial Companies and related regulations. Companies register with the Cámara de Comercio y Producción de La Altagracia in Higüey and obtain a mercantile registry certificate. Review bylaws, shareholder and board minutes, share registry book, powers of attorney, beneficial ownership disclosures when applicable, and compliance with publication and filing duties.

Tax considerations. The Dominican Tax Code and DGII regulations apply. Real estate transfers are generally subject to a transfer tax calculated on the higher of the contract price or the fiscal appraisal. Sellers may be subject to capital gains tax. Annual real estate property tax known as IPI can apply above a threshold set each year. Transactions may also involve notary fees and registry fees. Specific tax treatment varies for share deals, asset deals, leases, financing and cross border transactions, so tax advice is important.

Anti money laundering. Law 155 17 on anti money laundering and counter terrorist financing requires customer due diligence by obligated subjects, including real estate brokers, financial institutions and notaries. Expect to provide identification, source of funds documentation and corporate ownership information. Non compliance can delay closings or lead to rejections.

Environmental and zoning. Law 64 00 on the environment requires permits or environmental assessments for many projects, especially tourism, industrial and coastal developments. In beachfront areas, uses within the public maritime zone require special concessions. Verify municipal zoning and construction permits with the Ayuntamiento de Salvaleón de Higüey and sector regulators, and confirm that any environmental licenses are current and match actual operations.

Labor and social security. The Labor Code and the social security system administered through TSS govern employment. For corporate deals, verify payroll compliance, accrued benefits and severance exposure, contributions to TSS and INFOTEP, and the status of any labor claims.

Notaries and formalities. Notarial Law sets formal requirements. Real estate transfers and many corporate acts must be executed before a Dominican notary. Foreign documents typically require apostille or consular legalization and sworn translations into Spanish by a certified translator for use in Dominican registries.

Tourism and investment incentives. Tourism projects in the province may qualify for incentives under the tourism promotion framework known as CONFOTUR, which can grant significant tax exemptions. Review eligibility early because incentives influence structuring and due diligence scope.

Frequently Asked Questions

What is due diligence and when should I start it

Due diligence is a structured review of legal, financial, tax, technical and regulatory matters before committing to a deal. Start it as soon as a term sheet is signed, and include conditions in your agreement so you can walk away or renegotiate if material issues are found.

Can foreigners buy property in Salvaleón de Higüey

Yes. Foreign individuals and companies can own Dominican real estate with the same rights as locals. You will need valid identification, tax registration with DGII if required, and apostilled documents for any corporate buyers.

What documents should I review for a property purchase

Request the title certificate, the legal status certificate showing liens and encumbrances, the approved survey plan and proof of deslinde, the sellers ID or corporate documents, tax receipts, condominium bylaws if applicable, municipal and environmental permits if there are structures, utilities contracts and payment histories, and any lease or management agreements tied to the property.

What is deslinde and why does it matter

Deslinde is the approved individual boundary determination of a parcel. It is processed through the real estate jurisdiction with cadastral surveyors and is required for registering most transfers. Without a proper deslinde, closing and registration can be delayed or rejected.

How do I check for mortgages or liens on a property

Your lawyer requests a Certificación de Estado Jurídico from the Registry of Titles for La Altagracia. This certificate shows the current owner, recorded mortgages, seizures, litigation notices, easements and other encumbrances affecting the parcel.

How long does due diligence take in Higüey

Timeframes vary with complexity. A straightforward residential property can often be reviewed in 10 to 20 business days. Hotels, large developments and corporate acquisitions can take 4 to 8 weeks or longer, especially if third party permits or historical records must be obtained.

What taxes and fees should I expect on a real estate purchase

Expect a property transfer tax, notary fees, registry fees and incidental costs such as certified copies and translations. Sellers may owe capital gains tax. Ongoing annual real estate tax can apply above a threshold. Exact percentages and bases change periodically, so obtain a current written estimate from counsel or a tax advisor.

How is corporate due diligence performed in the Dominican Republic

Lawyers review the mercantile registry extract from the Higüey Chamber of Commerce, bylaws and amendments, shareholder and board minutes, share registry book, financial statements, major contracts, licenses, labor and social security compliance, tax filings and debts with DGII, litigation searches, intellectual property registrations and beneficial ownership disclosures when applicable.

Are escrow accounts and title insurance available

Escrow arrangements are commonly used to hold deposits and closing funds subject to clear conditions. Title insurance is available through specialized providers operating in the Dominican market. Your lawyer can coordinate both and align them with your closing checklist.

Do I need to apostille or translate foreign documents

Yes when foreign documents will be filed with Dominican authorities. Documents from countries in the Hague Apostille Convention should be apostilled. Non Spanish documents typically must be translated into Spanish by a court certified translator in the Dominican Republic.

Additional Resources

Registro de Títulos de la Provincia La Altagracia in Higüey. Provides title certificates, legal status certificates and registration of transfers and liens.

Dirección Regional de Mensuras Catastrales for the Eastern region. Reviews and approves cadastral surveys and deslinde plans.

Cámara de Comercio y Producción de La Altagracia in Higüey. Issues mercantile registry certificates and records company formations and changes.

Dirección General de Impuestos Internos known as DGII. Manages tax registrations, transfer taxes, property taxes and tax compliance certificates.

Ayuntamiento de Salvaleón de Higüey. Handles municipal licenses, zoning, land use and construction permits within the municipality.

Ministerio de Medio Ambiente. Oversees environmental licensing, impact assessments and compliance, particularly relevant to tourism and coastal projects.

Ministerio de Turismo and CONFOTUR. Administer tourism sector regulations and incentives for qualifying projects in La Altagracia.

Tesorería de la Seguridad Social known as TSS and INFOTEP. Key for verifying labor and social security compliance in corporate reviews.

Colegio de Notarios de la República Dominicana. Professional body for notaries, helpful for confirming a notarys credentials in the province.

Professional surveyors and appraisers registered with the real estate jurisdiction. Essential for independent technical validation of surveys and valuations.

Next Steps

Define your objectives and timeline. Clarify whether you are buying property, acquiring a company, entering a joint venture, lending, or securing a long term lease, and set a realistic schedule for reviews and approvals.

Engage a local lawyer in Salvaleón de Higüey or the surrounding area. Seek counsel with real estate and corporate experience in La Altagracia, familiarity with the Registry of Titles and the Chamber of Commerce, and strong anti money laundering practices. Request a written scope, timeline and fee proposal.

Collect preliminary documents. For real estate gather title certificate, survey plan, seller identification or corporate documents, permits and any leases. For companies gather corporate bylaws, minutes, mercantile registry certificate, financials, major contracts, payroll and tax filings. Ask for authorizations to obtain official certificates.

Plan independent checks. Authorize your lawyer to request official certificates from registries, order a title search, verify cadastral data, check DGII for tax debts, confirm TSS compliance, and review municipal and environmental permits. Commission independent technical inspections where necessary.

Structure protections. Use a term sheet or purchase agreement that includes due diligence conditions, representations and warranties, indemnities, holdbacks, escrow and specific deliverables such as tax clearance and no lien certificates.

Prepare funds and compliance documents. Coordinate proof of funds, KYC and source of funds documentation for banks, escrow agents, notaries and brokers in line with Law 155 17 requirements.

Close and register. After satisfying conditions and paying applicable taxes and fees, sign before a notary, submit to DGII for tax processing, then file with the Registry of Titles or the mercantile registry for corporate acts. Keep certified copies and registration receipts.

This guide is for general information only. Local facts and regulations can change, and each case is different. Consult a qualified Dominican lawyer before taking action.