By Gissel Taveras
El Inmobiliario
SANTO DOMINGO.- Buying a foreclosed property is when you decide to acquire a property that the bank has recovered, either due to non-payment or breach of contract.
According to Inmobiliaria.com, buying a foreclosed property also has its risks, the main one being that there is not enough information about the property, and there is little advice regarding its history, use and maintenance.
Similarly, proper legal advice and related taxes are reduced.
The awarded assets are real estate and properties that become the property of a banking entity, as a result of judicial or extrajudicial actions through payment in kind, which it exercises to obtain the recovery of the financing granted that has not been paid.
Currently, thousands of Dominicans are taking advantage of the opportunities for houses and apartments that have been awarded and put up for sale by banking entities in the Dominican Republic, because some are being offered at affordable prices.
What does "to award" mean?
Adjudicating property is a legal process that aims to assign an asset, or group of assets, to the rightful owners. This process is fully protected by law, and in the case of real estate, it simply involves returning the property that could not be paid for.
To purchase awarded property, you must have a signed purchase request and commitment letter addressed to the bank that has awarded the property, a valid ID or passport, and a deposit of 10% of the purchase value.
The application must contain the property code and description, as well as paragraphs containing the following information: “The applicant” affirms having visited the property subject to sale and verified all its boundaries and adjoining properties, and declares that he accepts and receives it in accordance with the conditions in which it is currently found.
Purchase payment method: "The applicant" authorizes the retention of 10% of their savings or checking account to initiate the purchase negotiation / not applicable if the deposit is by check or cash.
In the case of financing, the applicant must detail the payment method: initial cash payment, which must be greater than or equal to 10% of the sale price, and indicate the amount and term of the financing. The applicant authorizes that, should the property be approved and they withdraw from the negotiation, the initial 10% down payment will be penalized with a 10% reduction of the deposited amount.
Furthermore, property sales may be financed for up to 90% of the sale price. The seller must cover the initial payment, which must be equal to or greater than 10% of the sale price.
The awarded assets range from machinery, vehicles, houses to apartments and villas.
