 |
| Dominican Lawyers |
Law Number 596, enacted on October 31, 1941, establishes a special system for conditional real estate sales and in the rule contained in Article One expressly states that: For the purposes of this Law, a conditional sale is one in which It is agreed that the property right is not acquired by the buyer until all or a certain portion of the price has been paid, or any condition indicated in the contract has been fulfilled.
In these cases of conditional real estate sales, the buyer assumes the enjoyment of the property from the moment of sale, unless otherwise agreed. It is good to indicate that if the buyer promotes improvements in the property object of this contract, and the sale is nullified due to the breach of the obligations contracted by the buyer, these improvements will be computed in favor of the buyer. However, the seller may acquire them in preference to any other person, with a discount of twenty percent (20 % ) of the value at the time the resolution occurs.
In this same order of ideas, the rule provided for in the Sole Paragraph of Article 16 of said Law on Conditional Real Estate Sales states that: This purchase option will last for a term of two years in favor of the seller. In such a way that the buyer can pay the entire sale price as long as the conditional purchase agreement has not been canceled. If you pay, you acquire full ownership of the property.
The norm contained in Article 98 of Law Number 108-05, of Real Estate Registry, addresses what is related to the conditional sale and the registry block when it says verbatim that: The conditional sale of real estate is registered in the complementary registry of the Certificate of Title ; this registration generates a registry lock and prevents the registration of the act of disposition.
The Title Registry will grant a registration entry and will record in the Complementary Registry the essential information contained in the notarial act that supports the conditional sale, after payment of taxes, fees or special contributions, and all the documentation, including the duplicate of owner of the Certificate of Title, will remain in the registry file. The corresponding Registrar of Deeds will certify receipt of said duplicate.
Any person with a legitimate interest may request the Title Registry to issue a registration certificate stating whether or not there is a conditional sales contract. The cancellation of the registration entry may be requested by the seller, the buyer or their successors in title, by means of proof that they have fulfilled the obligations stipulated in the contractual act or that the seller expresses their consent for the cancellation to take place.
An important element to highlight is that if when making its qualification, the Title Registry has doubts in relation to the proof presented by the buyer or his successors in title in his claim to obtain the cancellation of the aforementioned entry, he can request the express acquiescence of the seller to the regard. The Registrar of Titles, after the favorable qualification of the file, will proceed to the final registration and will issue the new duplicate Certificate of Title to said buyer.
Another important element to note is that if the resolution of the sale occurs because the established conditions are not met, the Registrar of Deeds may not execute the cancellation of the registration entry without verifying that the seller has made the return of the payment in full. of the established proportional sum, depending on the case, it may be less than sixty percent (60 % ) of said values.
In this same tenor, the cancellation may be made when the thirty days of the term for this payment to be made have elapsed. In the latter case, the Registrar of Titles will register a mortgage on the property in favor of the buyer, for the amount of the sum owed and will record it in the Complementary Registry. Consequently, it is opportune to conclude that the conditional real estate sale generates a registry block; therefore, any act of disposition such as: transfer, mortgage, assignment, among others, will be null. However, the notation or registration entries ordered by the competent authority may affect a property that is subject to the special conditional sale system.
