ADR (Average Daily Rate)

Acto de Venta

The final deed of sale, signed before a notary, that transfers legal ownership from seller to buyer. The equivalent of a closing deed in the US system.

Apartamento Turístico

A tourism-classified apartment, often qualifying for CONFOTUR tax incentives. Classification affects both tax treatment and permitted rental use.

Bien Inmueble

Legal term for real property (land and anything permanently attached to it). Used in all formal documents and title registrations.

Cap Rate (Capitalization Rate)

Net Operating Income divided by purchase price, expressed as a percentage. A 7% cap rate on a $300,000 property means $21,000/year NOI. Standard benchmark for comparing investment properties.

Cash-on-Cash Return

Annual pre-tax cash flow divided by total cash invested. Accounts for financing costs, unlike cap rate. More relevant metric for leveraged buyers.

Certificado de Título

The official title certificate issued by the Title Registry (Registro de Títulos). The gold standard of DR property ownership — if a property doesn't have one, treat it as a red flag until it does.