The Importance of Proper Guidance in Choosing the Corporate Structure for Your Apartment in the Dominican Republic, Especially if You’re a Foreign Investor

When buying a pre-construction property, it's essential to carefully consider the legal aspects involved.
alterlegal

When buying a pre-construction property, it’s essential to carefully consider the legal aspects involved. Here are three key considerations to bear in mind:

 1. Review the Purchase Agreement Thoroughly

 The purchase agreement is the cornerstone of your pre-construction investment. Make sure to:

  • Understand the Deposit Structure: Determine how much needs to be paid upfront and how the remaining payments will be structured.
  • Delivery Date and Penalties: Ensure the agreement specifies a reasonable timeline for delivery and outlines penalties or remedies if the developer misses deadlines.
  • Amendments and Cancellation Clauses: Look for clauses that outline conditions under which the developer or buyer can amend or cancel the contract.

 2. Check the Developer’s Reputation and Track Record

  Before entering into a pre-construction deal:

  • Research Past Projects: Evaluate the developer’s previous projects for quality and timeliness.
  • Read Reviews: Check customer reviews and news articles for any past issues or legal disputes.
    • Verify Licensing and Permits: Ensure the developer has the proper licenses and permits for the project, indicating compliance with local laws and regulations.

 3. Understand the Financing and Closing Process

   Financing a pre-construction property can be different from other types of real estate transactions:

  • Mortgage Pre-Approval: Some developers require buyers to have mortgage pre-approval, so be prepared to present this document.
  • Interim Occupancy Fees: Understand that before the final closing, you may have to pay these fees if the property is ready to be occupied but not yet fully transferred to you.
  • Adjustments and Closing Costs: Ensure you understand the various adjustments and costs, such as development charges, taxes, and utility connections that will need to be paid upon closing.

Each of these considerations plays a crucial role in ensuring your pre-construction purchase is legally sound and protects your interests. Consulting with a real estate lawyer can help you navigate these complexities and ensure a smooth transaction.

More Posts

alterlegal

Benefits of CONFOTUR

CONFOTUR aims to develop less-served tourist areas in the Dominican Republic and promote environmental protection in those regions.

Send Us A Message

Miguel Brache

Law Degree from Pontifica Universidad Católica Madre y Maestra (PUCMM) and holds a Master’s Degree in Financial Markets Law also from PUCMM. Expert in Civil Law, Real Estate, Corporate Law, Economic Regulation, and Administrative Law. He has extensive experience in private practice in business law, litigation and conflict resolution.

alterlegal

Jose A. Fernández C

A graduate of the Universidad Iberoamericana (UNIBE) in Santo Domingo. Holds a Masters Degree in Arbitration, Alternative Dispute Resolution, and Mediation from the European Institute of Tax Consultancy, Granada, Spain, and a Master Degree in Corporate Law from Pontificia Universidad Católica Madre y Maestra (PUCMM). Expert in Real Estate Law, Corporate Law, Business Law, Conflict Mediation and Tax Advisory. He also has extensive knowledge in Contract Law, Foreign Investment, and Tourism Law. Member of the National Association of Young Entrepreneurs (ANJE).