Illegal condo developments mean no titles for condo buyers in Cabarete

ADECA

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If you are thinking of buying a condo in a new development in Cabarete, or if you already have and are still waiting to get your title, and if you read Spanish you should read this article Oportunistas siguen burlando los reglamentos del Plan del Ordenamiento Territorial de Cabarete | Cabarete noticias. If you don't read Spanish I will describe what you need to know. There actually are building and zoning regulations in Cabarete and these were most recently codified in the presidential decree 947-09 of 2009 that approved the new zoning and building regulations for Cabarete. The problem is many of the condo developers preferred not to comply with the regulations and not get proper permits from the proper folks in the Ministry of Tourism, either before or after the decree. Nonetheless, through means one can guess they managed to build their projects. Problem is that when it comes time for the developer to get titles for the condo buyers they need the proper permits, which means going back to the same folks in the Ministry of Tourism that they didn't bother to get approval from in the first place. And these officials take a look a what was built, with no legal permit, and in violation of the building regulations, and they say no dice, no ex-post facto permit for an illegal construction. That would seem to just leave the condo developers holding the bag, bu not so. It seems the developers have been selling these condos with the promise of providing titles. You'd think that the developers would have lawyers that would guard them against building without proper permits, but not so. And you'd think that buyers would have lawyers that would guard them against buying a condo in an illegal building where they won't get a title, but not so. And if you think that going with a big name firm that you'd heard about on DR1 will keep you clear of such problems, think again. Potential buyers should never use the same lawyer as the vendor. Make sure your own lawyer does a proper due diligence, including construction permit search. Astute buyers always keep at least 60% of the purchase funds in escrow when buying a new condo until they are given a final legal title for the property they purchased.

Cabarete is the outdoor capital of the Caribbean. A town that if allowed to maintain its identity as a windsurfing and kiteboarding mecca promises to be a very good place to invest and reside. The building regulations in the Cabarete plan approved by the president are meant to keep it that way.
 

CFA123

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May 29, 2004
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Definitely of concern for the buyers of those properties. Are there any properties at all for which the 4th floors have been titled? Or are all "illegal" as such?

Also, there is a 60 meter setback rule from the ocean. Are there any oceanfront properties on cabarete bay that meet that requirement? Long existing restaurants, bars, hotels, or newer developments such as ocean one, harmony, millenium, etc?
 

ADECA

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I understand Milenium complied with the rules for a fourth floor. It was permitted where Milenium was built if it was set back behind two and three level portions of the building. MITUR accepted the Milenium design.

The Cabarete beach is subject to erosion. Back in 2006-2007 the then Minister of Tourism, Felucho,who had a stake in Punta Goleta approved a beach replenishment project that extended the beach considerably. The last job of the contractos was to sink about 20 posts, white PVC pipes filled with concrete, along the beach, supposedly indicating a new 60 meter mark. At least some of those posts have been washed away as the beach receded again. So it is a moving mark. In theory new buildings should be setback 60 meters from the high tide mark when the building is being built. MiTUR seems to show some flexibility on that considering lines of prior development as well, but there are clearly a few aggregious examples that won't pass muster.
 

CFA123

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May 29, 2004
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Thank you for the response.

I think I remember seeing one of the cement posts near the ocean dream/harmony property line. It was about 5 meters out from their walls. I think it's gone now (if that's what it was).
 

cjp2010

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It amazes me how many people get bit by stuff like this in the DR. I don't know how things work in other countries but in the U.S. buying a condo is a whole legal proceeding that has lawyers involved and title checks are done prior to completing the deal. So you are somewhat protected because you are sort of forced to have someone hold your hand through the process. Some complain about that because you have to pay additional costs for the lawyers and the title searches and everything else. But then we come here where there is less regulation and some people when left to their own devices buy condos without even seeing the title first. That is insane. People, please don't hand over any money to buy a property without seeing and verifying the title first. That goes for illegal condos and legal ones.
 

CaptnGlenn

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Mar 29, 2010
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It amazes me how many people get bit by stuff like this in the DR. I don't know how things work in other countries but in the U.S. buying a condo is a whole legal proceeding that has lawyers involved and title checks are done prior to completing the deal. So you are somewhat protected because you are sort of forced to have someone hold your hand through the process. Some complain about that because you have to pay additional costs for the lawyers and the title searches and everything else. But then we come here where there is less regulation and some people when left to their own devices buy condos without even seeing the title first. That is insane. People, please don't hand over any money to buy a property without seeing and verifying the title first. That goes for illegal condos and legal ones.


Real estate laws in the U.S. vary state by state. By and large, lawyers are not a necessity and real estate is routinely is transferred using only the services of real estate agents or brokers. (Lawyers, though, are often used by experienced buyers, and I personally recommend using one.) Title search and insurance is universally used, but in reality this is a requirement of the LENDER, (mortgage holder) to protect THEIR interests. It's not a legal requirement.

In the D.R. it's a wholly different system. Even the historic basis for property laws is different, being Napoleonic Law vs. English Common Law.
 

sane

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Jun 6, 2013
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Use common sense, and be safe.

It amazes me how many people get bit by stuff like this in the DR (QUOTE)

People spend hundreds of thousands of dollars on a property here, but to save a few bucks, they are happy to use the lawyer offered by the vendor. The vendor's lawyer will never represent the interest of the buyer, and in most cases in the Cabarete area, will actually hide important information from the buyer.

My rule of thumb is, never buy a property that does not have a title. I will than go to the tribunal de tierra and get a certification that the title is real. When buying on plans, always keep at least 60% of the payment in escrow until a title on the buyer name is issued. Most important of all, use a different lawyer than the one offered by the vendor, and instruct the lawyer in case the property is in construction to get copies of the building permit.

Disclaimer: I have four properties in Cabarete, and am looking to buy more.
 

CaptnGlenn

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Some are saying here to only buy if you have title in hand. Good advice if the property is completed. Others say buy only completed projects... also good advice, but not always the way it's done.

Yes, it's a roll of the dice, but if you're dealing with a good, established, well respected, and PROVEN developer, there is the option to buy before the project is completed. The one big advantage is you get to pick the best unit (and also might get a bit of a better price). It's my understanding, (might be different in other areas of the country.. not sure), but in P.C. individual titles are not granted until the whole project is completed and passes inspection. IOW, if you want to buy during construction, you're simply NOT going to get any kind of title until the whole thing is done. In fact... individual titles don't exist, until the thing is done at which time the authorities will change the title covering the whole property and divide into the individual units.

SO... buyer beware... but also be educated.
 

ADECA

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Apr 22, 2009
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But all permits should be in place, and your lawyer should be able confirm that before you buy. Naturally the titles come after the project is completed, but only if all the permits have been granted. Your good deal pre-construction purchase won't look so good if you never get a title.
 

ADECA

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Apr 22, 2009
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A reader has corrected my explantion of the white posts planted on Cabarete beach just after MITUR widened the beach in 2006. The posts were placed to mark the high tide line prior to the addition of the new sand in order to preserve the existing reference point from which the 60 meter building set back was to be measured. The additional sand was not expected to be long lasting. On the eastern end of the bay those markers have been washed away along with the beach. As beach experts contracted by the government have explained, a major factor contributing to this erosion is the massive illegal extraction of sand from the areas east of Cabarete that serve as a source of sand to maintain equilibrium on the Cabarete beach -- a practice that has continued for years with the acquiesence of the Ministry of Environment.