Deposit before contract?

My advice is never ever hand over money in this country until you have in your hand what you expect to gain from the exchange, or a contract of some sort guaranteeing you will recieve. It is Normal to pay 2 months rent deposit and one months rent up front, I have never heard of anyone paying 4 months deposit upfront (not to say some do require that, but its excessive IMO), and certainly not on a promise.
Things here have a habbit of not happening in situations where trust is required, not that it won?t eventually materialize (but not surprising if it does go pair shaped), just that once they have what they want (your money) then the motivation to be of assistance or work hard or work at all for you deminishes or even vanishes. I?d never hand over a pesos here unless I had what I wanted in my hand firstly.

It is normal in my experience to go to the ofiice, sign the contract, meet whoever will be collecting the rent (if indeed it is collected) sign agreements between the three of you then the agent goes to get the contract legalized/stamped then money exchanges hands. If you are reserving from outside the country then I?d never do that unless with a private landlord I knew to some extent, or with a company I was directed to via a friend who knows them.
I don?t trust anyone here as far as money goes, especially real estate agents, there really is no need to put yourself in that position, there is ample property here, it is a renters market, spin a bottle and you will find what you want.

my 2pense!

What's the name of the real estate agent?

mayac53 said:

Hello,
I'm moving to Santo Domingo in September 2013 and the Real Estate company has asked me to pay four months deposit, without signing a contract or a written agreement that reserves the apartment. Is this typical? I just want to get something in writing. I welcome your suggestions.

Thank you

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Dont hand over 1 cent until a contract is drawn up to your approval. Even then, normal is 2 months deposit and 1 month commision. Might even be a law about that.

Dont be forced into handing over money without a contract. You will lose every cent you hand over.

Maya would you hand over money in your own country without having a signed contract first? Probably not so why would you do it in a 3rd world country?

Well, reading all that comments ,I have to explain how its normally worked out in Santiago when people rent from my company. We own and rent out 60 condos.

When the client has made his decision to rent the condo he pay 2 month deposit and 1 month commission. Additional Peso 1500 for the contract. He get one receipt for the deposit and one for the commission and contract.By that time we have all information about the client and check him up in the data credito.
If he pass the check the the contract will be written and sign. If he dont pass the check up he get his money back but have to pay 300 Peso for the check up in data credito.
You never get a contract the same moment you pay the deposit and the commission, only a receipt.

As far as my information goes (recent as of this weekend, but limited to private rental in Santo Domingo), it has become more and more normal to ask for 4-6 months rent as a deposit against people wrecking the apartment, walking away without paying, etc, etc... this is strictly for La Capital where people don't know each other.

In smaller towns or between people that know each other 2 months deposit is still the norm.

This has been happening in the last year or so.

Trust no one...especially lawyers and real estate agents! And don't rent anything sight unseen! Be more cautious than you nomally would. Honestly, it's just not an honest culture. I love it here but you need to be really smart and careful! I know this sounds paranoid but I've been lucky and seen bad things happen to others not to me...

Even though I wouldn't give the money up front, I have to say that it is more common every day to ask for deposit before the contract. The reason? well, they use that money to solve any problem with the house or apartment (painting, outstanding balances on services, fixing stuff). Of course, they were supposed to do that with the deposit left by the former renter, but usually people here "vive los depositos" which means they live the last 2 or 3 months without paying rent to make sure the owner doesn't keep the deposits. Yeah, unfortunately "don't trust anyone" is the name of the game around here.

mayac53 said:

Hello,
I'm moving to Santo Domingo in September 2013 and the Real Estate company has asked me to pay four months deposit, without signing a contract or a written agreement that reserves the apartment. Is this typical? I just want to get something in writing. I welcome your suggestions.

Thank you

Click to expand...

Interesting! Things are done upside down,hein! Very interesting, indeed!

The problem with renting out to foreigners is that they seldom have credit score in data credito. Often they don't have a guarantee too. We are very carefully to rent out to foreigners because they do not or will not understand the rules regarding renting in DR. Its not just renting, you have to got a contract with Corasan for water, with EDE for electrify, and you have to close this contracts when leaving. Many foreigners think just because it is DR they just can show a bundle of Dollars to get a contract.

Never fork over money without a contract, period.

You should start walking away fast from that Real Estate Company. Look for other apartments and companies.





Regards,

PJT

I just rented a new house in Santiago and I transferred money, 2 months deposit, 1 month adelantado (this company doesn't collect commission) and I didn't sign the contract until 4 days later.

SHALENA

That 4 to 6 month deposit is reserved for some foreigners who don't have a Dominican Co-signer, or Garantor, for the home/apt.,/condo.
"By Law", the deposit is to be deposited in a special account in Banco Agricola, and returned, with the interest, when you leave, minus any damages caused by the renter.
The reality is, there is never any deposit made, and you better "Live Out" the deposit, as you will never see a "Peso" of it again.
Also, you need to check with the electric company,water company, and Internet/cable TV/ telephone providers, as if the accounts have not been "Paid In Full", and closed.
YOU will be responsible to pay them, BEFORE you can get their services.
Welcome to "Paradise".
"LOST"!!!!!!!!!!!!!!!!!!!!!!
CCCCCCCCCCCCCCCCCCCCCCCCC

Maya, you are getting wonderful advise, I wish you all the best on your move.

DONT HAND OVER A PENNY UNLESS A CONTRACT IS SIGNED , AND THAT YOU ARE NOT RESPOSIBLE FOR ANY ARREARS IN WRITING . HAVE THE DEPOSIT ESCROWED !!! You will never get it back !

kampinge said:

The problem with renting out to foreigners is that they seldom have credit score in data credito. Often they don't have a guarantee too. We are very carefully to rent out to foreigners because they do not or will not understand the rules regarding renting in DR. Its not just renting, you have to got a contract with Corasan for water, with EDE for electrify, and you have to close this contracts when leaving. Many foreigners think just because it is DR they just can show a bundle of Dollars to get a contract.

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Guarantors in NYC need to prove their financial strength...
Foreigners need to prove an annual income of 80x the rent.... US citizens get a break, just 40x

The only way around it to post 1year's rent in advance....plus, plus, plus

Criss Colon said:

That 4 to 6 month deposit is reserved for some foreigners who don't have a Dominican Co-signer, or Garantor, for the home/apt.,/condo.
"By Law", the deposit is to be deposited in a special account in Banco Agricola, and returned, with the interest, when you leave, minus any damages caused by the renter.
The reality is, there is never any deposit made, and you better "Live Out" the deposit, as you will never see a "Peso" of it again.
Also, you need to check with the electric company,water company, and Internet/cable TV/ telephone providers, as if the accounts have not been "Paid In Full", and closed.
YOU will be responsible to pay them, BEFORE you can get their services.
Welcome to "Paradise".
"LOST"!!!!!!!!!!!!!!!!!!!!!!
CCCCCCCCCCCCCCCCCCCCCCCCC

Click to expand...

CC,
The house I previously rented I lived out the deposit. She called me and told me I couldn't and I basically said "watch me" and she asked me why and I told her that I did not expect to receive my deposit back from them and if I did it would probably take forever so I was doing it my way. She got upset and said that I take too mch advice from people and that she wasn't a delincuente!
I said that I didn't think she was a delincuente, I'm just living in DR and doing what any Dominican would do. I then told her good luck on selling the house as I heard it had been on the market for 2 years empty before I rented it

SHALENA

"Good For You" Shalena!
One can NEVER go too far wrong, anticipating the dishonesty of a Dominican!
I, and many other expats, use the "Hand To hand" rule to survive here!
If you are buying anything, have it in your hand, Before you pay!
If you are selling anything, have the money in your hand, Before you give custody!
CCCCCCCCCCCCCCC

I once broke a 12 month contract by leaving 1 month early and I also got my deposit back before moving out. I simply asked the property owner which cost more the return of my deposit or fines from edenorte for stealing electricity? His reply was what is your bank account # and next day my full deposit was in my account.....Lol