property titles La Estancia Golfresort

Nov 17, 2007
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Good morning,
Not sure if this post should be in legal or realestate.
In 2006 I signed a contract and paid in full for a condo in La Estancia en La Romana.
After this the bank seized the plot under the condos which it had as a guaranty from the developers.
Now a new company was founded by the developers which seems to have paid for the land and offers the "owners" to pay 20T, sign a new contract and then finally obtain our titles.

This situation is a bit desperate , because I guess who doesn't pay looses his condos totally.

You comments pls (without the typical : you should have done this or that, which I am aware of)

rgds,Edwin
 

Cdn_Gringo

Gold
Apr 29, 2014
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That's the risk you take when purchasing property that hasn't been built yet. If the old company with which you have a contract is dissolved then any new company (even if the executive is made up of the same people) is a new deck of cards. If management for this new company hasn't changed, you should by this point be very wary of adding more money to the pot unless there are clear signs that construction is underway and advancing at a good clip.

It's not a good feeling to lose one's speculative investment. It's an even worse feeling to throw more money at the problem in an attempt to salvage the first only to remain in the same spot of bother. It's similar to a gambler's mentality, they've lost the wad so borrow some more in the hopes that their luck will change and of course it never does.

That request for more money from the developer needs to come with a pretty solid guarantee of performance. If not, then one has to assume that the 2nd infusion of cash is also at risk of disappearing.

A lawyer's opinion is certainly called for. I'm sure they will tell you that you could be more damned if you do and and just as damned if you don't.
 

SKY

Gold
Apr 11, 2004
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I have said it here before and I will say it again. "Do not buy any Real Estate here that you can't pay for in the morning, and move in in the afternoon."
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
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South Coast
Good morning,
Not sure if this post should be in legal or realestate.
In 2006 I signed a contract and paid in full for a condo in La Estancia en La Romana.
After this the bank seized the plot under the condos which it had as a guaranty from the developers.
Now a new company was founded by the developers which seems to have paid for the land and offers the "owners" to pay 20T, sign a new contract and then finally obtain our titles.

This situation is a bit desperate , because I guess who doesn't pay looses his condos totally.

You comments pls (without the typical : you should have done this or that, which I am aware of)

rgds,Edwin

Was the condo built? Do you have physical possession of it?
 

Cdn_Gringo

Gold
Apr 29, 2014
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It's the classic investment hustle we see in a lot of the developing world. Take advance money from foreigners, perhaps put up a few buildings but never finish them, declare insolvency (absconding with the bulk of the cash) and turn everything over to the bank which usually has first dibs on assets. After a period of time, reorganize the company and buy the property back from the bank for pennies on the dollar. Approach the old investors and a flock of new investors with a means to salvage their investment or buy in at a great great discount as a means to rake in even more cash.

When the 2nd round of financing dwindles to a trickle, poof, low and behold, still no community to move into and company #2 is done. We might be able to watch this scenario play out in real time on the outskirts of Sosua as all the prerequisites appear to be in place - nice pictures, a grandiose vision and more promises than you can shake a stick at. Without however, an economy that can attract and support such an enclave and a limited local population that can afford to buy there. There is nowhere near enough money available to duplicate the enticing artwork and actually create anything approaching the dream. I believe we are still waiting for a backhoe to show up.
 
Nov 17, 2007
65
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Hi everyone,

Thanks for all the answers and sorry for responding so late.
1) 20T= 20.000 US Dollars.
2) The payment and initial contract was done in 2006, around 2009 the building was finished and since then we are using the condo or renting it out, no problem there.
3) no lawyer contacted yet because I just got the mail about the payment after years of asking for the title.

The delay wasn't due to the construction, but due to the fact that the developers gave the land under the condo complex as a guaranty to the bank and when they failed to pay the bank frozen the process somehow.
5 of the total 9 planned building were finished and up and running.
 

Cdn_Gringo

Gold
Apr 29, 2014
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I do not understand why it takes so long to get titles in this country, but apparently it does much of the time. At least you got your condo. Those left hanging onto the 4 unfinished buildings are probably feeling a tad more miffed. It seems to be much too easy for developers to fall short of their promises and obligations and just walk away if they are inclined to do that.
 
Nov 17, 2007
65
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Actually some of the developers owns an apartment (also without the title I guess) and lives there.
I think they just expected to sell all buildings which they didn't and were caught up in the crisis, and try to save the properties for all owners, so I see no bad faith from their part.
I am just shocked about the 20T and trying to be 100% sure that if payments will be made, the titles this time really become a reality.
 

Matilda

RIP Lindsay
Sep 13, 2006
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Spoke to lawyer husband and he says get a decent lawyer - if you can find one - and they can negotiate that figure way down. Also suggests payment on receipt of title not before.

Matilda
 

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
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www.drlawyer.com
This is a quote from the Guzmán Ariza website article on buying real estate:

"Many attorneys (solicitors) and notaries in the Dominican Republic do not protect the buyer adequately in the Promise of Sale. Among the most common deficiencies are the following:

(a) The buyer is allowed to pay a large percentage of the price of sale without any security or direct interest over the property. In case of misuse of these funds, the buyer’s remedies may be limited to suing the seller personally. Many condo buyers in Santo Domingo have suffered through this experience in the last few years. Generally, the developer uses the buyers’ funds, along with a bank loan, to finance the construction. The bank collaterizes the loan with a mortgage on the property. If the developer runs into financial difficulties or misappropriates the funds, the bank forecloses and the buyers lose both their money and Atheir@ property."
 
Nov 17, 2007
65
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Thanks for the article Mr.Guzman.
Seems I am in another chapter now where the developers rescued the project from the bank under a new company and offer the original buyers to rescue their condos.
Condos that that the buyers use and live in, but only having original contrato de compra as a proof of ownership.
What are the steps you suggest :
Sign a new contrato de compra to get the title (try to lower the rescue sum) and pay on delivery ?

Thanks for your advice



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