I am a US expat with pending residency and am considering entering into a long-term rental contract with a foreigner not living in the DR. The contract is somewhat unique because it is for tenancy in an unfinished house and calls for an upfront payment for a term of my choice (12 to 36 months) in return for having the house finished to my liking. In addition, there is a reduction in rent charges in return for my services as project manager overseeing the construction finishing. My concern is not knowing what recourse I may have to get refunded money in the event that the term of tenancy is cut short for some unforeseen reason, and there is a period of tenancy that remains paid for under the contract. And, also what is the best way to make sure the upfront monies are utilized as stated in the contract. Any help or insight into the enforcibility of contracts with foreigners would be greatly appreciated.
- Thread starter SLowman
- Start date
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How Enforcible are Contracts?
Is there any chance you can hang on to some of the money & pay the builders yourself? After all, if you're going to be Project Manager you need to have some control. You don't want to be caught 'in the middle' if builder downs tools because he hasn't been paid.......whilst owner maintains he has paid. Two words to remember..........damage control!
I haven't commented on enforceability of contracts because I'm trying to think of solutions whereby you don't get into a position of having to enforce a contract, which can be costly & time consuming, to put it mildly.
I haven't commented on enforceability of contracts because I'm trying to think of solutions whereby you don't get into a position of having to enforce a contract, which can be costly & time consuming, to put it mildly.
I would say that this is a contract that will be very difficult, costly and for the amount of money involved, simply not worth it to try and enforce if things go bad. So, try and do it upfront so that you have a way out.
Suggestions - as a previous poster said, hold the cash in trust at attorneys and release periodically, and secondly, reduce your risk by paying in, in 3 or max 6-month periods in advance (payment schedule or something in the contract) - not all at once. Also do a search in the legal forum, Fabio Guzman has explained what the legal issues are around rental contracts. It is not so easy in this country to evict tenants - as I remember, a renter can be evicted only if the owner wants the property back, or for non-payment of rent. Don't take my word for it, consult a local trustworthy attorney.
Suggestions - as a previous poster said, hold the cash in trust at attorneys and release periodically, and secondly, reduce your risk by paying in, in 3 or max 6-month periods in advance (payment schedule or something in the contract) - not all at once. Also do a search in the legal forum, Fabio Guzman has explained what the legal issues are around rental contracts. It is not so easy in this country to evict tenants - as I remember, a renter can be evicted only if the owner wants the property back, or for non-payment of rent. Don't take my word for it, consult a local trustworthy attorney.
Just say NO. Why put yourself in a position like this. If your question of the owner getting you out before your contract is up, that will be very hard for him to do if not impossible.
It seems to me the real risk here is not so much being forced out prematurely as it is never getting in because the owner doesn't follow through with the funds to complete the work. I wouldn't do it unless I had a VERY high degree of confidence in his integrity and ability to fulfill his obligations.
"In God We Trust!",All OTHERS Pay Cash!!!
Since this is a "Gamble",and you should never gamble with more than you can afford to lose,YOU have to make the decision! Is the proposed payoff worth the risk of your money?You will NEVER be able to afford the money,or the time, to take the other signee to court in the DR,if you even have any "rights" to do so.
Does the deal pass the "sniff" test?
Can you afford to lose your money?
My experience has been: "When A Man With Money goes into business with a man with experience,the man with the experience ends up with the money,and the man with the money,ends up with the experience!!!!!!!!!!!
Since this is a "Gamble",and you should never gamble with more than you can afford to lose,YOU have to make the decision! Is the proposed payoff worth the risk of your money?You will NEVER be able to afford the money,or the time, to take the other signee to court in the DR,if you even have any "rights" to do so.
Does the deal pass the "sniff" test?
Can you afford to lose your money?
My experience has been: "When A Man With Money goes into business with a man with experience,the man with the experience ends up with the money,and the man with the money,ends up with the experience!!!!!!!!!!!
Criss Colon said:My experience has been: "When A Man With Money goes into business with a man with experience,the man with the experience ends up with the money,and the man with the money,ends up with the experience!!!!!!!!!!!
Well said, CC. That is certainly true in the DR.
The thing that wouldn't pass the 'sniff' test for me is being told I can front up either 12 months money, or 36 months or something in between..........if this money is to be used to complete the building to your liking, then do you have to tailor your liking to the amount fronted or what? What if your 'liking' is 36 months worth of money, yet you decide to opt for 12 month contract? Does that mean an unfinished apartment?
Contract Clarification
Thanks for all of your advice. I think I should clarify some things, though.
First, to Lambada: the length and amount of the contract is entirely up to me; 12, 24, 36 months is my call.
For others commenting about the owner ending the contract, that is not my concern. Moreso, if MY status would change for some unforeseen reason and I had to leave early, how would I get the money back from someone who does not live in the country.
I certainly would put the money into a trust with my attorney, whom I trust implicitely, but the money would be spent in a six month period for the finishing of the house, at which time I would be moving in to live there for the specified time.
I should also note that the owner would also be sending money into the trust to complete the house, as the small amount I would invest is not enough to cover the costs. He would be trusting me to utilize that money as needed for the contractor(s).
Thanks for all of your advice. I think I should clarify some things, though.
First, to Lambada: the length and amount of the contract is entirely up to me; 12, 24, 36 months is my call.
For others commenting about the owner ending the contract, that is not my concern. Moreso, if MY status would change for some unforeseen reason and I had to leave early, how would I get the money back from someone who does not live in the country.
I certainly would put the money into a trust with my attorney, whom I trust implicitely, but the money would be spent in a six month period for the finishing of the house, at which time I would be moving in to live there for the specified time.
I should also note that the owner would also be sending money into the trust to complete the house, as the small amount I would invest is not enough to cover the costs. He would be trusting me to utilize that money as needed for the contractor(s).
So the issue from your point of view is not so much one of trust that someone could use your money for other purposes, rather than whether this property will be ready for you at the end of the 6 months?