Lions , Tigers, Contratos oh My - NOT FOR THE FAINT OF HEART

LionKing64

New member
Jun 3, 2020
9
1
3
Michigan
This past summer, I paid a visit to a new residencia project in Punta Cana that was advertising heavy in many of the Spanish news listing. This particular project caught my eye because of the price and proximity to the beach and the Punta Cana airport. Although, the listing stated it was in Barrvaro it was technically in Macao. After some basic fact checking I decided to lay down some funds in the standard $XXX to reserve and a monthly payment plan for the remaining %20. All this was done without a contract in place. After some back and forth for the next 5 months or so a contract "CONTRATO DE PROMESA DE VENTA" was drawn up, that has come real interesting terms in it.

I know many times these contracts contain CYA language but this one is completely one-sided. So in Summary: It says 7 days to pay up or lose your money (%20), 4 days to submit problems with your new house or we don't fix shit. If the value of the dollars go up give us the difference but wait we don't specify what that value is in the contract.

So my first question is: Is this normal or is someone pulling a ridicules joke on me? Any thoughts on this? Any way to get my money back 5k has already been paid? Anyone have any type of experience with this?

Pay me or lose it all
Paragraph I: THE CONSTRUCTION COMPANY will notify THE BUYER by email, or any other means that it deems appropriate, (i) the moment in which each milestone or part of the work that constitutes the corresponding payment condition is verified and (ii) the date delivery of the Real Estate Unit. In each case, THE BUYERS are obliged to make said payment within the following seven (7) frank days from the date of said notification.

Don't be late, or we won't fix shit!
Paragraph II: Delivery Process of the Real Estate Unit.- THE BUILDER will notify THE BUYER with three (3) working days in advance, by email or any other means it deems appropriate, of the termination date of the Real Estate Unit that is the object of this document. Promise Contract. Following this notification, THE BUYER will have a period of four (4) working days to inspect said Real Estate Unit and deliver to THE BUILDER a list of corrections (“Punch List”) with the work to be corrected, if any. To make the corrections contained in the Punch List, THE CONSTRUCTION COMPANY will have a period of thirty (30) days, except that due to the nature of the deficiency and the scope of the repair a different period of time is required, longer or shorter.

Prices go UP and UP, Fuck you Pay Me!

Paragraph V: The parties agree that the price established in this article is based on the cost of all inputs, services, labor, taxes and direct expenses involved in the construction of The Project that have been estimated for the date of Delivery is the thirty-first (31) of the month of January of the year two thousand twenty-two (2022). However, the parties agree that any variation that affects costs affecting the increase in the construction value of homes, such as: those according to the consumer price index published by the Central Bank of the Dominican Republic for the housing sector, or a variation of the dollar premium greater than one point (1.), will be assumed proportionally by THE BUYER, on the amounts owed as the balance of the price of the real estate unit.

Párrafo V: Las partes convienen en que el precio establecido en este artículo está basado en el costo de todos los insumos, servicios, mano de obra, impuestos y gastos directos que intervienen en la construcción de El Proyecto que han sido estimados para la fecha de entrega es el treinta y uno (31) del mes de enero del año dos mil veintidós (2022). No obstante, las partes convienen que cualquier variación que afecte los costos repercutiendo en el alza del valor de construcción de las viviendas, tales como: aquellos conforme al índice de precios del consumidor publicado por el Banco Central de la República Dominicana para el sector vivienda, o una variación de la prima del dólar mayor de un punto (1.), serán asumidos de manera proporcional por EL COMPRADOR, sobre las cantidades adeudadas como saldo del precio de la unidad inmobiliaria.


Don't Change shit EVER!
Paragraph II: The BUYER is expressly prohibited from making modifications to the Real Estate Unit, without the express consent of THE CONSTRUCTION COMPANY, which, if approved, must be carried out by THE CONSTRUCTION COMPANY or under its strict supervision, with the understanding that The BUYER will be responsible for any cost incurred in said modifications and any damage caused to the Real Estate Unit or to the Project in the execution thereof.
 

Big

Well-known member
Apr 24, 2019
1,957
887
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sounds like you are only out 5K (U.S) , you got off easy. Many of those condo complex's are all show and no go. (Not all). Mucho shady characters in the development and sale of cement walls. Best of luck
 

LionKing64

New member
Jun 3, 2020
9
1
3
Michigan
I really think there needs to be a place where people can post their contratos to compare and contrast and rate developers and construction companies.

@Big - So have you seen any other contracts from other projects? I hear many of the dominican's don't read the fine print and just sign. I see the property is making progress on the build which gives me hope but I almost want to hand over another 4k and wait until the unit is finished in Jan of 2022.

@cavok - Can you elaborate? Many of the folks I spoke to said to only invest in new builds since the price of homes only goes up.
 

ctrob

Silver
Nov 9, 2006
5,287
412
83
Lionking - The contract means nothing. It's always going to favor the builder. Of course they're going to win if you stop paying. Of course they're going to say to not modify the apartment, because some nitwit homeowner would start knocking holes in the exterior wall to put in a picture window. You can paint, you can change tile, hang curtains. Nobody's going to bother you for making cosmetic changes.

From some of things you're saying, you really needed a bonfide trustworthy atty to assist you. Handing over money without knowing the landscape is just a crap shoot.
 

LionKing64

New member
Jun 3, 2020
9
1
3
Michigan
Lionking - The contract means nothing. It's always going to favor the builder. Of course they're going to win if you stop paying. Of course they're going to say to not modify the apartment, because some nitwit homeowner would start knocking holes in the exterior wall to put in a picture window. You can paint, you can change tile, hang curtains. Nobody's going to bother you for making cosmetic changes.

From some of things you're saying, you really needed a bonfide trustworthy atty to assist you. Handing over money without knowing the landscape is just a crap shoot.
Do you have any recommendation on an Atty that speaks English in Santo Domingo or Punta Cana? I tried Guzman and I had one chat with someone sent over some information and heard nothing back.
 

cavok

Silver
Jun 16, 2014
4,896
721
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I really think there needs to be a place where people can post their contratos to compare and contrast and rate developers and construction companies.

@Big - So have you seen any other contracts from other projects? I hear many of the dominican's don't read the fine print and just sign. I see the property is making progress on the build which gives me hope but I almost want to hand over another 4k and wait until the unit is finished in Jan of 2022.

@cavok - Can you elaborate? Many of the folks I spoke to said to only invest in new builds since the price of homes only goes up.
Sounds like most of the people you're talking to are gamblers and flippers. Long story short, these developers largely rely on your money to build the project. When sales don't meet expectations - big problem. The project can be delayed for years or not finished at all. Some projects work out fine.

That's a very one-sided contract that leaves you no idea how much you could actually pay in the end.
 

PCMike

Active member
Aug 30, 2008
167
40
28
Try this guy. He represents our bar and can carry on a conversation in English. His name is Sergio. +1 (829) 715-1111

He has done a good job for us and is not playing the game.
 
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LionKing64

New member
Jun 3, 2020
9
1
3
Michigan
Sounds like most of the people you're talking to are gamblers and flippers. Long story short, these developers largely rely on your money to build the project. When sales don't meet expectations - big problem. The project can be delayed for years or not finished at all. Some projects work out fine.

That's a very one-sided contract that leaves you no idea how much you could actually pay in the end.
Have you heard of any stories of someone who has successfully navigated something like this? I'd hate to only use prayer power.
 

aarhus

Traveller
Jun 10, 2008
1,895
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johnboyter.com
Do you have any recommendation on an Atty that speaks English in Santo Domingo or Punta Cana? I tried Guzman and I had one chat with someone sent over some information and heard nothing back.
I would have said Guzman Ariza. They seem strong in real estate law and have offices in all the tourist areas.
 

cavok

Silver
Jun 16, 2014
4,896
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Have you heard of any stories of someone who has successfully navigated something like this? I'd hate to only use prayer power.
Yes, some of these work out just fine. Most are not scams, but you're really rolling the dice on many of them. Risky. The developer could be well intentioned, but if sales don't meet projections - big problem.
 

CristoRey

Double soy latte-sugar free syrup w/ 1% milk
Apr 1, 2014
6,324
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Yes, some of these work out just fine. Most are not scams, but you're really rolling the dice on many of them. Risky. The developer could be well intentioned, but if sales don't meet projections - big problem.
I've heard similar stories.
 

SKY

Gold
Apr 11, 2004
10,142
483
83
If you spend any real time in the DR and get around pretty good you will see many partial built projects that are abandoned. Well the people that bought in early are getting the middle of a bagel back.................

And that is what the OP will get, with cream cheese.
 

Big

Well-known member
Apr 24, 2019
1,957
887
113
I really think there needs to be a place where people can post their contratos to compare and contrast and rate developers and construction companies.

@Big - So have you seen any other contracts from other projects? I hear many of the dominican's don't read the fine print and just sign. I see the property is making progress on the build which gives me hope but I almost want to hand over another 4k and wait until the unit is finished in Jan of 2022.

@cavok - Can you elaborate? Many of the folks I spoke to said to only invest in new builds since the price of homes only goes up.
there are countless properties here that are "fire sale" price right now. Some of them on the internet have been for sale for years.
 

JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
3,122
1,150
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This past summer, I paid a visit to a new residencia project in Punta Cana that was advertising heavy in many of the Spanish news listing. This particular project caught my eye because of the price and proximity to the beach and the Punta Cana airport. Although, the listing stated it was in Barrvaro it was technically in Macao. After some basic fact checking I decided to lay down some funds in the standard $XXX to reserve and a monthly payment plan for the remaining %20. All this was done without a contract in place. After some back and forth for the next 5 months or so a contract "CONTRATO DE PROMESA DE VENTA" was drawn up, that has come real interesting terms in it.

So.. Has anything happened so far other than not liking the wording on the contract? Other than handing over money?
 

CristoRey

Double soy latte-sugar free syrup w/ 1% milk
Apr 1, 2014
6,324
2,503
113
there are countless properties here that are "fire sale" price right now. Some of them on the internet have been for sale for years.
There are several on the outskirts of Santiago.
 

LionKing64

New member
Jun 3, 2020
9
1
3
Michigan
No, I've done some additional checking and the company is registered appropriately and money is being held in a fiduciaro so I'm thinking of taking one for the team.