By Reyna Echenique
Special for El Inmobiliario
Buying a property represents one of the biggest financial milestones in a person's life. However, mistakes in reviewing the contract can transform this important investment into a real headache. The excitement of acquiring the dream property should not overshadow the importance of a well-structured contract.
With over 18 years of experience in the Dominican real estate sector, I've identified the most common mistakes that jeopardize buyers' investments. This guide will help you recognize and avoid them.
The contract: The cornerstone of your investment
The purchase agreement – in the case of off-plan properties – is much more than a simple document; it represents the backbone of your investment and each clause can have significant consequences in the future.
#1-The seller's blurred identity
The first mistake arises when we fail to verify who is really on the other side of the table. As a lawyer specializing in real estate law, I have seen cases where this lack of verification has resulted in significant legal problems.
What you should check:
– Current commercial registry
– Specific mandate of the signatory
– Minutes of the assembly authorizing the sale
– Up-to-date tax certification
– Identity of the signatory
#2 – The undefined property
The excitement of buying can make us overlook essential details. In my experience advising buyers, I've noticed that ambiguous descriptions are a common source of future conflicts.
Critical points:
– Detailed description of the property
– Footages
– Attached property plans
– Clear definition of common areas
#3 – The delivery without a date
As a real estate consultant, I've learned that time is a critical factor in these transactions. The lack of specific dates can become a significant problem, since seeing something like, "delivery within 36 months of obtaining building permits ," isn't a firm date as required by our Civil Code.
Essential elements:
– Exact delivery date
– Defined payment schedule
– Clear limits for delivery date extensions
– Balanced penalties
#4 – The uncertain terrain
Site verification is essential. My experience in the sector has shown that this step is frequently underestimated.
Essential documentation:
– Verified title deed
– Certification of charges and encumbrances
– Building permits
– Environmental certifications
– Confotur resolutions if you have this benefit
#5 – The invisible guarantees
As a specialist in real estate law, I emphasize the importance of explicit guarantees. The protection of your investment cannot be left to chance.
Necessary guarantees:
– Completion of work
– Coverage for hidden defects
– Specific insurance
– Detailed inspection process
– Justification of the right to the property on which it is built (its owner, has it already been transferred?)
#6 – The false economy
Experience has taught me that skimping on legal advice is like building without a foundation or a solid base. This mistake can be extremely costly in the long run.
Consequences of not seeking advice:
– Undetected unfair terms
– Unbalanced obligations
– Ambiguous terms
– Unprotected rights
#7 – The silence that costs
As a lawyer, I've seen how verbal agreements can become a source of conflict. Every change or agreement should be documented.
What needs to be documented:
– Contract modifications
– Agreements on changes
– Updated schedules
– Modified specifications
The final word
Prevention is your best ally in the real estate buying process. As a professional in the sector, I can assure you that paying attention to these details makes all the difference between a successful investment and a prolonged problem.
The author has over 18 years of experience as a lawyer specializing in Real Estate Law and real estate consultant, founder of Echenique Group, her work has focused on providing preventive legal security to investors and buyers in the Dominican Republic.
This article is part of a series on legal security in real estate investments, where the author shares her expertise in the sector. Her advice has helped hundreds of buyers make secure investments in the Dominican market.
