The legal loophole that is costing millions and destroying investment dreams.
Two weeks ago, I received a desperate call from a client who had just received the keys to her apartment in a resort in Punta Cana. “ Doctor, they’re charging me $500 for services they never explained to me, and they’ve forbidden me from renting my property unless I sign the resort’s rules. Is this legal?”
This conversation was repeated several times over two weeks in my office. The common denominator: nobody read the complex's regulations before buying, or before signing.
As a lawyer and real estate advisor who has advised on several transactions in tourist developments, I have observed a situation that requires our urgent attention to protect the strength of our sector that we call real estate tourism: the regulations in resorts may be operating in a legal vacuum that needs to be addressed.
The hidden reality of large complexes
In my 20 years of real estate law practice, I have seen how these majestic resort complexes have created their own "mini-states" with rules that can be surprising, and in some cases, violate fundamental rights of owners or prospective owners.
The problem isn't that regulations exist. The problem is that they operate without a specific legal framework to govern them
Unlike condominium regulations, which are clearly established by Law 5038 and its amendments, the regulations of these tourist complexes operate in a legal gray area that can generate costly and prolonged conflicts.
What's really going on?
The regulations for these complexes may include restrictions ranging from:
- Limitations on the use of the property (prohibitions on short-term rentals, restrictions on guests, families, friends, etc.)
- Mandatory charges not clearly specified in the purchase contract
- Extremely restrictive building and modification regulations
- Pet regulations that may surprise owners
- More restrictive access and use hours for common areas than traditional condominiums
- Commercial exclusivity clauses that may limit economic activities
The million-dollar questions are: How many buyers are aware of these restrictions before signing? How many real estate agents know these regulations exist and have thoroughly studied them before advising their clients?
The cost of ignorance
I have documented cases where landlords have faced:
- Unexpected fines for violations of regulations they were unaware of
- Profitability limitations due to restrictions not disclosed in a timely manner
- Prolonged legal conflicts due to ambiguous interpretations of regulations
- Loss of value due to restrictions affecting subsequent marketing
A mistake in understanding these regulations can cost more than the commission of an entire sale.
The legal loophole that no one mentions
Herein lies the fundamental problem: these regulations are not governed by any special law that supervises them, as is the case with condominiums.
This means that:
- There is no clear legal framework that sets limits on the restrictions
- Landlords have less legal protection against potential abuses
- There is no specific government oversight mechanism
- Conflicts are resolved in ordinary courts, not in specialized bodies
This situation may violate fundamental rights such as the right to property enshrined in Article 51 of the Dominican Constitution and consumer rights enshrined in Law 358-05.
Shared responsibility
For real estate agents:
Knowing the project is no longer enough. You need to master the complex's regulations.
When you sell in a gated community, like the ones mentioned above, you're not just selling an apartment; you're selling a lifestyle with specific rules. Your professional credibility depends on your client not being surprised after handover.
For developers:
Building in these complexes requires in-depth knowledge of their regulations before marketing.
I've seen developers promise amenities or uses that later turn out to violate the regulations of the parent complex. The result: frustrated clients and avoidable litigation.
But there's a more serious problem: many construction companies send only the preliminary sales agreement, without including the complex's regulations. This practice must change immediately. The regulations should always accompany the initial contract, not appear as a surprise upon delivery.
For buyers:
It requires reading and signing the regulations before the final contract, not after.
My urgent legal recommendation:
To complex managers: Register your regulations with the Consumer Protection Agency to prevent them from being considered abusive adhesion contracts. This preventative measure can avoid costly litigation and promote greater transparency. Require construction companies operating or building within your complexes to always include the regulations with the purchase agreement.
To construction companies: Inform both the agent and the buyer about the complex's regulations from the very first contact. Don't just send the contract; include the complete regulations. This initial transparency prevents future disputes and builds trust.
To financial institutions: Evaluate the regulations of residential complexes before granting financing. Abusive regulations can render your collateral illiquid. What happens when you acquire a property but cannot sell it due to complex restrictions? This systemic risk requires prior assessment.
To industry professionals: Incorporate regulatory review as a standard part of your sales and due diligence process. It's not optional; it's a matter of professional survival. Remember: you're not just selling the project, you're selling the entire complex and its regulatory ecosystem.
To buyers: Never sign a contract without having read and fully understood the complex's regulations.
The call to action
As a lawyer, real estate advisor, and author of the book " Real Estate from a Legal Perspective," I make an urgent appeal to our sector:
It is imperative to amend Law 5038 to include specific regulations for these tourist resorts and their rules. The reality is that not all current regulations are "honest"—some violate fundamental rights of purchasers under the pretext of being "resort rules."
We need clear rules, but rules that don't violate rights. Rules without abuse of power. Rules that are neither arbitrary nor unilateral.
I have documented cases where buyers signed a set of regulations, but the applicable regulations changed drastically afterward, based on clauses that allow for "unilateral modifications when the administration deems it appropriate." This is not a right; this is an abuse.
As Benito Juárez aptly stated : "Respect for the rights of others is peace." This principle should govern these complexes.
Meanwhile, the only real protection is preventative knowledge and transparency from the first contact.
The question that changes everything
Before your next sale in any of these complexes, ask yourself: Can I explain to my client exactly what they can and cannot do with their property according to the complex's regulations?
If the answer is no, then your customer is buying blindly, and you're selling in dangerous territory.
Unread regulations are a guaranteed problem.
Acting opaquely not only harms individual buyers; it harms the entire real estate sector, including foreign investment, tourism, and our economy. Transparency and respect for rights are not optional; they are the foundation of a sustainable and reliable sector and guaranteed legal certainty.
Professional excellence in the luxury real estate sector is no longer measured solely by closed sales, but by conflicts avoided and rights respected. Remember this: “The true luxury of real estate is legal security.”
This article is part of the 'Legal Protection in Real Estate' series.
The opinions expressed in this article are the sole responsibility of the author.
