SANTO DOMINGO. - Real estate law specialist, attorney Rosanna Matos, believes that buying properties in projects under construction offers multiple advantages, such as more affordable prices and the possibility of choosing better locations or customizing some finishes.
However, he believes the process also carries risks, including failure to deliver or complete the project, which can create uncertainty and losses for buyers. Therefore, he considers it essential to take preventative measures before investing.
Following news reports in various media outlets about complaints from buyers of properties under construction, alleging they were scammed, the expert suggests some actions that can help before acquiring a property.
The first piece of advice she offers is to conduct due diligence . "It's the first step anyone wishing to purchase a property should take. This process involves investigating the status of the development permits, the legal status of the land where the project is being developed, the tax status of the developer and the property, the legal status of the developer (reviewing their corporate documents), and the developer's track record," explains the professional, who has 25 years of experience in the real estate and construction sectors.
Matos' second suggestion concerns reviewing the contract . "Once you've done your due diligence, when signing your purchase agreement, make sure you understand the obligations of both the developer and the buyer, the property delivery date, and the penalties for breach of contract by either party. Don't sign anything without being fully aware of what you're signing."
Rosanna Matos. (EXTERNAL SOURCE).
He also recommends using a real estate trust . “In the Dominican Republic, many off-plan projects are developed under a real estate trust structure. This instrument provides greater transparency and security, since the funds contributed by buyers are managed by a fiduciary entity and are used exclusively for the execution of the project. Investing through trusts is a recommended option, especially when the developer is new to the market,” he noted.
Minimizing risk is the fourth piece of advice offered by the specialist. "Although all investments carry some risk, it is essential to take steps to minimize it. The best way to do this is by investing in an informed manner, seeking advice from experts, and choosing projects with solid legal structures."
Finally, Rosanna Matos recommends seeking advice from experts in the field, including real estate agents, legal advisors, and tax advisors, if necessary.
