The payment receipt in off-plan sales: An essential right of the buyer

By Reyna Echenique

Special for El Inmobiliario

A persistent practice in the Dominican real estate market is the unjustified delay or refusal by some developers to provide official receipts for payments made on off-plan sales. This situation, which violates basic buyer rights, becomes even more relevant with the implementation of Regulation 07-22 in May 2025, which will require verifiable proof of payment for all real estate transfers.

The dual function of the official receipt

Article 1315 of the Dominican Civil Code states that "Whoever claims the performance of an obligation must prove it. Conversely, whoever claims to be released from the obligation must justify payment or the event that extinguished it." This fundamental principle establishes that both buyer and seller have a legitimate interest in properly documenting each transaction.

It is essential to distinguish between two different documents that fulfill complementary evidentiary functions:

• The bank receipt (transfer, deposit or check): Only proves that the money left the buyer's account.
• The official receipt issued by the construction company: Certifies that the payment was effectively received and correctly applied to the specific property.

The practice of some developers delaying the issuance of these official receipts, or pretending that bank receipts replace them, places the buyer in an unjustifiably vulnerable legal position, especially considering the significant amounts involved in these transactions.

Emerging good practices in the sector

It is worth noting that some construction companies have implemented commendable best practices, such as issuing "statements of payments received" that function as a consolidated receipt. This document offers even greater transparency than individual receipts, as it includes both payments made and outstanding amounts, providing the buyer with a comprehensive view of the financial status of their investment. This exemplary practice should be adopted throughout the sector, as it represents a higher standard of professionalism and accountability to the client.

The particular case of international transfers

This distinction is particularly important in international transfers, where, according to the Dominican Financial and Tax Authority, commissions or "fees" are applied that reduce the final amount received by the construction company.

Without an official receipt specifying exactly how much was received and applied to the property, significant discrepancies can arise in the final balance, only becoming apparent at the time of delivery. The buyer could face unpleasant surprises upon discovering that, due to these improperly documented fees, there is a larger outstanding balance than expected.

For the developer, the official receipt also serves a protective function, as it clearly establishes the amount actually applied after bank deductions, preventing future claims from the buyer.

Standard 07-22: New documentary requirements

The entry into force in May 2025 of General Rule 07-22 of the General Directorate of Internal Taxes will establish stricter requirements for real estate transfers, including the obligation to present reliable proof of all payments made.

This regulation transforms what was previously considered a "best practice" into a mandatory requirement with direct registration consequences. To proceed with the final transfer of the property, formal documentary evidence of each payment must be submitted, including clear identification of:

• The method of payment (cash, transfer, check)
• The exact amount applied
• The explicit link to the corresponding property

Buyers who have not demanded and received official receipts for each payment will face significant obstacles when applying for the final transfer of their property, regardless of whether they retain bank proof of their payments.

Practical consequences for the buyer

The absence of official receipts creates multiple vulnerabilities for the buyer:

1. Evidentiary difficulties: Without official receipts, the buyer faces obstacles in proving payments made in case of disputes or claims about amounts or dates.
2. Barriers to the transfer: Standard 07-2022 will require reliable proof of payment to complete the transfer process, which could make this procedure impossible if the appropriate documentation is not available.
3. Limitations for financing: Financial institutions that grant mortgage loans require complete and formal documentation, including receipts of previous payments that demonstrate the progress of the investment.
4. Weakened legal position: In the event of breaches by the developer, the absence of formal documentation significantly reduces the buyer's ability to exercise their rights in administrative or judicial proceedings.
5. Uncertainty about balances: Without clear documentation on amounts applied, especially in international payments with fees, discrepancies may arise regarding the actual outstanding balance.
6. Risk for notaries: The regulation establishes that non-compliance with these provisions will be sanctioned in accordance with the provisions of paragraph 11 of Article 4 of Law No. 155-17, which could even lead to the revocation of the notary's appointment as a public official. This means that notaries will be particularly rigorous in requiring this documentation.

Protecting your rights: A practical guide

For buyers:

1. Demand immediate official receipts: Do not accept excuses for delays in providing formal receipts for each payment made. Verify that these accurately reflect the amount paid, especially for international transfers where fees may apply.
2. Verify that the receipt complies with standard 07-2022: Ensure that each receipt or statement includes all essential elements: clear identification of the parties, specific concept of the operation, exact date, detailed amount, payment instrument used, and precise identification of the asset.
3. Establish documentary obligations in the contract: Include specific clauses that establish the developer's obligation to deliver official receipts within a defined period (ideally no more than 10 working days after each payment).
4. Documenting outstanding requests: If the developer fails to provide timely receipts, send formal communications (preferably with acknowledgment of receipt) requesting the outstanding documents.
5. Maintain chronological records: Organize receipts in chronological order along with the corresponding bank statements, facilitating the complete reconstruction of the payment history when the final transfer is required.

For developers:

1. Implement efficient systems: Establish processes that guarantee the immediate issuance and delivery of official receipts after each payment is verified, ideally automating this procedure to comply with the requirements of standard 07-2022.
2. Adopting best practices such as integrated payment statements: Some developers have implemented the delivery of a comprehensive payment statement instead of individual receipts. This document, which functions as a consolidated receipt, offers greater transparency by including both payments made and outstanding amounts, providing the buyer with a complete overview of the financial status of their investment. This exemplary practice deserves recognition and should be more widespread in the industry.
3. Train staff: Ensure that the administrative team understands the legal importance of these documents and the exact implications of standard 07-2022, including the minimum elements that each reliable proof of payment must contain.
4. Maintain comprehensive records: Implement document management systems that allow quick access to the complete payment history of each unit and guarantee the preservation of records for the minimum required period of ten years.
5. Transparency in international transfers: Establish clear policies on the application of net amounts after bank fees, correctly reflecting these adjustments in official receipts.
6. Standardize receipt formats: Develop standardized formats that comply with all the requirements of standard 07-2022, facilitating the systematic compliance with these legal obligations.

The timely issuance of official receipts is not merely an administrative formality but a fundamental pillar of legal certainty in real estate transactions. The imminent implementation of regulation 07-2022 underscores the importance of this documentation practice, making it an essential requirement for the final transfer of properties.

This regulation, by precisely establishing what constitutes reliable proof of payment and requiring its preservation for a period of ten years, creates a financial traceability system that benefits all parties involved, but which will be particularly critical for the buyer when requesting the final transfer of their property.

Buyers should take a proactive approach, demanding strict compliance with this obligation from the very first payment. For their part, professional developers have the opportunity to turn this legal requirement into a competitive advantage that reinforces their reputation for transparency and reliability, anticipating the full implementation of the regulation in May 2025.

Proper documentation is not a luxury: it is an essential component of any responsible real estate transaction and a fundamental right of the buyer that should not be ignored or postponed. The time to demand it is now, not when the regulation comes into full effect and it is too late to document past transactions.

This article is part of the series "Good Real Estate Practices in the Dominican Republic"

The author is a lawyer specializing in real estate law, a real estate entrepreneur, CEO of Echenique Group, a speaker and trainer certified by Maxwell Leadership and Tania Báez, Secretary of the Board of Directors AEI 2024-2026, and a realtor specializing in the Dominican and international real estate sector.