In the last eighteen months I have reviewed close to fifty promesas de compraventa across Punta Cana, Cap Cana, Bávaro, and Uvero Alto. When a deal turns into a problem, it is almost never because of something that happened at closing. It is because of something that was already in the promesa and nobody caught it.
A promesa de compraventa, under Dominican Civil Code Article 1589, is not a "preliminary" contract in any soft sense. It has the force of a sale. Once you sign it, you are bound to close on the agreed terms. The deposit you put down in most cases is not refundable on a change of mind, and the seller can sue to force the closing.
That is why the promesa is the single most important document you sign in a Dominican property purchase. The deed of sale at closing is, most of the time, a mechanical confirmation of what the promesa already decided.
Here is what I look for before I let a client sign.
Red Flag #1: The Deposit Goes Directly to the Seller or Developer
This is the most common mistake I see, and the most expensive when something goes wrong.
If your deposit wires directly into the seller's personal account or the developer's operating account, you have no mechanism to recover it if the deal collapses. You are an unsecured creditor chasing a refund in litigation.
What the contract should say: The deposit is held in escrow by a neutral third party (a law firm's client account, a notary's escrow, or a specialized escrow company). Release is conditioned on specific, verifiable milestones. Return is automatic if due diligence fails or if the seller cannot deliver clean title.
If the promesa does not specify an escrow structure, I revise it. Every time.
Red Flag #2: The Description of the Property Does Not Match the Title
A promesa should identify the property by its designation in the Registry of Title (Designación Catastral) or the parcel number from the deslinde. Marketing names like "Unit 4B, Tower Azure" are not legal descriptions.
I have seen promesas for condominium units where:
- The building is not yet registered as a condominium
- The unit number in the contract doesn't match the final architectural plans
- The land on which the tower sits is co-owned with an entity that is not a party to the promesa
Each of those situations means the contract is selling something that does not legally exist yet. If the developer never completes the registration, the buyer owns a piece of paper.
What the contract should say: Property is identified by cadastral designation matching the current Certificate of Title; if the unit is part of a condominium still under registration, the promesa contains a hard deadline by which the registration must be complete, with automatic refund if missed.
Red Flag #3: No Penalty Clause for Developer Delay
In off-plan purchases, the construction delivery date is the promise that matters most. A promesa without a penalty for late delivery gives the developer unlimited runway, and a reason to deprioritize your unit.
What the contract should say: A specific delivery date, a grace period (usually 60 to 180 days), and a liquidated-damages clause, typically a monthly penalty (1 to 2% of the purchase price) once the grace period expires. Critically: a buyer's right to rescind with full deposit return if the delay exceeds a fixed ceiling (commonly 12 months past contractual delivery).
Developers resist the rescission ceiling. A buyer without one is hostage.
Red Flag #4: The Clause on "Acts of Government" Is Too Broad
Every real estate contract has a force majeure clause. That is normal. What is not normal is a force majeure clause broad enough to excuse the developer for almost any delay.
I have seen promesas where "any act of a government authority, permit delay, or change in regulation" excuses the developer. In Punta Cana, where permit delays are the norm rather than the exception, that clause effectively removes the delivery obligation altogether.
What the contract should say: Force majeure is narrowly defined (natural disasters, declared states of emergency, genuine acts of God), excludes permit delays caused by the developer's own filings, and requires the developer to notify the buyer within a specific window.
Red Flag #5: The Payment Schedule Front-Loads the Buyer
In off-plan sales, the payment schedule is where buyers have room to negotiate. A schedule that requires 60% paid before foundation is poured is a red flag: it shifts construction financing risk onto the buyer with no ownership protection.
What the contract should say: Payments track construction milestones that are verifiable on site. A standard structure: 10–20% at signing, progressive installments against certified completion percentages, final 15–25% at delivery against the Certificate of Title transferred.
I have negotiated down front-loaded schedules dozens of times. Developers know the schedule is aggressive; they use it because buyers without counsel accept it.
Red Flag #6: Closing Costs Are Allocated "Per Law" or Not at All
Dominican law does not allocate closing costs by default. Custom allocates them. (3% transfer tax) is customarily paid by the buyer. Notary and registration fees are customarily split. Developer closing costs for new construction are often shifted entirely to the buyer, sometimes legitimately, sometimes abusively.
If the promesa says "closing costs shall be paid as established by law," it is saying nothing. Dominican law does not establish anything.
What the contract should say: A line-by-line allocation. ITBI: buyer. IPI arrears (if any): seller. Notary: split or assigned. Registry fees: buyer. Legal fees: each party theirs. Condominium registration surcharges (for new builds): explicit.
Red Flag #7: The Seller Is a Corporation You Cannot Verify
In Cap Cana and gated Punta Cana developments, the seller on the promesa is often a Dominican SRL or SA, not a human being. That is normal. What is not normal is when basic corporate verification is blocked.
Before signing, I confirm:
- The SRL is active and in good standing at the Chamber of Commerce
- The person signing is a registered legal representative with authority to convey real estate (check the acta de asamblea and the bylaws)
- The corporation owns the property being sold (Certificate of Title confirms)
- The corporation has no active tax liens (DGII certification)
- The corporation is not in a commercial restructuring procedure (Ley 141-15)
A promesa signed by someone without corporate authority is voidable. The refund fight comes later.
Red Flag #8: No Choice-of-Forum and No Spanish Version Controlling
For foreign buyers, this is where contract risk accumulates invisibly. If the promesa is bilingual but silent on which version controls, a Dominican court will apply the Spanish version. If the contract says "disputes shall be resolved in the courts of [buyer's country]," Dominican courts will generally disregard it: real estate disputes over Dominican property are, by law, resolved in Dominican courts.
What the contract should say: Spanish version controls in case of discrepancy. Dominican courts have jurisdiction. If arbitration is included, it is a Dominican seat (Santo Domingo or Santiago), with rules that are actually applied locally.
Any foreign-law or foreign-court clause in a Dominican real estate contract is, at best, decorative. At worst, it gives the buyer a false sense of protection.
Bonus Red Flag: The Lawyer Representing You Also Represents the Seller
I cannot end without addressing this. In Punta Cana it is common, and accepted, for a single "closing lawyer" to represent both sides. Developers often push this arrangement because it is faster and cheaper.
It is not fair to the buyer. A closing lawyer acting for the seller is not looking for problems in the promesa, because problems in the promesa favor the buyer. You want someone whose job is to find reasons not to close.
If you are told "there's no need for your own lawyer, we'll handle everything," that is the moment to hire one.
Before You Sign Checklist
Run through this list, line by line, on any promesa you are about to sign:
- ☐ Deposit is in escrow, not in seller's account
- ☐ Property is identified by cadastral designation or parcel number
- ☐ Condominium regime (if applicable) is registered, or there is a hard deadline
- ☐ Delivery date is specific, with penalty for delay
- ☐ Force majeure is narrowly defined, excludes permit delays
- ☐ Payment schedule tracks construction milestones
- ☐ Closing costs are allocated line by line
- ☐ Seller's corporate authority is verified
- ☐ Spanish version controls
- ☐ My lawyer represents only me
FAQ
Is the deposit refundable if I change my mind? Generally no. The promesa is binding under Civil Code Article 1589. A refund happens only if the promesa fails a condition the contract itself defines, or if the seller cannot deliver clean title.
What if I already signed something I am worried about? Rescission is possible if there are material defects in the seller's performance, in the property, or in the contract itself. A review of the specific contract and what has happened since tells us the path.
Can I cancel during a "cooling off" period? Dominican law does not provide a cooling-off period for real estate purchases, as some U.S. states do. Once you sign, you are committed.
What's the typical deposit amount? 10–20% at signing is standard. More than that is developer-friendly and warrants negotiation.
Who should draft the promesa? If the seller drafts it, expect seller-protective language. A buyer's lawyer should review and revise before signing. On significant purchases, a buyer's lawyer may counter-draft.
What happens if the survey doesn't match the title? This is a legitimate ground to rescind before closing. A surveyor's report that contradicts the registered cadastral plan is a closing stopper.
How long do I have to raise hidden defects after closing? A "brief time" from discovery under Civil Code Article 1648, plus the ten-year decennial liability against builders for structural defects (Art. 1792 and 2270).
The Point
The promesa de compraventa is where Punta Cana purchases succeed or fail. By the time you are at the closing table, the terms are locked. Good due diligence means reading this document with the assumption that something in it is wrong, because something usually is.
If you want a read on yours, send it. I will mark what I would change.
WhatsApp: +1 (829) 259-8645 Email: esanchez@caribbeancounseldr.com
Related Reading
- Due Diligence When Buying in Punta Cana — the full legal checklist beyond the contract
- Verify a Property Title in Dominican Republic — title search, Estado Jurídico, and encumbrances
- When a Punta Cana Developer Doesn't Deliver — legal options after the promesa is signed and the developer defaults