What Law 189-11 established

Law No. 189-11, promulgated on July 16, 2011, established a framework for the mortgage market and fideicomisos in the Dominican Republic. A fideicomiso involves assets or rights transferred to a fiduciary for administration as a separate pool of assets, according to its stated purpose.

For an English-speaking buyer, ‘trust’ is a useful starting translation. Ask your Dominican lawyer to explain the actual arrangement rather than assuming it works like a trust or escrow account in your home country. In Las Terrenas, Puerto Plata, Sosúa or Cabarete, start with the particular development and unit you are considering.

Identify the parties in your purchase

The fideicomitente contributes assets or rights; the fiduciario administers them; the beneficiary receives the benefits provided by the arrangement. DGII identifies real estate investment and development as one use of a fideicomiso.

Write down the legal names of the developer, fiduciary and seller. Ask your lawyer where you appear in the documents and what rights you receive. Paying a reservation fee should not leave you guessing whether you are buying a specific unit, acquiring another contractual right or becoming a named beneficiary.

Check the fiduciary’s regulatory status through the relevant authority. The Superintendencia de Bancos publishes a directory within its supervisory remit; supervision depends on the entity and activity. A missing name on that particular list calls for further checking, rather than an automatic conclusion that the entity is unauthorized.

Asset separation and project risk

Article 7 separates trust assets from the participants’ own assets and other trusts. That separation has legal limits: Articles 8 and 20 address obligations chargeable to the trust. Article 19 requires registration to perfect transfers of registrable rights.

Ask for evidence that the land identified in your proposed purchase has been contributed as described. Have your lawyer check the title, registered rights and existing charges against the project documents. A brochure naming a fiduciary leaves those questions open.

DGII’s guidance says fiduciaries do not guarantee results or returns. Avoid treating their involvement as a promise of completion, rental income or an automatic refund. Ask who must perform each obligation and what remedy your signed agreement provides if construction is delayed or the project stops.

Documents to request before committing funds

Use this as a request list for your independent lawyer. Some records may need to be obtained through the fiduciary or another authorized party. Ask what evidence is available and which unanswered points should be resolved before signing:

  • The trust’s exact name, RNC and fiduciary’s legal identity; confirmation of the applicable registration and supervision.
  • The trust agreement, relevant amendments or certified information explaining its purpose and the assets included.
  • Current title and registry information identifying the land, its relationship to your unit and any relevant mortgages or other charges.
  • Your reservation and purchase agreements, including payment milestones, delivery terms, cancellation, refunds and dispute procedures.
  • Documents supporting the project’s permits, financing arrangements and the procedure for transferring title to you.

Confirm where payments go and when they can be used

Request written payment instructions and confirm them directly with the named fiduciary through independently checked contact details. Match the account holder and payment reference to the documents your lawyer has reviewed. Resolve any mismatch before transferring funds.

Ask whether your reservation payment enters the trust, what conditions allow funds to be released and who confirms those conditions. If a sales target, financing approval or other condition is mentioned, request its contractual definition. Also ask how you would receive a refund, including any deductions and deadlines.

For a purchase from abroad, keep the signed agreement, payment instructions and receipts together. Have your bank explain currency conversion and transfer charges separately so those costs do not become confused with the purchase price.

Check tax claims separately from the trust structure

A fideicomiso does not establish your eligibility for CONFOTUR incentives. Those belong to the tourism incentive framework. Ask for the project’s classification documents and have a qualified adviser assess the claimed benefit for your transaction.

Request a written closing-cost estimate identifying taxes, professional fees and any trust-related charges you would pay. If an exemption or housing benefit appears in the sales proposal, ask for its legal basis, eligibility conditions and supporting approval before including it in your budget. This guide does not calculate a buyer’s tax liability.

Bring the project details to Jean

Send Jean the project name, location and the type of property you want, along with your approximate budget and timing. He can guide your search and help organize questions for the seller. An independent Dominican lawyer should assess the trust documents and your purchase rights before you commit.