Buying off-plan apartments lowers the down payment and spreads out the payments, but shifts the risks to the buyer. Here's how to identify and mitigate those risks.
Buying off-plan condos means purchasing a unit that hasn’t been built yet, paying in installments during construction, and taking possession of the property upon completion. In Punta Cana, this is the dominant model for new construction, and its appeal is clear: the pre-sale price is usually lower than that of a finished unit, the down payment is divided into installments throughout construction with no bank interest, and you can choose a better location within the development. In exchange, you assume risks that don’t exist when buying a completed property: delays in delivery, changes in specifications compared to the renderings, and, in the worst-case scenario, default by the developer. The good news is that these risks can be mitigated, and in the Dominican Republic, the primary tool for doing so is the management trust regulated by Law 189-11. Buying off-plan without understanding this structure is where people get into trouble.
What exactly does it mean to buy off-plan apartments?
Buying an off-plan apartment—or a pre-sale unit—means signing a contract for a unit that does not yet physically exist. What you’re buying is the right to receive it once it’s built according to certain specifications and within an agreed-upon timeframe.
The typical payment schedule in Punta Cana is divided into three installments:
- Deposit. A small amount that reserves the specific unit while the contract is being signed.
- Installment down payment. A percentage of the price paid in monthly installments during the construction period.
- Balance due upon delivery. The remainder is paid upon receipt. This is where the bank mortgage comes in, if you need one.
The practical implication of this arrangement is significant: during construction, you make payments to the developer, not interest payments to a bank. That is one of the strongest financial arguments in favor of pre-sales, and also the reason why you should review the payment plan before looking at any other figures.
What are the real advantages of off-plan apartments?
- Lower entry price. A unit in presale is usually priced below the price of the same unit once it is completed, because the developer is financing the construction with your payment.
- Installment payments with no bank interest during construction, which reduces the need for immediate capital.
- Better selection. By signing up early, you can choose your floor, orientation, and view. The best units in a development rarely make it to the handover phase.
- Appreciation potential during construction. If the project progresses as planned and the neighborhood is favorable, the unit may be worth more upon delivery than what you paid for it. This is not a guarantee—it’s simply what usually happens when the project is executed well.
- New unit, in pristine condition, with valid construction warranties.
What are the risks associated with off-plan apartments, and how are they covered?
Here's what almost no brochure explains, and it's the part you should really read:
| Risk | What Might Happen | How to Protect Yourself |
|---|---|---|
| Delay in Delivery | The project is being delivered months later than agreed upon | Deadlines and late fees must be specified in the contract, not just verbally |
| Change in Specifications | Finishes or areas that differ from the rendering | Descriptive report attached and signed as part of the contract |
| Developer's Failure to Comply | The project is put on hold or not completed | Management Trust under Law 189-11 |
| Meters different from what was promised | The final area differs from the contracted area | Area Tolerance Clause and Price Adjustment |
| Degree-Related Issues | Delay or problem registering your degree | Verify the land registry records for the parent parcel before signing |
| Cost Surprises | Unplanned closures, maintenance, and fees | Request a written breakdown of all costs before making a reservation |
The trust is the key safeguard
If you take away just one idea from this article, let it be this: in an administration trust, your payments do not go into the developer’s pocket, but rather into a separate trust fund managed by a supervised trustee. That trust fund is exclusively earmarked for the project’s completion and remains beyond the reach of the developer’s creditors. This is the legal framework established by Law 189-11, the Law for the Development of the Mortgage Market and Trusts in the Dominican Republic.
In our article on real estate trusts in the Dominican Republic, we explain in detail how this works, what questions to ask the trustee, and how to verify that the project is actually structured this way.
Off-Plan or Completed Apartments? How to Decide
| Criterion | In plans | Completed |
|---|---|---|
| Price | Minor | Major |
| Initial capital | Payments in installments during construction | You need the signature when signing |
| Unit Availability | The entire plant | What Remained |
| Product Assurance | Renderings and descriptive report | You see it and touch it |
| Time until it becomes available for rent | Months or years of waiting | Immediate |
| Execution Risk | It exists; it is covered by a contract and a trust. | Virtually zero |
The rule of thumb: If you need rental income soon, buy a finished property. If you have a time horizon of several years and want the best purchase price, buying off-plan makes sense—provided the legal structure has been reviewed.
A Checklist Before Buying Off-Plan Apartments
Before submitting the reservation, be sure to request and review the following:
- Certificate of title for the parent parcel and a statement of encumbrances and liens. You can review the framework of the title registry, governed by Law 108-05, at the Real Estate Registry. The complete procedure is outlined in our guide on how to verify a property title.
- Trust agreement and name of the trustee managing the project.
- Valid and approved building permits.
- Descriptive report detailing finishes, fixtures, and areas, attached as an appendix.
- A complete payment plan, including dates and amounts—not a business summary.
- Contractual delivery date and explicit penalty for late delivery.
- Developer track record: previous projects delivered, and whether they were delivered on time.
- The project’s Confotur status, which can be verified in the MITUR registry. If applicable, it exempts you from the 3% ITBI and the real estate wealth tax for 15 years, as explained in the article on the Confotur Law.
- A written breakdown of all closing costs.
- Condominium rules, especially if you plan to rent out your unit on a short-term basis.
If a developer is uncomfortable with this list, you've already gotten a valuable answer before signing.
What's available for presale in Punta Cana today?
To give a specific example, here are the starting prices for presale projects in our portfolio, as of August 5, 2026: starting at US$154,900 at Coral Golf Resort in Cabeza de Toro, and starting at US$326,000 in Cap Cana for residential properties. Each development has its own payment plan, and that is the first figure you should compare across projects—even before looking at the price per square meter. You can view the complete portfolio on our projects page.
Frequently Asked Questions
Is it safe to buy off-plan apartments in the Dominican Republic?
This is the case when the project operates under a management trust in accordance with Law 189-11, has valid permits, and the contract specifies a deadline, specifications, and penalties. Without those three elements, the risk increases considerably.
How much is the down payment when buying off-plan apartments?
It varies by project. In Punta Cana, the standard practice is to make a small reservation deposit, pay the initial balance in installments during construction, and pay the remaining balance upon delivery. Always ask for the complete payment schedule, including dates and amounts, before making a reservation.
What happens if the developer doesn't deliver?
If the project is held in trust, your contributions are held in a separate trust fund designated for the project’s completion and are beyond the reach of the developer’s creditors. Without a trust, your position depends solely on the contract and the developer’s financial stability.
Can I sell my unit before it's delivered?
In many projects, it is possible to assign the contract before delivery, but this depends on what the contract itself allows and whether the developer charges a fee for the assignment. Confirm this in writing before signing.
Are off-plan apartments always cheaper than completed ones?
This is usually the case, because the buyer provides financing for the project and assumes the risk of its execution. But it’s not a rule: in high-demand projects, the final stages may be priced higher than the initial entry cost.
At Garrigó Real Estate, we review the trust agreement, the payment plan, and the project description for each project with you before you make a reservation.
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