None of these seven mistakes when buying an apartment have anything to do with choosing the wrong development. They all have to do with what wasn't checked before signing.
When buying an apartment in Punta Cana, the most costly mistakes aren’t related to aesthetics or location—they’re procedural. Budgeting only for the list price and forgetting that closing costs include taxes, legal fees, and registration fees. Signing a reservation agreement before seeing the title deed. Assuming the project has Confotur approval just because the seller said so. Failing to read the condo rules regarding short-term rentals when your entire investment plan depends on being able to rent the unit out. Comparing prices per square meter across projects that include different amenities. Ignoring monthly maintenance fees. And buying off-plan without verifying whether there is a trust in place. All seven of these mistakes can be avoided by asking the right questions beforehand, not afterward.
Mistake #1 When Buying an Apartment: Budgeting Only for the List Price
The price of the apartment isn't what you'll actually pay. You'll need to add the following to the listed price:
- A 3% ITBI tax on the value determined by the DGII’s appraisal, unless exempted by Confotur.
- Legal fees for due diligence and the contract.
- Title registration fees.
- Loan closing costs, if you take out a loan.
- Furniture, if you're going to rent.
The complete breakdown—including what you pay for and when—can be found in our article on ITBI and the actual costs of buying a home in the Dominican Republic.
Mistake 2: Booking before seeing the title
The reservation is often made immediately, in a single visit, to “lock in the price.” Before doing so, you should have reviewed the title deed for the parent parcel and checked for any liens or encumbrances on it.
This is not a mere formality: it is a way to verify that the seller is authorized to sell and that the property is free of mortgages, liens, or objections. The legal framework is provided by Law 108-05, and the information can be found in the Real Estate Registry. We explain the step-by-step procedure in “How to Verify a Property Title.”
Mistake 3: Taking Confotur for granted
“The project has Confotur certification” is one of the most commonly heard phrases in the area, and it isn’t always true—or at least not yet. The certification is granted on a project-by-project basis and must be verified.
The difference is significant: the exemption covers the 3% ITBI and the real estate wealth tax for 15 years. Check it out for yourself in the official MITUR registry before calculating your closing costs.
Mistake 4: Not reading the condo's rental rules
This is the mistake that has derailed the most investment plans when buying an apartment. You might buy the perfect apartment in the perfect neighborhood, only to discover later that the condo rules limit or prohibit renting through online platforms.
Please submit your question in writing before making a reservation:
- Is short-term rental allowed?
- Is there a mandatory minimum stay?
- Are there any restrictions on platforms or the number of guests?
- What operational requirements does the administration impose?
A verbal agreement isn't enough. It needs to be included in the rules or in a signed document.
Mistake 5: Comparing prices per meter between different items
Two projects with the same price per square meter can be very different deals. What determines the actual value:
| Variable | Why Does the Comparison Change? |
|---|---|
| Patio and Balcony | Sometimes it's counted as saleable area, and sometimes it isn't |
| Amenities | The pool, gym, and security are covered by the maintenance fee |
| Parking | Included in some projects; billed separately in others |
| Finishes and Features | Delivered with or without a fully equipped kitchen and air conditioning |
| Project Phase | Introductory price vs. final-phase price |
| Monthly Maintenance | The expense that most erodes net profitability |
Compare total cost of ownership, not price per square meter.
Mistake 6: Ignoring Monthly Maintenance
Maintenance is the recurring expense that determines whether your net profit is what you calculated. It varies greatly from project to project, and in developments with a master plan, it can consist of two components: the condominium fee and the community fee.
Ask for both of them in writing and add them to your projection before signing. High maintenance costs aren't necessarily a bad thing if they support amenities that attract guests; the problem is finding out about them afterward.
Mistake 7: Buying off-plan without a trust agreement
When you buy an apartment off-plan, you’re paying for something that doesn’t exist yet. The mechanism that protects that money in the Dominican Republic is the administration trust regulated by Law 189-11: your contributions go into a separate trust fund, managed by a supervised trust company, set aside exclusively for the completion of the project, and beyond the reach of the developer’s creditors.
Without that structure, your position depends solely on the contract and the financial stability of the developer. How it works and what questions to ask the trustee are covered in the article on real estate trusts, along with the full range of advantages and risks involved in buying an off-plan apartment.
Before Buying an Apartment: The Short List
- Certificate of Title for the Parent Parcel and Its Encumbrances.
- Trust agreement and name of the trustee.
- Valid building permits.
- Descriptive report on finishes, signed as an appendix.
- Complete payment schedule with dates and amounts.
- Contractual delivery date and late payment penalty.
- Confotur status verified in the MITUR registry.
- Condominium Bylaws, including rental rules.
- Monthly maintenance, all layers.
- A written breakdown of all closing costs.
If a salesperson takes issue with this list, you've already gathered valuable information before signing.
Frequently Asked Questions
What is the most costly mistake when buying an apartment in Punta Cana?
Buy during the presale without an escrow agreement. It's the only one on the list where the risk isn't additional costs but rather the loss of your down payment if the project isn't completed.
How much should be added to the price for closing costs?
It depends on whether you qualify for the Confotur exemption. Without the exemption, the ITBI is 3% of the value assessed by the DGII, plus legal fees and registration fees. Always ask for a written breakdown.
How do I know if a project is part of Confotur?
This can be verified in MITUR's official registry. Don't take the information in the sales materials at face value: classification is granted on a project-by-project basis and may still be pending.
Can I rent any apartment in Punta Cana through Airbnb?
Not necessarily. It depends on the condominium bylaws, not on a general local regulation. Make sure to get written confirmation before buying if your plans depend on renting.
Is it mandatory to hire a lawyer?
It is not required by law, but registry due diligence and contract review require legal judgment. It is the expense that eliminates the most risk per unit of investment.
At Garrigó Real Estate, we’re here to guide you with this checklist in hand: we review the title, trust agreement, bylaws, and costs before you make a reservation.
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