Key Clauses in the Purchase Promise Agreement in the Dominican Republic
What is a purchase promise in the Dominican Republic and why you should take it seriously
The purchase promise in the Dominican Republic is a preliminary contract. The owner or developer undertakes to sell a property and the buyer to purchase it, within a timeframe and under conditions that are set out in writing. There is no transfer of ownership yet. But enforceable obligations are created for both parties from the moment of signing. In new-build projects in Punta Cana, such as Salado Golf & Beach in White Sands, Bávaro, this document works as a lock: it separates your flat from the market while you close the financing, review the paperwork and organise your investment.
I have seen it many times. European buyers who arrive looking for a second home in the Caribbean and sign without reading, trusting that “everything will work out”. A poorly drafted promise can cost you the flat, subject you to brutal penalties or leave you trapped in a paralysed project. That is why it is worth understanding its clauses with the same care with which you choose the location. In Bávaro, with the 11.6 million visitors the Dominican Republic received in 2025, the estimated return on holiday flats is around 8% to 12% per year. Every signature is a weighty financial decision.
Which clauses should you scrutinise closely?
Reviewing each point calmly is not bureaucracy. It is your shield. Here are the aspects you must analyse with your legal adviser before signing any purchase promise in the Dominican Republic, especially if the property is in a beachfront residential complex with a golf course, spa and premium services such as Salado Golf & Beach.
Precise identification of the parties and the property
The seller —whether an individual or a company— must be fully identified: ID card, RNC or passport. And the buyer, likewise. As for the property, it is not enough to say “apartment in Bavaro”. The contract must include the cadastral designation, parcel number, unit number, floor level, surface area in square metres and boundaries. If you are buying off-plan at Salado Golf & Beach, compare the description with the scale model, the approved plans and the specification schedule. Any mismatch between what was promised and what is built can end in a claim.
Price, payment method and currency
The total price must be clear, along with its currency: US dollars, euros or Dominican pesos. In Punta Cana, almost all tourism projects are quoted in dollars. This protects the European buyer from exchange rate fluctuations. The promise must break down the payment schedule: initial reservation deposit, monthly or quarterly instalments, and final payment upon completion. Ask whether the payments go into the developer’s account or into an escrow account. I prefer the second option for new builds: the money is only released when verifiable construction milestones are met.
Completion deadline and extension clause
Every promise of purchase contract in the Dominican Republic must set a completion date. Check whether there is an automatic extension and how long it can stretch. In serious projects such as Salado Golf & Beach, deadlines are usually realistic and tied to the progress of the works. Even so, it is advisable to agree a penalty for unjustified delay: a discount or a monthly compensation if completion goes past the deadline without justified cause. This clause protects you if the developer fails to deliver. And it is especially useful when you are buying from Europe and cannot supervise the works every week.
Suspensive and resolutory conditions
Suspensive conditions are events that must occur for the contract to take full effect. The most common ones in a purchase promise in the Dominican Republic: that the buyer obtains bank financing, that the title deed verification is satisfactory and that the authorities approve the project. If any condition is not fulfilled within the agreed period, the contract can be terminated without penalty to the affected party. Always negotiate a financing suspensive condition if you plan to take out a loan. That way you do not lose your deposit if the bank says no.
Resolutive conditions, on the other hand, allow the contract to be terminated if a specific event occurs, such as a serious breach by the seller. Demand that the contract provides for the full refund of everything paid plus interest if the termination is due to a cause attributable to the developer.
Penalty clause and deposits
The penalty clause sets out the financial consequences if someone breaches the agreement. In the Dominican Republic it is customary to agree that, if the buyer withdraws without just cause, they lose a percentage of what has been paid; if the seller breaches, they must return double what they received. It is a mechanism similar to penitential deposits in Spanish law and must be drafted with surgical precision. Check that the percentages are reasonable and that the buyer is not punished disproportionately for minor delays. At Salado Golf & Beach, contractual transparency is part of the service: every buyer receives advice to understand the exact scope of these clauses before signing.
Assignments and transfer of rights
There are buyers who purchase apartments in Bávaro with the intention of reselling the contract before handover. If that is your case, look at the assignment clause: does the developer allow you to transfer your contractual position to a third party? Do they charge an assignment fee? In projects with high tourist demand, assignment can be a profitable exit, but only if the contract expressly authorises it. If your goal is long-term holiday rentals, the estimated return of 8% to 12% per year in Punta Cana makes holding the property almost always more attractive than assigning the contract.
Governing law and dispute resolution
The promise of purchase in the Dominican Republic is governed by the Dominican Civil Code and Law 108-05 on Real Estate Registry. Check that the contract expressly states the competent jurisdiction for resolving disputes. Many international developers prefer arbitration: faster and more specialised than the ordinary courts. If the contract includes an arbitration clause, confirm which institution will administer the process and which rules will apply. For European buyers, this provision is key. Avoid long and costly cross-border litigation.
How to negotiate favourable clauses when buying in Punta Cana
Negotiating does not mean distrusting the developer. It means professionalising your investment. In the Bávaro property market, serious projects accept reasonable adjustments to deadlines, penalties and suspensive conditions. Salado Golf & Beach, for example, works with advisers from Residencial Group who support European buyers throughout the process, facilitating communication with the Dominican legal team. Always ask that modifications agreed verbally be put in writing in the contract or in an addendum signed by both parties.
If you plan to rent out the apartment when you’re not using it, ask whether the contract allows tourist exploitation from day one. At White Sands, the combination of beach, golf course and spa attracts a premium guest profile that sustains the estimated profitability even in mid-season. Make sure the promissory agreement does not prohibit holiday rentals or limit the number of weeks of exploitation.
Mistakes to avoid when signing a promissory purchase agreement
The first mistake: signing without independent legal advice. Even if the developer offers you their own lawyer, hire a professional who defends exclusively your interests. The cost of a contract review in the Dominican Republic is low compared with the value of the property and the risks you avoid. The second mistake: not verifying the construction licence and the environmental permits of the project. A beachfront residential development in Bavaro must comply with strict coastal regulations; if the developer cannot demonstrate the permits, walk away.
The third common mistake is failing to put the complementary agreements in writing: delivery deadlines for common areas, quality of finishes, brand of appliances, type of windows. Anything not included in the contract or its annexes will be difficult to claim. Demand a detailed specification of finishes as an annex to your promissory purchase agreement in the Dominican Republic.
To wrap up
Signing a promissory purchase agreement in the Dominican Republic sets the rules of the game for your investment in Punta Cana. Carefully reviewing the identification of the property, the payment schedule, the delivery deadline, the suspensive conditions, the penalty clause and the applicable law allows you to buy with legal certainty and peace of mind. In a market as active as Bavaro’s, where the record tourist demand of 11.6 million visitors in 2025 is driving estimated returns of 8% to 12% per year, the difference between good and poor negotiation can mean thousands of pounds.
If you’re considering an exclusive beachfront apartment with a golf course, spa and premium services, Salado Golf & Beach at White Sands offers a clear legal framework and professional support throughout the entire purchase process. Before signing, get proper advice, negotiate what matters and protect your investment from the very first document. Your future in the Dominican Caribbean deserves it.