Specific Scenarios

Buying Pre-Construction Property in the Dominican Republic: How Financing Works and What to Watch For

How developer payment plans, deposit structures, and construction-to-permanent mortgages work in the DR — and the specific risks that catch foreign buyers off guard

September 2026 · 9 min read

Pre-construction (en planos) purchases are among the most common ways foreign buyers enter the Dominican Republic property market. Developers offer attractive pricing, staged payment structures, and CONFOTUR certification on new builds. But the financing mechanics are fundamentally different from buying a completed property — and the risks are real.

This guide explains how pre-construction financing actually works in the DR, how developer payment plans interact with bank mortgages, and the due diligence steps that protect buyers who cannot inspect what they are buying.

How Pre-Construction Financing Works in the DR

Early pre-construction (en planos)

Maximum developer risk.

Project exists only as plans and permits.

Banks will NOT mortgage a non-existent property. Buyers fund this stage via developer payment plan (10–30% of price in installments).

Under construction (en construcción)

Moderate. Delays common.

Physical construction underway. Not yet habitable.

Some banks offer a conditional pre-mortgage commitment. Most wait for 80–90% completion.

Near-completion / delivery ready

Standard property risk.

90%+ complete or has occupancy permit.

Full mortgage available. Standard application and approval process.

Developer Payment Plans: Structure and Terms

Most DR pre-construction developers require a structured deposit schedule that funds construction. Typical structures look like:

Reservation deposit1–3%At reservation. Usually refundable before promesa de venta.
Promesa de venta signing10–20%At purchase promise. Typically non-refundable.
Construction installments10–20%3–5 installments tied to milestones (foundation, structure, roof, finishing).
Balance at delivery (escritura)60–80%Funded by mortgage proceeds at closing.

The critical implication: the 20–40% paid before delivery is your equity — it comes from your own funds and is not mortgageable. The bank mortgage funds the balance at delivery. This means your total cash requirement before the mortgage funds is higher than for a resale purchase.

Pre-Construction Due Diligence: The Non-Negotiables

Verify the developer's track record

Ask for completed projects by the same developer. Visit completed buildings if possible. No completed DR projects = substantially higher risk.

Confirm permits and approvals

Valid construction permit from ayuntamiento, CONFOTUR certificate if claimed, registered promesa de venta system with fiducia protecting deposits.

Use a fiducia for deposits

The DR has a regulated fiducia (trust) mechanism where pre-construction deposits are held by a regulated entity — not the developer. Only released upon construction milestones.

Review the promesa de venta carefully

Must specify: exact unit, exact specifications, delivery timeline with penalty clauses, what happens if delivery is delayed, and dispute resolution mechanism.

Confirm the title path to Certificado de Título

Multi-unit developments require a separate proceso de propiedad horizontal to create individual unit titles. Confirm this is in motion.

Get a bank pre-approval before committing large deposits

Confirm mortgage viability before paying 20–30% in pre-construction deposits. A pre-approval at the promesa stage prevents being committed without financing at delivery.

CONFOTUR and Pre-Construction: Key Points

New construction is where CONFOTUR certification is most common and most valuable. Buying en planos from a CONFOTUR-certified developer means you receive the full benefit period from the start of operations — potentially 20 years.

However: confirm the CONFOTUR certificate is issued (not just applied for) and covers your specific unit type. Some developers obtain CONFOTUR certification for the hotel/resort component of a development but not the residential component.

Frequently Asked Questions

Pre-construction offers upside — but requires more diligence than resale

Buying en planos can deliver better pricing, longer CONFOTUR benefit windows, and newer construction quality. But it requires careful developer vetting, fiducia-protected deposits, a pre-approval in hand before committing large sums, and realistic timeline expectations. With those protections in place, pre-construction is a viable and often attractive entry point into the DR property market.

Get Pre-Approved First