How to Sell (Assign) a Pre-Construction Unit in the Dominican Republic Before Completion

Buying off-plan in the Dominican Republic can look like a smart play: you lock in a price early, pay in installments, and watch the value climb as construction advances. But what if you want (or need) to exit before the developer hands over keys? Assigning your pre-construction contract — often called a "flip" — is legal and common in the DR, but it's governed by the fine print of your purchase contract, developer policies, and Dominican civil and tax law. Get it right and you close cleanly. Get it wrong and you can lose your deposit, trigger unexpected taxes, or end up in a dispute you can't win from abroad.

This guide walks you through how the assignment process actually works, what documents you'll need, who pays what, and the traps that catch foreign sellers most often.

What "Assigning" a Pre-Construction Unit Actually Means

When you buy off-plan, you typically sign a Contrato de Promesa de Venta (Promise of Sale) or a Contrato de Reserva followed by a Promise of Sale. You do not yet own titled real estate — you own contractual rights to receive a specific unit once it's built, delivered, and the Certificado de Título is issued in your name.

To sell before delivery, you have three practical routes:

• Assignment (Cesión de Derechos) — You transfer your contractual rights and obligations to a new buyer. The developer must consent, and a new contract (or an addendum) is signed with the incoming buyer.
• Simultaneous close at delivery — You wait until the unit is deliverable, take title in your name, and immediately resell. This triggers a full 3% transfer tax cycle and usually higher friction.
• Back-to-back closing at delivery — Title passes to you and to your buyer in the same act. Legally cleaner than it sounds, but only some developers and notaries will coordinate it.

For most sellers flipping before completion, Cesión de Derechos is the cleanest path.

Step 1: Read Your Contract Before You Do Anything Else

Every developer handles assignments differently. Pull your Promise of Sale and check for:

• Assignment clause — Does it explicitly allow, restrict, or prohibit assignment? Some contracts prohibit resale until a certain construction milestone (e.g., 50% paid, or roof complete).
• Developer consent — Almost all contracts require the developer's written approval of the new buyer.
• Assignment fee — Developers commonly charge a fee to process the cesión. This varies widely by project; ask the developer's legal office in writing for the current amount.
• Price restrictions — A few developers restrict the resale price (usually so you can't undercut their own inventory).
• Payment status — You'll typically need to be current on your installments before the developer will approve a transfer.

If your contract is silent, Dominican civil law generally allows assignment with the counterparty's consent. But "generally" is not "always" — have a licensed independent Dominican attorney (not the developer's lawyer, not your agent's referral) read the specific clauses.

Step 2: Price It Realistically

Off-plan resales compete with the developer's own remaining inventory and with other assignees. To price well:

• Check what the developer is currently asking for comparable unfinished units in the same project.
• Factor in incentives the developer offers new buyers (extended payment plans, furniture packages, closing credits) that you cannot match.
• Understand that your buyer is taking on construction risk you've already partially absorbed. That's worth something — but not always as much as you'd like.
• If the project is CONFOTUR-certified (Law 158-01), the transfer-tax exemption typically applies to the first titled buyer. A resale buyer buying your contractual rights before title issues may still qualify in some structures, but not automatically — confirm project-by-project with the developer and your attorney.

Step 3: Find a Buyer

You have three main channels:

• The developer's own sales team — Some projects will resell your unit for you (for a commission) alongside their inventory. Convenient, but they'll usually prioritize their own units.
• Independent brokers — Commissions in the DR typically run in the 5–8% range plus 18% ITBIS on the commission. Negotiate in writing and confirm who pays.
• Direct listings — Portals, social media, expat networks. Cheaper but slower and more exposed to unqualified inquiries.

Whichever channel you use, ensure any listing agreement is non-exclusive unless the broker earns the exclusivity, and that the commission triggers only on closed cesión, not on introductions.

Step 4: Documents You'll Need

For the assignment to close, expect to produce:

• Your original Promise of Sale and any addenda
• Proof of all payments made to the developer (receipts, wire confirmations)
• A current account statement from the developer showing your balance
• Your passport (and cédula if you have one)
• If you bought through a Dominican SRL, the company's constitutive documents, RNC, and shareholder authorizations
• Source-of-funds documentation for the incoming buyer (required by developers under DR anti-money-laundering rules, Law 155-17)

The new buyer will sign either a Contrato de Cesión de Derechos or a fresh Promise of Sale directly with the developer, with your original contract formally rescinded.

Step 5: Who Pays What

Rough allocation (always confirm in writing):

• Seller (you): broker commission (if any), your own attorney fees, any capital gains tax owed on your profit, and — depending on the developer — part or all of the assignment processing fee.
• Buyer: developer assignment fee (often), their own attorney fees, and eventually the 3% transfer tax (ITI) when title is issued. ITI is paid by the buyer to DGII, calculated on the higher of the contract price or the DGII appraisal.
• Notary fees: typically split or borne by the buyer, per local custom and contract.

Step 6: Taxes on Your Profit

This is where sellers most often get bad information. Key points:

• Capital gains on Dominican real estate for individuals is not a flat 27%. It is taxed as ordinary income on a progressive scale (roughly 0–25% for individuals) on the inflation-adjusted gain. The 27% rate is the corporate rate and applies if you bought through an SRL or foreign company.
• The taxable gain is calculated after adjusting your acquisition cost for inflation using DGII's official indices and deducting documented, allowable costs.
• If you never took title (pure assignment before delivery), the tax characterization can differ — DGII may treat the profit as ordinary income from the sale of a right. Get a contador (Dominican CPA) to model your specific case.
• Your home country will likely also tax the gain (US citizens: worldwide income; Canadians: worldwide with foreign tax credits; EU varies). Coordinate with a cross-border tax advisor.

Tax law and DGII interpretations change. Verify the current treatment with DGII or a licensed Dominican contador before you commit to a price.

Common Pitfalls

• Skipping developer consent. A "side deal" with a buyer where you promise to transfer later is unenforceable against the developer and exposes you to breach.
• Selling a unit you're behind on. Developers won't approve the assignment if you're in arrears — clear your balance first.
• Assuming CONFOTUR exemptions transfer automatically. They often don't for the resale buyer. Overpromising this can kill the deal at closing.
• Using the developer's or buyer's lawyer. Always retain your own independent Dominican attorney.
• Ignoring FX and wire compliance. Both sides need clean source-of-funds documentation; sloppy wires get frozen.
• Not budgeting for the assignment fee. Learn the amount in writing from the developer before you list.

Short FAQ

Can I assign if the project is delayed? Yes, but delays reduce buyer appetite. Read your contract's delay and force-majeure clauses; your remedies against the developer may be assignable too.

Do I need to be in the country to close? No. A Poder Especial (Special Power of Attorney), properly notarized and apostilled abroad, lets your Dominican attorney sign for you.

What if the buyer wants to renegotiate with the developer directly? Common. The developer may prefer to rescind your contract and issue a fresh one. Make sure your profit is paid to you at signing, not conditioned on future events.

How long does an assignment take? Typically 4–8 weeks from signed offer to funded closing, depending on developer responsiveness and the buyer's due diligence.

Dominican laws, tax rates, and DGII thresholds change, and every project's contract is different. Before you sign anything, confirm the specifics with an independent licensed Dominican attorney, a contador for the tax side, and the relevant authority (DGII for taxes, Jurisdicción Inmobiliaria for title matters).