say it aint so JOE

[joeb]

i signed a contract to purchase a house in santo domingo in november.
i returned in january to close and found out that the owner had no title
and would take months to obtain one...so i told him that i needed a house
this winter and would look elsewhere..... i remember him telling me on the phone that if i didnt take the house that he would call the embassy and restrict me from coming to the country again...is this possible ?

[MerengueDutchie]

I would recommend to ask our legal resident for a definitive answer but this is my take..

1) The guy sold you something he didn't have and you found out
2) You're saying well the deal is off then and you're not even going after him for trying to conn you
3) He then tells you that he will bar you from the country?

Legally, in my country, this would fall under failure to abide by the obligation of delivery by the selling party, the buyer can than demand delivery within a said period (say three months) after which the buyer is free to terminate the contract. Any damagaes arising out of this failure would be payable by the seller.

Unless he is the head of immigracion (or has connections to him) he cannot bar you from the country... tell him you're looking for reparations for breach of contract and expect him to pay for your house over the period it takes him to obtain the title.. you have your eye on this great place with heated swimming pool and helicopter deck and look forward to renting it...you'll deduct any expenses from the buying price and you'll let your laywers look into the possibilites of having him pursued for trying to conn you.. also tell him you're informing the embassy of his threats against you, with the request to take it up with his government..

Good luck

[Naufrago]

It's hard to advise you because the laws here are not the same as in the US. But, you shouldn't sign anything here without a Lawyer that you can trust. Property here is sometimes sold without the sellers having title, but you should be getting a discounted price. I wouldn't take the risk but it is a common practice. Did the seller say he had the Title in the contract? When I bought, my lawyer inspected their Title, and then we went straight to closing, not like in the states where first you go to contract, put money in escrow, etc. There are some differences in the way they do things down here, that won't seem right to you, but are common practice in the DR. The laws also work differently, sometimes to your favor, sometimes against, there's really no way of just using your common sense, it's not the controlling factor. Try to explain your position to this guy, reread your contract, try to keep things from getting too crazy. Get a Lawyer pronto, you'll need him/her when you find the place you want, in any case. Good Luck, Buyer Beware.

[Hillbilly]

That is a crock!

Did money change hands?

If what you signed was a promise to purchase, I don't see that he can do much since he doesn't have anything to sell!

HB

Wait for our Resident Expert to answer this before you go off the deep end.

[BushBaby]

What does YOUR lawyer that you used to organise the contract say? You DID use a lawyer didn't you? YOUR lawyer I mean, not the lawyer of the SELLER???

No way the US Embassy would be able to stop you entering the country - only the LEAVING of the US of A. Imigracion are the ones to prevent you entring & unless the person you "bought" from has excellent contacts there, I think this is all a "Let's try scam this Gringo" ploy!! A decent lawyer, the US Embassy & a couple of 'CHATS' at this guys place with some well positioned friends, will soon have him finding the Title or handing your money back (If he still HAS it!!!!!) ~ Grahame.

[el gringo 762]

i have a few esq's i'd like to use this on, but give it a try

B - breath

R - relax

A - Aim

S - slack

S - squeeze

[Snuffy]

Originally Posted by joeb

i signed a contract to purchase a house in santo domingo in november.
i returned in january to close and found out that the owner had no title
and would take months to obtain one...so i told him that i needed a house
this winter and would look elsewhere..... i remember him telling me on the phone that if i didnt take the house that he would call the embassy and restrict me from coming to the country again...is this possible ?

I am sorry...but why would someone sign a contract without first seeing that the title and all documentation is in order? Is that standard procedure? This does not sound right to me. Can someone please explain proper procedure here in this country.

[Larry]

How could you be legally bound to a contract to buy something when the "seller" dosen't legally own it? At what point in the process was the title inspection done? I would think that discovering the title is not in the sellers name should nullify any contract between the two of you where he agrees to sell you something that he claims to own...and does not.

Larry

[Fabio J. Guzman]

Legally, the US embassy has no say on who comes into the country.

As to signing a real estate contract in which the seller has no title, it is possible. However, in that case your lawyer should protect you from the possibility that title may not be obtained by delaying payment or setting up an escrow.

Quoting from my article on the purchase of real estate in the DR: (http://www.drlawyer.com/txt/articlesreal.html):

“Real estate purchases in the Dominican Republic do not usually follow the North American pattern of a written offer tendered by the buyer to the seller, followed by the seller’s written acceptance. Instead, after verbal agreement is reached by the buyer and seller on the price, a binding Promise of Sale or Option to Purchase is prepared by an attorney or notary which is signed by both parties. A deposit or advance payment is normally paid at the signing of the Promise.

Many attorneys and notaries in the Dominican Republic do not protect the buyer adequately in the Promise of Sale. Among the most common deficiencies are the following:

• The buyer is allowed to pay a large percentage of the price of sale without any security or direct interest over the property. In case of misuse of these funds, the buyer’s remedies may be limited to suing the seller personally.

Many condo buyers in Santo Domingo have suffered through this experience in the last few years. Generally, the developer uses the buyers’ funds, along with a bank loan, to finance the construction. The bank collaterizes the loan with a mortgage over the property. When the developer misappropriates the funds or runs into financial difficulties, the bank forecloses and the buyers lose both their money and “their” property.

• Payments are not conditioned on the availability of clear title or the adequate progress of construction. Sellers, therefore, can demand payment or place the buyer into default despite the fact they may not have performed their basic obligations.

• Escrow agents are rarely used. The seller, therefore, has control over the funds as they are paid.”