Real estate scams affect hundreds of people in the Dominican Republic, where the purchase of a home represents a dream of stability and success. However, this aspiration is also exploited by scammers that emotionally manipulate their victims, generating confidence with persuasive speeches.
Anyone can be susceptible if an offer that covers an urgent need is presented.
Common modalities of Scams real estate
- FALSIFICATION OF DOCUMENTS: They are presented Property titles FALSIFIED TO MAKE THAT THE LAND OR property It is legally for sale.
- Sale of real estate Nonexistent: the fraud more common is selling properties that do not exist, with falsified documents and plans.
- Identity Supplant: False identities are used or the identity of a legitimate promoter is assumed to deceive Buyers.
- Unreal promises On the profitability of investments: it is made to believe the Buyers than one investment Inmobiliaria will report enormous profits, without solid foundations that support it.
Do scams increase?
Although the general perception is that they have increased, official statistics do not reflect a significant increase.
In 2024, only in the Great Santo Domingo approximately 40,400 housing units were marketed, and fraud cases represented a minimum percentage within the market.
However, media coverage has magnified the impact of reported cases.
Recommendations to avoid fraud
Annerys MeléndezPresident of the Dominican Association of Builders and Housing Promoters (Coprovi), said that Scams real estate They are mainly committed by opportunistsand not by promoters or builders with experience in the sector.
He emphasizes that most scams are committed by opportunists without a trajectory in the sector. To avoid being a victim, recommends:
- Verify the property right and that the promoter has all legal permits, such as the construction license of the Ministry of Housing and Buildings (MIVED).
- Obtain a legal document that validates the authority of the company’s representative to sign contracts.
- Ensure that payments and contracts are in the name of the company, not of a natural person.
- Check if the project has a recognized bank financing or financing.
- Investigate the company’s previous projects to evaluate their quality and fulfillment of deadlines.
- Opt for registered companies and unions such as Coproviwhich guarantees formality and transparency.
In the event that the property already exists, that is, that it is not in plans, the lawyer Francisco Álvarez Martínez recommends requesting the property title and confirming that who sells is really the owner. If the purchase will be made through an agent (With legal power), explain that one must speak directly with the owner and review the original power to confirm that everyone is aware, even contact the acting notary to ensure that said act rose in his presence.
Álvarez Martínez also recommends verifying in the real estate registry that the property has no oppositions, mortgages, litigation or contingencies. “The ideal is to request a legal status certification of the property, which reflects the updated registration.”
In addition, it suggests requesting a surveyor to confirm that the coordinates or “points” of the plot or house physically coincide with the real location. “This ensures that we do not buy a wrong land or that the property” according to her demarcation. “
Difference between fraud and claim
Meléndez also explained the difference between a scam and one claim. A claim, he said, is an disagreement of one of the parties that can be reconciled, such as a discrepancy in prices or in the execution of the work. However, a scam is a fraudulent act where the person who receives the money never delivers The property or the project does not exist. According to Meléndez, scams can take many forms, such as the sale of non -existent lands or the impersonation of promoters identity
Trust: a solution
Two specialists in real estate They agree that a way of minimizing the risks is to invest in projects supported by real estate trust, regulated by Law No. 189-11 on mortgage and trust development.
Elizabeth Martínez explains that, in this scheme, money does not go directly to developers, but to a fiduciary that manages project funds and permits.
On his side, the expert in real estateRegis Jiménez, who is over 22 years in the sector, says that the trust allows greater control and prevents the buyers of buyers from being lost.
What do buyers look for?
“What I have seen is that most people seek to buy at the best possible price, not paying less, which are two different things,” explains the experienced agent real estate Jiménez. For him, the true intention of many Buyers It is not simply to get a low price, but a investment profitable.
In this sense, he compared situations in which Buyers They can acquire properties for 50 thousand dollars in different locations, as a way of diversifying your investment instead of looking for a “bargain.”
When addressing the issue of Scams In the sector, he said that in these cases the properties They are not necessarily below their real value, but in some they are overvalued. “They offered you certain conditions, such as sea views, which were not achieved in other parts of the city,” he clarifies, and argues that people are not buying simply for a lower price, but for the Unique characteristics of the properties.
When asked about the perception of Scams In the market real estate And if these have affected the sales. He said, according to his experience, that really what the market has slowed are not the Scamsbut factors such as increased housing prices and the high ones interest rates. “Since 2021, the increase in prices has been very significant, and together with the interest rates High, people have less purchasing power, “he said.
Factors that impact
Jiménez emphasizes that scams are not the main brake on the real estate market.
What has really slowed sales in recent years is Price increase and high interest rates, reducing the purchasing power of buyers since 2021.
To avoid real estate, it is essential to inform themselves, verify the legality of the projects and opt for developers with recognized trajectory. Financial education and caution when making decisions for purchase are the best tools to ensure a investment safe in the Dominican real estate market.
“When someone falls into a real estate scam, it is not guilty. His judgment should not be questioned, but to recognize the scam’s ability to manipulate the situation. Revictimizing the person is unfair”Psychologist
Why are we so vulnerable to falling into these deceptions?
Angelina Sosa, clinical psychologist and director of the Institute of Mental Health and Telepsychology, explains that those who perpetrate these scams are usually experts in psychological manipulation. With a convincing speech, a safe body language and a firm tone, they manage to generate a sense of absolute trust in the victim.
He states that the profile of the victims is not unique: “Any of us, at the right time, can be susceptible to a scam. It is only enough that there is a felt need and that something that covers it is offered,” says Sosa .
The dream of having a home
The expert indicates that this Universal need Having your own roof is what makes many people fall into deception. “For many, buy a dwelling It is much more than a basic need: it is a dream, a symbol of success and stability. “
However, the psychologist clarifies that this vulnerability It is not due to a lack of intelligence or capacity; It is not a matter of education or social class. “Any person, regardless of their socioeconomic level, can be victim of one scam If at that time there is a tempting offer. The key is in the need for security and emotional pressure to want to fulfill such an important dream. “
Sosa insists that a crucial aspect to avoid falling into these Fraud It is the education. He states that, although “today technology and the Internet offer us access to a lot informationNot everyone knows how to look for it or how to discern between the true and the false. “
It also points out that the influence of Recognized brands or known entities in the real estate sector It can make people lower their guard, thinking they are facing a reliable offer. For this reason, Sosa warns that it is important to understand the difference between a selling company and the construction company responsible for the work.
“The victim He did the right thing to acquire a well legitimate“Sosa adds, remembering that victims of scam They should not load with guilt.
The director of Proconsumor, Eddy Alcántara, clarified that the task of this entity related to the real estate sector is to ensure that the rights of the consumer are not violated either by the builder or by the manufacturer.
He explained that claims arrive at the entity when there is a conflict between the constructor and the consumer, either due to an increase in prices, due to problems related to construction vices or defects. “We receive that claim or complaint, we try to socialize among the parties. Otherwise, the Executive Director issues a solution directly, in accordance with the provisions, seeking to guarantee the right of the entire consumer.”
In the case of scams, Alcántara indicated that these are crimes, typified in a totally different regulation than the proconsumor, and must be addressed to the Public Ministry to intervene. After the submission of the case, an exemplary sanction or sentence is expected against those who have committed the scam. “Some cases of that nature may arrive, and we, when we detect that we are facing a scam, we immediately send them to the Public Ministry.”
