# Off-plan red flags in Punta Cana

> No permit, no CONFOTUR resolution, no escrow, no late-delivery penalty, guaranteed ROI: the short list of off-plan warning signs in the Punta Cana corridor.

Source: https://canakeys.com/diligence/off-plan-red-flags
Publisher: Cana Keys (A&M Caribbean Group SRL), Punta Cana, Dominican Republic
Last reviewed: 2026-08-27
Language: en
Licence: quote and cite with attribution and a link.

Off-plan is normal here and often the cheapest entry into a good building. The red flags are specific: no construction permit, a CONFOTUR claim with no resolution number, deposits into an operating account, a contract with no late-delivery penalty, a price that only exists until Friday, guaranteed rental returns in writing, and a developer with nothing delivered in the corridor. One of these can be explained. Two or more together is a pattern. For the full process — payment schedules, milestones and how to structure the purchase — read the off-plan guide. 2026 orientation, not legal advice.

## Walk-away signals
- No construction permit, but selling: Pre-permit sales happen. Paying meaningful money before the licence exists is a different decision, and it should be priced as one.
- 'CONFOTUR approved' with no resolution: Ask for the number and the date. Granted is a document. 'In process' is a hope.
- Guaranteed ROI or guaranteed occupancy: Nobody can guarantee nightly demand. A written guarantee usually means the number is baked into an inflated price.
- Deposit to the developer's operating account: No escrow, no trust, no protection. Your money becomes their working capital.
- No penalty for late delivery: If the contract is silent on delay, the delay is free for them and expensive for you.
- Deadline pressure on price: Real inventory scarcity is verifiable. A countdown from a salesperson is not.
- Nothing delivered nearby: First-time developers exist and some are good. Weight the risk and negotiate the payment schedule accordingly.

## Amber, not red
- Delivery date 24+ months out: Common for larger phases. Ask for milestone-linked payments so your exposure tracks progress.
- Amenities in a later phase: Check whether the pool, gym or beach club is contractually part of your phase or a rendering from phase four.
- Operator contract not yet signed: Fine early on, but do not underwrite the yield until you can read the split and the owner-use terms.

## FAQ

### Is buying off-plan in Punta Cana safe?
Answer: It can be, with permits verified, milestone-linked payments, an escrow or trust holding funds, and a contract that penalises late delivery. Without those, you are lending the developer money at zero interest with no security.
Permalink: https://canakeys.com/diligence/off-plan-red-flags#is-buying-off-plan-in-punta-cana-safe

### What if the developer never finishes?
Answer: Your remedy is whatever the contract and Dominican law give you, which is why the promise of sale must be reviewed by your own lawyer before signing. Recovery is slow and rarely complete.
Permalink: https://canakeys.com/diligence/off-plan-red-flags#what-if-the-developer-never-finishes

### How is this different from the off-plan guide?
Answer: The guide walks the whole process: payment structures, phases, CONFOTUR and how to compare projects. This page is the fast filter you use in a sales meeting.
Permalink: https://canakeys.com/diligence/off-plan-red-flags#how-is-this-different-from-the-off-plan-guide

## Related

- [Full guide: buying off-plan](https://canakeys.com/guides/off-plan)
- [How to vet a developer](https://canakeys.com/diligence/developers)
- [The buyer checklist](https://canakeys.com/diligence/checklist)
- [CONFOTUR, per project not per zone](https://canakeys.com/confotur)