Fideicomiso in the DR: How a Real-Estate Trust Works

A real-estate fideicomiso in the Dominican Republic, under Article 3 of Law 189-11, is the act of transferring assets or rights to a licensed fiduciary, which holds them in a separate patrimony and administers them for the beneficiaries. Off-plan projects often use it to hold the land and buyer payments. On its own, it does not guarantee on-time delivery.

What is a fideicomiso in the Dominican Republic?

If a salesperson tells you an off-plan (en planos) apartment “has a fideicomiso,” that is not a promise the tower will be finished. It is a specific legal institution, created by Law No. 189-11, para el Desarrollo del Mercado Hipotecario y el Fideicomiso en la República Dominicana, enacted on July 16, 2011. The official text is in the Law 189-11 PDF published by the Superintendencia de Bancos (checked November 12, 2026), with a context page for the law and its regulations.

In plain terms, Article 3 works like this: one or more settlors (fideicomitentes) transfer assets or rights to a licensed legal entity — the fiduciary (fiduciario, or fiduciaria when it is a company) — to form a separate pool of assets, the trust patrimony (patrimonio fideicomitido). The fiduciary administers that pool under the constitutive act (acto constitutivo), for named beneficiaries or fideicomisarios, and when the act ends must return the assets to whoever the act names, or as the law provides.

These are the four roles:

• The settlor (fideicomitente) is the person or company that contributes the assets. In a pre-construction project this is often the developer, contributing the land. Don’t assume it: ask for the constitutive act, and have your lawyer tell you who plays this role in this project.
• The fiduciary is the licensed legal entity that receives those assets and administers them. It is not just any company that puts “fiduciaria” on the door.
• The trust patrimony is the pool of assets and rights held separately, under its own rules.
• The beneficiary or fideicomisario is the person for whose benefit that patrimony is administered. In an off-plan project, buyers often appear here — if the act says so. Don’t generalize. Ask for the document, and have your lawyer explain what standing you have.

The DGII’s fideicomiso page restates the same idea, and adds a point worth keeping: the fiduciary must not guarantee results or returns.

A handshake is not enough. Article 12 of Law 189-11 requires a notarial authentic act, or a private instrument whose signatures a notary has legalized. Verbal fideicomisos are void and have no effect. If someone tells you “we’ll set it up later” or “it’s a verbal trust,” that is not a fideicomiso under the law.

How a development fideicomiso works

The form that matters most if you are buying off-plan is the real-estate investment and development fideicomiso. Article 58 of Law 189-11 describes it as a separate patrimony, managed by a fiduciary, for the account and at the risk of the beneficiaries. Its main purpose is investment in real-estate projects at various stages of design and construction, to complete and sell them, or to lease them. The DGII lists this same type among the modalities the law recognizes.

The usual cycle looks like this:

1. The land — and, if the act so provides, buyer payments, including the down payment (inicial) and later installments — go into the trust’s patrimony, not into the developer’s personal pocket.
2. The fiduciary administers that patrimony by following the constitutive act. It does not improvise. Article 29 requires it to register the transfer of real estate into the patrimony, to follow those instructions strictly, to administer “as a good head of household” (como un buen padre de familia) in the sole interest of the beneficiaries, to keep separate accounts, and to report at least twice a year if the act does not set a different schedule.
3. At the end, the unit is transferred or the assets are restored as the act provides. Article 54 is clear on the essential point: once the fideicomiso ends, the assets go to whoever is entitled under the act; if the act is silent, they go back to the settlor or the settlor’s successors.

“For the account and at the risk of the beneficiaries” is not decoration. A fideicomiso organizes the patrimony. It does not remove the risk that construction slips, stops, or comes out unlike the brochure. That is why the wording of the act and of your purchase contract matters, and why it is worth understanding how paying the fiduciary differs from paying the developer.

The separate patrimony

This is the protection most buyers are reaching for when they hear “fideicomiso.” Article 7 says the assets of the fideicomiso form an autonomous, independent patrimony, separate from the personal assets of the settlor, the fiduciary, the beneficiary, and other fideicomisos of the same fiduciary.

Articles 9 and 10 spell out what that isolates — and what it does not. As a rule, those assets are not part of the common pool available to creditors of the fiduciary, the settlor or the beneficiary, with the exceptions the law itself sets. They can be pursued for debts or obligations incurred by the fideicomiso itself, or if the fideicomiso was set up to defraud third parties. A conservative measure (a freeze or similar) requires prior authorization from a judge.

In other words: if the developer or the fiduciary has personal debts, those creditors generally cannot reach the land and the buyer payments already in the patrimony. That does not put the money beyond every claim. Debts of the fideicomiso itself can still reach it. And if your payments never entered that patrimony — if they went to a personal account or to the developer’s operating account, without a documented explanation — Article 7 is not isolating them. That is why you should not send funds until you have the account details and written confirmation.

How it is formed and registered

Besides the notarial form in Article 12, the fideicomiso has to be on the public record. Article 17 requires the constitutive act and any amendments to be registered at the Mercantile Registry of the Chamber of Commerce and Production for the fiduciary’s domicile, without prejudice to other filings that the nature of the assets may require.

When real estate is transferred into the fideicomiso, that transfer is recorded at the Registry of Titles (Registro de Títulos). The Jurisdicción Inmobiliaria documents the filing “Constitución de Fideicomiso”, under Law 108-05 on Real-Estate Registration, of March 23, 2005, and Law 189-11. If the project’s land has not been transferred and recorded, what you are being told is a “separate patrimony” may not yet be opposable to third parties.

The fiduciary must also enroll the fideicomiso in the National Taxpayer Registry (RNC) with the DGII, which lists the filing requirements. Confirm specific deadlines, and the process when the settlor is a foreign company, with your lawyer and with the DGII.

Among the regulations in this area, the Superintendencia de Bancos lists the Reglamento sobre Fideicomiso (Decree No. 95-12), published as in force. This guide does not paraphrase it. If it bears on your project, have your lawyer read it with the constitutive act.

Who may act as fiduciary, and who supervises

“Fiduciaria” is not a free-for-all trade name. Article 25 of Law 189-11, as amended by Law 249-17, limits who may act as fiduciary: legal entities formed under Dominican law whose exclusive purpose is to act as fiduciaries; multiple-service banks; savings and loan associations; and other financial-intermediation entities previously authorized by the Monetary Board (Junta Monetaria).

Supervision depends on the type of entity and on the fideicomiso:

• Paragraph I of Article 25 assigns to the DGII the registration of exclusive-purpose companies and, on the terms of that paragraph, the supervision of those fideicomisos, “without prejudice to the supervision that corresponds to the type of entity.”
• Paragraph II: if the fideicomiso is tied to a public offering of securities or products, supervision sits with the Superintendencia del Mercado de Valores (SIMV).
• Fiduciaries linked to financial-intermediation entities appear on the Superintendencia de Bancos public list.

That list is a good first step, not a complete or permanent census of every fiduciary in the country. Companies may exist under the DGII regime, or in connection with a public offering at the SIMV. Check the live page on the day you are about to pay, and if there is a public offering, also check the SIMV Securities Market Registry.

If the name you are given does not appear in any of those registers, or does not match the exact legal name, stop. On that project, I would not reserve until your lawyer has established who the fiduciary actually is.

How to verify the fiduciary and the fideicomiso on this project

A well-written brochure does not protect you if the fideicomiso is not the one for this project, or if your payments never enter its patrimony. Before you pay the down payment, walk through these six steps with your lawyer. They are checks you can do yourself. They are not a service ObraCierta operates today.

1. Get the fiduciary’s exact legal name and the fideicomiso’s name in writing. A trade name is not enough. The legal name is what you will search in the registers, and it should match the payment account and the constitutive act.
2. Look it up on the Superintendencia de Bancos list and, if there is a public offering, in the SIMV Securities Market Registry. Use the current page, not an old printout. If you cannot find it, ask why, and have your lawyer check whether it sits under the DGII regime.
3. Confirm in writing, with the fiduciary itself, that this project — and your unit — is under its administration. A letter or email from the fiduciary, not only from the seller. If the fiduciary will not confirm it, the fideicomiso you are being described may not be the one that covers you.
4. Pay only to an account in the name of the fideicomiso or the fiduciary. Never to a personal account. If a fideicomiso exists, do not pay the developer’s operating account either, unless you are given a documented explanation your lawyer accepts. Get the account details in writing and match them to step 3.
5. Have your independent lawyer — not the seller’s — read the constitutive act, especially the rules for releasing funds: when the fiduciary may disburse, against what milestone, and what happens if construction slips. A loosely drafted act means loose protection. Article 29 requires the fiduciary to follow the act, not to invent a stricter standard.
6. Confirm that the project’s real estate has been transferred and recorded at the Registry of Titles, following the Jurisdicción Inmobiliaria filing. Without that recording, a separate patrimony over the land may not be opposable to third parties.

If any of these six points is still open, do not send funds. In that state, I would not reserve.

What a fideicomiso does not cover

It does not guarantee that the building will be finished, finished on time, or delivered to the quality in the render. Law 189-11 creates a separate patrimony and requires the fiduciary to follow the constitutive act. It does not set delivery deadlines or a finish standard. Those terms live in your purchase contract and in the trust’s instructions. A weakly drafted fideicomiso protects less than a brochure may imply.

It does not guarantee appreciation or rental income. Article 58 describes a purpose — investment, sale or lease — not a result. We do not project returns.

It does not cure a loosely drafted constitutive act. If the instructions allow funds to be released with little control, the fiduciary, by following the act, may disburse that way. The protection is in what the document says.

It does not cover money that never entered the patrimony. If you paid an account that is not the fideicomiso’s or the fiduciary’s, the isolation in Articles 7, 9 and 10 is not working on that money.

It does not, by itself, cure a defect in title if the land was not properly transferred or recorded. A fideicomiso is not a substitute for reviewing the title (título), the legal status and any annotations.

And it does not, by itself, tell you what usually happens if construction stops. That depends on the contract, the act, and whether the money was in the patrimony. Read that before you reserve.

For a wider look at the risks of buying off-plan, start with is it safe to buy pre-construction?. If you are a foreign buyer and want to understand first whether you can purchase, there is a guide for that.

“Escrow” and fideicomiso: how they compare

Buyers, especially from the United States, often hear “escrow account” or “how escrow works in the Dominican Republic” as if it were the same thing as a fideicomiso. They share a purpose: a third party administers someone else’s assets. They are not the same legal institution.

In the Dominican Republic, the statutory figure is the Law 189-11 fideicomiso: a separate patrimony, formed with formalities — a notary, mercantile registration and, if there is real estate, recording at the Registry of Titles — and administered by a licensed legal entity. An informal “escrow account” — a verbal arrangement, or a seller’s “separate” account — is not the same thing. Without a constitutive act and a licensed fiduciary, you do not have the separate patrimony of Articles 7, 9 and 10.

If you are offered “escrow,” ask whether what exists is a Law 189-11 fideicomiso, who the fiduciary is, and where it is registered. In the DR, ask for that figure.

What it costs, and which taxes apply

What a real-estate fideicomiso costs depends on the documents, not on a market price we can publish.

Article 35 presumes the trust is paid, unless the constitutive act expressly says the fiduciary receives no remuneration. If the act is silent, the default legal fee is 0.5% a year of net patrimony, payable once accounts have been rendered and approved, and collectible from the trust’s cash flows. The article itself makes clear that the act may set a different fee. That 0.5% is not “what you will pay” and is not a market rate: it is the fallback if the act says nothing. In practice the act often sets a different fee. Ask in writing who bears it — the project, the developer, the buyers — and do not assume a number.

On taxes, Articles 45 to 47 of Law 189-11 set a specific regime: exemptions on constitution, amendment or termination of the fideicomiso and on certain later transfers, and their own rules for income tax, the real-estate property tax (IPI) and capital gains, with different treatment when there is a public offering. We do not reduce those articles to a single rate here. The DGII’s fideicomiso page explains the fiduciary’s tax duties in the trust’s name, including payment of the real-estate transfer tax when it applies. Confirm the treatment of your transaction with a tax adviser and with your lawyer.

When that property transfer tax applies, the DGII’s official calculator (checked November 12, 2026) computes it as 3% of the acquisition value. These figures can change; confirm them with your lawyer.

In a project classified by CONFOTUR, under Law 158-01 on the promotion of tourism development, the Tourism Promotion Council lists an exemption from the transfer tax on real-estate rights and from the real-estate property tax (IPI). Article 9 of Law 195-13 (enacted 13 December 2013; Official Gazette No. 10739 of 20 December 2013; DGII PDF, checked 12 November 2026), which amended Article 7 of Law 158-01, sets the fiscal-exemption period granted to companies engaged in the tourism activities listed in Article 3 at fifteen (15) years, starting from the date of completion of the project’s construction and equipment works. Under Paragraph IV of Article 4 — added by Article 7 of the same Law 195-13 — the exemptions in that law are to be enjoyed by natural or legal persons who make one or more investments directly with the promoters or developers; any later transfer to third-party purchasers is excluded from those benefits. That is not automatic, and this guide does not state that a particular unit is exempt: ask for the classification resolution, and have your lawyer confirm whether it applies to your unit. A CONFOTUR classification does not replace a fideicomiso, or a reading of the constitutive act. These figures can change; confirm them with your lawyer.

Fund release and inspections: what has to be designed

Does the fiduciary release money as construction advances, and does someone independent inspect before each disbursement?

Law 189-11 does not require independent inspections or a milestone-based release of funds. What it requires, in Article 29, is that the fiduciary follow the constitutive act to the letter. If that act is precise — funds are released against a verifiable milestone, with a report the developer did not write — the protection is stronger. If it is loose, the protection is loose. That has to be designed and demanded in the documents. It is not a given.

A sound design ties release to milestones that can be checked, and states in writing what happens if a milestone is missed. Take that list to your lawyer before you sign, and use the pre-construction protection checklist.

ObraCierta is building a model in which the buyer’s money sits with a licensed fiduciary and is released after independent inspections. That service is not yet in operation. In the meantime, these guides explain what to ask for in the act and in the contract. The planned model is that the buyer does not pay for that protection; the developer does. Today that is a design under construction, not a service you can use.

Frequently asked questions

What is a fideicomiso in the Dominican Republic?

A fideicomiso is the Dominican trust created by Law 189-11. One or more settlors (fideicomitentes) transfer assets or rights to a licensed fiduciary, which holds them as a separate patrimony and administers them for named beneficiaries. It must be executed before a notary; a verbal promise is not a fideicomiso.

How does a development trust work?

In a development fideicomiso (Article 58), a fiduciary manages a separate patrimony whose purpose is a real-estate project in design, construction, sale or lease. The land and, if the documents so provide, buyer payments go into that patrimony — not the developer’s personal pocket. The fiduciary must follow the constitutive act, not improvise.

Does a fideicomiso guarantee on-time delivery?

No. Law 189-11 creates a separate patrimony and requires the fiduciary to follow the constitutive act. It does not set delivery deadlines or finish quality. Those terms live in your purchase contract and in the trust’s instructions. A weakly drafted fideicomiso protects less than a brochure may imply.

How do I verify the fiduciary?

Get the fiduciary’s exact legal name and the trust’s name in writing. Check the Superintendencia de Bancos list and, if a public offering is involved, the SIMV Securities Market Registry. Confirm with the fiduciary itself that this project is under its administration and that your payments will go to an account in its name or the trust’s.

Is a fideicomiso the same as an escrow account?

They share a purpose — a third party administers someone else’s assets — but they are not the same legal institution. In the Dominican Republic the statutory figure is the Law 189-11 fideicomiso: a separate patrimony, with formal constitution and registration. An informal “escrow account” without a licensed fiduciary is not the same thing.

How much does a fideicomiso cost?

It depends on the documents. Article 35 presumes the trust is paid: if the constitutive act is silent, the default legal fee is 0.5% a year of net patrimony, payable from the trust’s cash flows. In practice the act often sets a different fee. Ask who bears it; do not assume a market price.

What to do next

Before you reserve, walk through the protection checklist and read what changes if you pay the developer instead of a fiduciary. ObraCierta is building a model in which the buyer’s money sits with a licensed fiduciary and is released after independent inspections; that service is not yet in operation. In the meantime, these guides are free. The planned model is that the buyer does not pay for that protection; the developer does. If you decide to move forward on a project, take these questions to an independent lawyer.