This week I received a call from a dear colleague, a highly professional and skilled professional. Her concern was significant: a buyer, accompanied by her lawyer, had asked her to structure a real estate sale using two contracts. One, for the actual price, would remain confidential between the parties. The other, for a lower value, would be used to pay the property transfer tax to the Dominican Republic's Internal Revenue Service (DGII), with the clear objective of reducing the tax payment.
My colleague, quite rightly, refused. She explained that this practice constitutes tax evasion and is not only improper but illegal. What followed was deplorable: the buyer's lawyer—who is also subject to these regulations—confronted her with insults and profanity, accusing her of abusing the client, of "making her pay more taxes," and of overstepping her bounds by actions that—according to her—were not within her purview because she is not a lawyer.
This episode, more common than many admit, raises an uncomfortable but necessary question: What is the real estate agent's actual role in a purchase and sale transaction?
Not everything that seems permitted is right, just because "paper can handle anything."
In law—as in life—not everything that isn't expressly prohibited is legitimate. A double contract doesn't need to be described word for word in a law to be illegal. It's judged by its purpose and its effects: concealing the true price of a transaction to artificially reduce the tax base constitutes tax evasion and a risky behavior related to money laundering.
Dominican legislation is clear. Law 155-17 integrates real estate agents into the anti-money laundering system as non-financial obligated entities, and General Regulation 03-18 of the DGII (General Directorate of Internal Revenue) imposes specific duties of due diligence, customer knowledge, and risk mitigation. The agent is not a neutral observer: they are a responsible participant in the transaction.
“I only sell” is no longer a valid excuse
To say that real estate agents "only sell" is to misunderstand the evolution of the sector and the role assigned to them by law today. Agents do not provide tax advice, do not replace lawyers, and do not design contractual strategies, but they do have a legal and ethical obligation not to facilitate, tolerate, or remain silent in the face of simulated contractual structures.
Rejecting an irregular transaction is not abuse of power; it's professionalism. Warning that a practice is illegal is not overstepping your bounds; it's fulfilling your duty.
Professional ethics and shared responsibility
In addition to the above, there is an ethical commitment. The Code of Ethics of the Association of Real Estate Agents and Companies (AEI) requires acting with transparency, legality, and loyalty towards all parties, protecting not only the immediate client but also the integrity of the real estate market.
When an agent enters into a double contract, the consequences don't fall solely on them. The buyer is exposed to future problems related to real value, resale, inheritance, tax audits, and capital gains. The seller faces tax contingencies, adjustments, fines, and surcharges. The lawyer or notary involved incurs disciplinary and criminal liability. And the agent, in addition to legal sanctions, risks something much harder to recover: their reputation.
The fact that changes the narrative
The most interesting thing about this story is that the sale did go through. There was no double contract, no sham transaction, and no shortcuts. There was sound legal judgment, clear information, and a transaction conducted in accordance with the law by a real estate agent who understands that she not only sells but also advises and knows the law.
This outcome debunks a widespread myth in the industry: that an agent who sets legal limits "loses the sale." The reality is quite different. When an agent acts firmly and with legal expertise, they don't hinder the transaction; they streamline, clarify, and protect it.
A reflection that transcends the law
The apostle Paul expressed it clearly centuries ago: in 1 Corinthians 6:12, “Everything is permissible for me, but not everything is beneficial.” Law and ethics agree on one essential point: the silence of a rule does not legitimize conduct that is born to deceive.
This story isn't about a failed sale or a personal conflict between professionals. It's about the true scope of the real estate agent in a market that demands ever-increasing responsibility.
Because today, more than ever, the real estate agent who remains silent is also responding.
