SANTO DOMINGO. - Digitalization is advancing at an accelerated pace globally, and with it grows the need to guarantee legal and technological security in each country that has opened its doors to this transformation.
Sovieski Naut Fernández Director of Digital Economy and SMEs at the Association of Multiple Banks of the Dominican Republic (ABA), it is expected that by the end of this year people will be able to sign a mortgage contract digitally.
This was announced on the weekly program "La Ventana de El Inmobiliario ", where it was specified that the digital signature is already a reality in the country.
“We hope that by the end of this year, it will be possible for you to go to any of the banks or approved financial intermediation entities in the Dominican Republic and be offered the possibility of signing a 100% digital mortgage contract ,” he said.
During his speech, the economist specified that the country already has digital signature standards aligned with the European Union.
He reported that, currently, Law 126-02, on Electronic Commerce, Documents and Digital Signature, sets these parameters and legality in the nation.
He explained that the Dominican Institute of Telecommunications (Indotel) , the body that regulates digital signatures, “has been documenting and aligning itself with other regulatory frameworks” to adapt to international standards.
“In 2019, through Indotel, we adapted and today we have the legal and technological security standards that allow us to comply with the highest standards of the European Union and the world in terms of digital signatures,” he said.
But before getting into the details, in the real estate sector, it's normal to ask the following: What is a digital signature? The specialist explained that it is a traceability – a digital record of a person's signature.
Although it appears to be a traditional digital signature, it must meet certain criteria to be classified as such. This type of signature needs to identify the person signing in a digital environment to ensure that the signer is the legitimate individual and not someone else.
“When we talk about a qualified digital signature, which is perhaps the one with the highest level of legal and technological security, there is a process behind it that involves me unequivocally identifying that person. Whether it's with biometrics, or by verifying their identity with the Central Electoral Board (JCE), that's what gives the digital signature its robustness,” he specified.
Advances in digital signatures within the real estate sector
One of the biggest challenges in the Dominican real estate market is facilitating property purchases for Dominicans residing abroad, as well as ensuring the implementation of good practices to prevent fraud within the sector.
Sovieski noted that the ABA has focused on the issue of digital signatures with the main objective of simplifying processes that still required a physical presence at a bank for real estate transactions.
I mentioned that, after COVID-19, the digital transformation accelerated , with the diaspora being one of its main audiences since the pandemic, since Dominicans residing abroad had to come to the country to be able to acquire a home.
“That’s where we started working, both with the country’s public institutions and internally. We became trusted service providers. In other words, through the ABA, we offer digital signature services, with the idea that banks have a single platform through which they can offer these services to Dominicans abroad, to Dominicans here, and especially to micro, small, and medium-sized enterprises (MSMEs),” he explained.
The economist explained that the idea is that, from their homes, they can carry out any procedure, the most complex being the purchase of a home due to the countless steps that must be completed.
Considering the complexity of the process, the ABA seeks to enable users to acquire a property from the comfort of their cell phone through a single platform, thus avoiding the costs and time associated with transportation and in-person document management.
the first Dominican digital mortgage in 2023 .
During that project, a bank, along with a trust company and a construction company, helped a married couple acquire their first property through a digital signature from their cell phones.
“And we have been working with the General Directorate of Internal Taxes (DGII) and the real estate jurisdiction to expand this system, which has already been approved and is legally in place in the Dominican Republic. The goal is to make it as simple as accessing a bank's website and digitally signing the mortgage documents,” he explained.
Currently, he highlighted that they are "piloting" with the DGII so that, soon, digitally signed documents will be accepted within the real estate transfer process.
Naut stated that this process, through a bank, trust company, and by signing documents digitally, will not only reduce costs, but will also provide legal security when doing this type of business with serious and regulated entities .
Regarding real estate fraud, an issue that has impacted the real estate sector in recent years, he assures that this system will help prevent these bad real estate practices .
During his speech, he explained that “when you sign a document digitally, with a qualified signature, it unequivocally identifies the person who is carrying out the procedure and that it is done through a legal financial intermediation entity in the Dominican Republic.”.
Furthermore, he assured that this process is also carried out with construction companies from a trust that are legally registered in the country, and that have the support of having a history of implementing successful projects.
In addition, “a due diligence process is carried out on the builders who are currently developing the projects” so that there is a guarantee from the buyer who is on the other side acquiring a property.
Currently, the ABA is implementing an educational and preventative strategy on the use of digital signatures, with campaigns in the media, social networks, informational capsules and a specialized portal called " Yo Navego Seguro " so that Dominicans abroad, and in the country, receive information on the advances in legal and technological security.
To learn more about this topic, their other advancements, and how they educate the public, we invite you to watch the full interview on our YouTube channel: “La Ventana de El Inmobiliario ” .
