The entity proposes a series of adjustments to improve the legislation.
SANTO DOMINGO.- The Association of Real Estate Agents and Companies (AEI) believes that the current version of the draft General Law on Real Estate Rentals and Evictions , approved in its first reading in the Chamber of Deputies, requires review in order to guarantee an adequate balance between the rights of tenants and landlords .
The association, which brings together more than 1,500 real estate agents and 59 companies from the country's main destinations, recognizes that the proposed modernization of the rental system represents a significant step forward that provides greater legal certainty to the Dominican real estate sector.
In a statement , the association highlights that the initiative includes very positive such as unification of regulations, comprehensive regulation of contracts, flexible banking of the security deposit, incorporation of insurance policies and more balanced eviction procedures.
“However, we identified critical aspects that require review before final approval to ensure an appropriate balance between the rights of tenants and landlords,” the document highlights.
The document, signed by the board of directors, outlines five aspects that it believes need improvement in the proposal approved on June 25th in its first reading in the Chamber of Deputies:
1-Disproportionate criminal classification
The report cites prison sentences of 3-5 years for property owners who fail to fully exhaust the legal eviction process. According to the AEI, the resulting impact would affect the fundamental right property and could discourage formal real estate investment, noting that criminal penalties should not be applied to violations of civil procedures.
In that regard, he proposes keeping this aspect exclusively within the civil . “Violent acts or physical assaults are already automatically covered by general criminal law and its Penal Code,” he asserts.
2-Alteration of the contractual expenses regime
It emphasizes that automatically assigning legal expenses to the landlord contradicts Article 1593 of the Civil Code, pointing out that it would alter the principle that the party with the primary interest in the transaction bears the costs. In this regard, it suggests respecting the traditional practice where the tenant assumes these legal expenses.
3- Risk of setting a precedent in real estate sales and evasion of real estate services
whoever hires pays’ rule could set an unfavorable precedent in sales and negatively affect the bill for the regulation of real estate services and brokerage currently before Congress,” argues the AEI, maintaining that this measure could encourage buyers and tenants to contact owners/builders directly to avoid paying “commissions,” bypassing the role of the real estate agent or advisor.
It recommends defining the scope to avoid broad interpretations and protect professional real estate brokerage.
4-Omission regarding deposit interest
According to the AEI document , the draft bill does not include the interest generated by the security deposit in favor of tenants, which is a step backward compared to Law 4314 that did recognize these rights, so the entity believes that this express provision on interest on the deposit should be included.
5-Conceptual confusion: deposit vs. advance payment
According to the AEI, the bill does not clearly distinguish between a security deposit and an advance payment of the first rent, which " hinders" the standard "2+1" scheme (two monthly deposits + one prepayment), and therefore requests clarification that the limit of two monthly payments does not include the first month of rent.
The organization states that it supports the modernization of the rental system but considers it essential to make the indicated adjustments to guarantee the legal certainty required by the sector, avoid negative effects on real estate investment, maintain the balance between the rights of owners and tenants, and preserve the professional market practices that do work.
“It is essential to correct these aspects before final approval in order to achieve a law that truly contributes to the sustainable development of the Dominican real estate sector, benefiting both owners and tenants,” the statement concludes.
