By Escarlin Pozo
El Inmobiliario
SANTO DOMINGO - According to real estate lawyer Ana Bello, there is a formula that will allow the Dominican Republic to reduce bad practices within the real estate sector.
This combination includes the incorporation of modern legislation, its effective regulation, and the implementation of professional advice by market workers.
The specialist assured that real estate agents must play the role of comprehensive advisors during the process they carry out with their clients, which goes from the beginning of the transaction to the delivery of the property.
He also specified that "they must work in collaboration with other professionals such as lawyers, surveyors and appraisers, ensuring that the process is transparent and free of irregularities.".
Following the Novasco Real Estate case, in which the Public Prosecutor's Office took over through "Operation Cheetah", alleging that hundreds of people were affected by the sale of fake properties, he stated that these can be prevented through a series of measures to be taken into account.
First, he indicated that "due diligence should be carried out on both the property and the developer" before marketing a project or executing a real estate transaction.
Ana Bello. (EXTERNAL SOURCE).
“It is essential to verify ownership, liens and encumbrances, tax status, the seller's legal capacity to dispose of the property, and the existence of permits. It is important to ensure that contracts are well-structured and signed on time,” he explained.
Furthermore, Bello stated that the works must be constantly monitored to detect any irregularities over time.
“Any warning sign should be cause for evaluation and, if necessary, a timely exit from the business before it becomes a scam,” he added.
Among its recommendations, it urges people to go to established real estate agencies and demand accurate information from real estate agents about each project, assuring that it is crucial to have professionals who demonstrate experience and knowledge in the area.
In an interview with El Inmobiliario, she mentioned that agencies must ensure their clients invest in projects from developers with a proven track record and, above all, that they have the financial capacity to respond to any problems.
He also recommended that people opt for projects with fiduciary management, as it provides "greater security for the investment".
Constant growth
“Despite challenges such as rising construction material costs and some cases of fraud, the real estate sector has maintained its growth. These challenges have underscored the need to strengthen legal security and investor confidence,” the lawyer stated.
He stated that organizations, such as the Association of Real Estate Agents and Companies (AEI) and the Dominican Association of Housing Builders and Promoters (Acoprovi), “are promoting initiatives to protect clients and raise the standards of the sector.”.
To emphasize the above, he added that the country's success in events such as the International Tourism Fair (FITUR) demonstrates that there is confidence among investors who are setting their sights on the country.
“The fact that foreign construction companies are coming to the country to develop also demonstrates that the sector is strengthening,” he commented.
Outdated legislation
She expressed this while acknowledging a pressing reality. The specialist emphasized that the Dominican Republic has outdated legislation that requires attention.
He indicated that Law 5038, on condominiums and the legislation that regulates rentals, "must be carefully reviewed because they are no longer operational for the behavior of the sector.".
In the process of updating this legal framework, it proposes that transparency and clear documentation should be required from real estate companies and agents, mandatory training and certifications should be promoted, and digital platforms that verify the legality of projects and transactions in the country should be implemented.
