SANTO DOMINGO.- Lawyer Arlina Espaillat, a specialist in real estate registration law, acknowledged that the Law on Rental of Real Estate and Evictions, enacted in the Dominican Republic, seeks a balance between owner and tenant, especially in matters of eviction.
In an interview on La Ventana de El Inmobiliario, she explained that previously, under the 1955 law, eviction was a “hateful, long and unfair” process for the owner of a property, whether it was a home or a commercial establishment.
The expert indicated that, with the new law coming into effect, the deadlines will be shorter, there will be a maximum of three hearings, and the judge must rule for "prompt payment".
He explained that previously, the eviction process was immediately halted if the tenant caught up on payments, regardless of their history of delinquency. This will no longer be possible under the new regulations.
“The moment you threatened him and said, ‘Please pay me, get up to date, or I’ll sue you for eviction,’ that tenant would immediately get up to date, and the process would fall apart. But maybe you weren’t interested in continuing with that tenant because he was already a bad payer, there was already a deteriorated relationship, a pattern of non-compliance, and you wanted to terminate the contract,” he began explaining.
To this, the real estate agent added that the same will no longer happen. “As the owner, I am notifying you. You have 10 days to pay your outstanding balance. If you don't pay within those 10 days, I can proceed with eviction proceedings. Even if the tenant pays their balance outside the deadline, which is what didn't happen before, the process will not be dismissed, and the judge is obligated to rule in favor of prompt payment,” she explained.
He added that the eviction order constitutes an enforceable title, which allows, procedurally, the eviction of the tenant and the collection of the existing debt.
In light of these changes, Espaillat considered that the new law made a significant contribution, as it replaces outdated regulations and will allow for greater legal certainty in the country.
“We had an outdated law from 1955. It could have had many other changes, but, in general, it brings significant contributions that provide greater security and refresh and protect the industry more,” he commented.
Two plus one in real estate transactions
The specialist indicated that, for residential properties, a maximum of two months' rent plus one month's deposit in advance is established. However, for commercial premises, this point is left open to what the interested parties agree upon.
With this regulatory framework, which is only awaiting its official publication in the Judicial Gazette to come into effect, he valued that a significant contribution was made towards the tenant.
“There was already a lack of control. There were people who charged you four deposits plus one month's rent, three deposits plus one month's rent… There was no established rule, but rather the usual practice in the market,” he said.
Regarding progress, he specified that the law establishes who must pay the commission to the real estate agent, which is, in fact, the person who hired them. However, he clarified that the law does not set a commission percentage, leaving this aspect open.
On the other hand, he pointed out that the legal expenses of the contract and the notary legalization, which were previously paid by the tenant, will now correspond to both parties in a 50/50 proportion.
Increase in rental price
The real estate advisor assured that another contribution is the regulation of the increase in the price of rents, set at a maximum of 10%, without being able to exceed that figure, whether in Dominican pesos or in dollars.
However, he considered that a lower percentage should have been set for rents in dollars, taking into account the difference in inflation. In that sense, he estimated that 3% or 5% at most would have been appropriate.
Limitations of the law: short rents
The lawyer acknowledged that the law does not address the phenomenon of short-term rentals, which is constantly growing in the Dominican Republic. However, she believes that the framework developed “is much better than what we had before.”.
A message to real estate agents
In closing, Arlina Espaillat urged real estate agents to continue their training, staying informed, and developing their skills. She also emphasized the importance of creating solid contracts to protect both parties.
“Information is power. So, if I call myself an advisor, I must know as much as possible. And as I say, I am not obligated to know everything, but I am obligated to know where to get reliable information,” she explained.
During her speech, she revealed that rental contracts are not always handled by lawyers, as real estate agents use templates – whether downloaded from the internet or already available – to negotiate the agreement between the landlord and the tenant.
Given this scenario, he questioned the agents' level of understanding of each clause in the contract. While he wondered if they truly grasped every point outlined in the document, he made one thought clear in the face of this reality: "There is no legal certainty, nor any assurance regarding the parties' intent," he concluded.
