In the Dominican real estate market, the role of the agent goes far beyond
connecting buyers with properties.
By Reyna Echenique
Special for El Inmobiliario
Legal responsibilities
The modern real estate agent is not simply an intermediary. Their role as an advisor entails specific legal obligations to their clients and requires them to remain involved when situations and conflicts arise between seller and buyer. This responsibility begins with verifying property documentation and extends to advising on potential legal contingencies. This role demands in-depth knowledge not only of the market but also of the legal framework governing real estate transactions.
The scope of the advice
Professional real estate consulting involves:
● Verification of the legal status of the property
● Identification of potential risks in the transaction
● Advice on basic tax matters
● Guidance on financing processes
● Adequate documentation of each stage of the process
The risks of malpractice
The consequences of inadequate advice can be serious, both for the client and the agent. Omitting or concealing relevant information, providing incorrect advice on legal or tax matters, or failing to properly verify documentation can result in:
● Civil liability for damages
● Criminal liability for deliberately concealing important information that could affect the client's decision
● Loss of professional reputation
● Protracted legal disputes
● Significant economic losses for the client
Guarantees and transparency
The duty of transparency of real estate agents is supported by Article 1625 of the Dominican Civil Code. This obligation implies:
● Make all documentation transparent without withholding "sensitive" information
● Guarantee the registered ownership of the owner
● In projects based on plans, verify and submit the documentation of the land where construction will take place
● For Master Brokers, extend these guarantees in their relationship with Sub Brokers
● Document the delivery and explanation of all relevant information
The importance of due diligence
Due diligence is fundamental in every transaction. The agent must:
● Verify the actual ownership of the property
● Check for the existence of liens or encumbrances
● Confirm the status of taxes and services
● Review technical documentation and permits
● Identify potential urban planning or zoning problems
Best practices for legal protection
To practice the profession safely, the agent must:
● Maintain detailed documentation of all transactions
● Use clear contracts that define the scope of your services
● Have professional liability insurance
● Maintain ongoing training in legal matters
● Network with specialized professionals such as lawyers, tax advisors, surveyors, appraisers, when necessary
Future outlook
The professionalization of the real estate sector demands agents who are increasingly well-prepared in legal and technical matters. This evolution, far from being a burden, represents an opportunity for:
● Differentiate yourself in the market
● Offer a higher value service
● Build long-term relationships with customers
● Raise the standards of the profession
The legal responsibility of a real estate agent, when handled professionally, becomes a tool for building trust and value for clients. It's not just about fulfilling obligations, but about building a solid and respected professional practice.
This article is part of the series “Hidden Challenges of the Real Estate Sector” for El Inmobiliario, and concludes this series of analyses on the less visible but important aspects of the real estate profession.
The author Reyna Echenique is a real estate lawyer, real estate entrepreneur, CEO of Echenique Group, Secretary of the AEI board of directors 2024-2026, and a realtor specializing in the Dominican and international real estate sector.
