By Reyna Echenique
Special for El Inmobiliario
In the ever-evolving real estate sector, one element remains constant: the importance of legal certainty. While methods and technologies change, the need to thoroughly verify the legal aspects of each property remains essential. Although much has been said about the topic, it doesn't always receive the attention it deserves. As professionals striving for excellence, let us always remember this principle, one that has proven its worth: " Legal certainty is the master key to real estate success ."
Real vs. apparent opportunities
When we hear phrases like "it's a unique investment opportunity" or "at this price it won't last long on the market," it's worth reflecting on what really constitutes an opportunity in the real estate sector and asking ourselves, "For whom is the opportunity?"
A true real estate opportunity isn't defined solely by an attractive price, but by the balance between economic value and legal security. The best transactions are win-win situations: the buyer acquires a property without future legal surprises, the seller transfers ownership transparently, and the real estate professional builds a lasting reputation for trust.
Essential elements of a complete verification
The process of legally verifying real estate is a fundamental skill that every professional in the sector can refine. Among the basic elements that should be verified is the actual ownership, by requesting an updated certificate from the Registry of Titles that confirms who the legitimate owner is, the validity of their right, and its origin. Equally important is reviewing the legal capacity and standing of the seller, as established by Law 108-05 and our Civil Code, verifying their ability to transfer rights.
A thorough review of liens and encumbrances is essential to identify mortgages, liens, attachments, and any other legal issues affecting the property. It is also vital to verify the property's tax status, confirming payment of the Property Tax (IPI) and other associated tax obligations, as well as any outstanding legal matters.
The cadastral situation requires special attention to confirm boundaries and parcel updates, an aspect particularly relevant after the modifications to Law 108-05. Finally, urban planning compliance must be validated by verifying building permits, occupancy certificates, and compliance with land use regulations.
Although it may sound like a broken record, it's time to realize: thorough legal verification is not a luxury but an imperative necessity for any real estate professional who aspires to offer a truly high-quality service.
Challenges in daily practice
The challenges of today's market can make it difficult to implement thorough verification processes. We face competitive markets where properties move quickly, clients eager to close deals in short timeframes driven by "the opportunity," and limited access to information. However, these circumstances present opportunities for real estate professionals to excel through process excellence.
Legal verification as a competitive advantage
Professionals who integrate this approach into their daily practice are able to position themselves in premium segments where legal certainty is particularly valued. Europeans, North Americans, and the rest of Latin America and South America are accustomed to high standards of legal security in their home countries and expect the same level of legal diligence in our real estate market. Properly addressing these expectations allows for building a loyal client base that appreciates the peace of mind that comes with a thorough process, developing a reputation for excellence that generates quality referrals, and significantly reducing exposure to subsequent claims and litigation.
Implementing best practices
Strengthening legal verification processes can be implemented gradually. It begins with developing systematic protocols to guide the process consistently. Ongoing training to stay current on relevant legal matters is essential. Strategic alliances with specialized lawyers effectively complement business operations, while the use of technology significantly facilitates document verification.
Thorough and accurate legal due diligence is a cornerstone of professional real estate practice. In an increasingly sophisticated market, professionals who incorporate these practices not only protect their clients and themselves but also contribute to the evolution of the Dominican real estate sector toward ever-higher standards.
Legal certainty is, without a doubt, the master key to real estate success.
This article is part of the series 'Good Real Estate Practices in the Dominican Republic'.
The author is a real estate lawyer, real estate entrepreneur CEO Echenique Group, Coach, trainer and speaker certified by John Maxwell and Tania Báez, Secretary of the Board of Directors AEI 2024-2026, realtor specializing in the Dominican and international real estate sector.
