“If these regulations are designed without listening to the sector, they can end up being rigid or confusing, generating more friction than solutions,” warns Mélido Marte
SANTO DOMINGO.- The bill regulating real estate brokerage and deceptive advertising in the Dominican Republic, approved in its first reading on April 23, has support within the real estate sector, but also clear warnings about the challenges it will face in its implementation.
Former presidents of the Association of Real Estate Agencies and Companies (AEI), Melido Marte and Claudia Castillo, agreed that the initiative responds to an urgent need for market regulation.
“I understand that this bill has a high probability of being approved. There is real pressure to regulate the real estate sector, both because of the growing informality and the cases of deceptive advertising,” Marte explained.
For her part, Claudia Castillo, Senior Advisor at Plusval Dominicana, stated that it has been a project developed through broad consensus with all stakeholders in the sector. "It has taken years of effort to regulate such an important and dynamic sector," she explained.
The real estate agent pointed out that the current context, marked by a boom in investments in development projects, has highlighted weaknesses in existing regulations. "Regulation is essential to prevent bad practices from flourishing," she stated.
A necessary but not sufficient law
Mélido Marte, regional director of RE/MAX Dominican Republic, cautioned that the law's approval does not guarantee its effectiveness. "The law, in essence, is a step in the right direction, but its true impact will depend on the quality of its regulations and the enforcement capacity of the regulatory body," he stated.
In that regard, he warned about the risk of designing rules disconnected from market reality.
“If these regulations are designed without listening to the sector, they may end up being rigid or confusing, generating more friction than solutions,” he warned.
He stressed that the law's success will depend on achieving a balance in oversight. "If oversight is weak, the law becomes symbolic; but if it is excessive or poorly enforced, it can incentivize informality," he explained.
He also highlighted the importance of coordination with institutions such as Pro Consumidor and other actors in the system.
Order, professionalization and sanctions
From Claudia Castillo's perspective, the regulations will help organize the sector and raise the standards of those who operate within it. "This instrument will be very effective; there will be sanctions and consequences, which greatly minimizes the problems," she stated.
He indicated that the law will also promote the professionalization of the real estate sector by requiring licenses and ethical behavior for those who wish to enter the market.
He agrees with Marte that the law must have implementing regulations, since it will grant a license to operate and must guarantee compliance with the rules, effectiveness, consequences, equality, and transparency in its operation. "It is essential that it has regulations, and that has been the proposal of our AEI," he stated.
When consulted by El Inmobiliario, both agreed that the initiative can strengthen confidence in the Dominican real estate sector, provided it is executed with sound criteria.
“The challenge is not to approve it, but to apply it intelligently,” Marte concluded.
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