Article 25 grants the Ministry of Industry and Commerce the power to revoke licenses. "I think that to some extent we're stuck in a middle ground between what should be a real estate brokers' association, where that association is the one that sanctions and has the power to issue and revoke licenses, and handing that power over to a state body. I don't think that's right," the executive commented.
SANTO DOMINGO. Melchor Alcántara, general coordinator of the National Construction Observatory (ONIC), believes that the Ministry of Housing, Habitat and Buildings (MIVHED) should be in charge of handling matters related to a law for real estate agents, and not the Ministry of Industry and Commerce, as proposed in the bill currently before the National Congress.
In her opinion, the Ministry of Housing, Urban Development and Housing (MIVHED) is a ministry more aligned with the purpose of a real estate agent law. The legislation, which would regulate real estate services and brokerage contracts in the country, was authored by Representative Lourdes Aybar de Serulle, from the National District.
Alcántara believes that requiring a broker to be up-to-date with their taxes to the General Directorate of Internal Taxes (DGII) in order to operate actively "is a bit harsh and unnecessary and would represent a setback for the sector, since the tax authority frequently generates outstanding figures, even if the taxpayer pays on time," the representative of the agency stated, when consulted by the digital newspaper El Inmobiliario about the piece of legislation.
“What’s the point of an insurance policy? What risk is involved in a real estate transaction? I don’t see the need for it; it just adds cost to the brokerage business,” the lawyer and finance specialist pointed out
The ONIC coordinator finds the proposal in the bill that requires the manager of a real estate company to be a broker to be limiting. “I see it as archaic. Nowadays, a company can have owners from different professional backgrounds. Of course, knowledge can contribute to success, but it shouldn't be a requirement. It's quite limiting. For example, if a franchise wants to sell, the buyer must be a broker.”.
Note that the issuance of the license should not cost more than five thousand pesos and not two minimum wages as the project presents.
Article 25 grants the Ministry of Industry and Commerce the power to revoke licenses. "I think that to some extent we're stuck in a middle ground between what should be a real estate brokers' association, where that association is the one that sanctions and has the power to issue and revoke licenses, and handing that power over to a state body. I don't think that's right," the executive commented.
Alcántara proposes clarifying article 26 which deals with the pricing modality, "under a scheme of monitored freedom which I do not understand because the prices of the commissions are established by agreements between the parties, that concept should be better clarified.".
Regarding article 55, it also establishes what constitutes abusive termination, which will allow the broker to still collect the commission, but it does not define in which cases a termination is abusive, "that must be defined," he argues.
"The scope of article 61 should be defined insofar as it relates to the power to sue for damages for businesses that fall through due to the fault of the proposer, what those cases are, it could generate arbitrariness if it is not specified in what points and proposer can incur in will or fault because a business falls through.".
About ONIC
The National Observatory of the Construction Industry (ONIC) is an organization comprised of a group of professionals related to the construction sector, including engineers, businesspeople, architects, professors, economists, and other professionals. It was created to evaluate, analyze, discuss, and propose initiatives on issues related to the sector. It has been established for one year.
