SANTO DOMINGO.- Real estate law specialist Ana Bello believes it would be important to include the figure of the referendum in a law regulating the sector because it would make transactions more transparent.
Regarding the case recently published in El Inmobiliario, where a real estate agency revealed that it was sentenced by a court in a referral case, the professional pointed out that the policies regarding the commissions granted to these and the agreement between the parties and the policies defined by each real estate company should always be made clear.
He added that it is important that the legislation regulating the sector be clear and precise, so as not to leave room for interpretations of contracts that could be unfair, excessive and outside the regular practice of the sector.
“Especially since, in the case of the species, the principles of equity and reasonableness are violated, given that the commission granted goes even beyond what the agency had available to share,” Bello commented when consulted by this media outlet about the case.
He stated that previously agreed-upon commission payments will always be subject to legal challenge. "We must evaluate the criteria considered by the court and the evidence presented to it that led to its ruling in this case," he declared.
Ana Bello, specialist in real estate law. (External source)
He explained that this was because, as it is an unregulated sector, the court probably weighed the evidence presented and interpreted the agreement between the parties accordingly.
Real estate advisor Pamela Núñez, of Canablue Real Estate, Punta Cana, explained last week in an article published in this media, the situation in which said company was involved due to a referral issue, where a court ruled against the real estate firm.
What is a referral?
Lawyer Ana Bello defines it as the person, whether natural or legal, who directs a potential buyer or seller of real estate to a real estate agent or brokerage firm, in exchange for a previously agreed commission or fee.
The specialist explained that agents typically pay between 10-20% of their net commission, although this varies depending on the agent or real estate agency because it is not regulated.
In the current proposed law to regulate real estate intermediation in the Dominican Republic, the actors involved in the national market could freely determine the amounts of the commissions they would charge for their services to clients, as established in article 33 of the draft bill, in none of the cases does the figure of the referred party appear.
The case
For Pamela Núñez, Broker Owner of Canablue Real Estate, Punta Cana, the verdict where the courts ruled in favor of the referring company, forcing that company to pay 10% of the total sale, highlighted the lack of understanding of the specific terms of the real estate business by the judicial system and the absence of clear regulation that protects agencies in situations like that.
“The law currently supports agreements between the parties, and since our contract contained a formal error, the ruling favored the referring agent. However, implementing specific regulations for the real estate sector could not only provide clear guidance for the courts but also prevent similar misunderstandings in the future, protecting both agents and their referring agents and clients,” the advisor stated.
He noted the sector's concern "regarding the lack of clear legal protection in our field. Effective regulation will not only strengthen agencies but also foster greater transparency and trust in the Dominican real estate market. It is time for the real estate sector in the Dominican Republic to be supported by regulation that guarantees fairness, clarity, and justice for all its participants," he concluded.
