SANTO DOMINGO.- Juan Chalas, general manager of Plusval Dominicana, proposed yesterday that the master broker have a chapter in the proposed law to regulate real estate intermediation in the country, which is currently being studied by the Special Commission of the Chamber of Deputies.
Alternatively, the real estate agent suggested that the Association of Real Estate Agents and Companies (AEI) develop a protocol that standardizes the processes of this role and that if there is any malpractice by any of them, it can fall within a scheme of predefined parameters.
The executive argued that there should be a body superior to real estate companies to legislate and create regulations to establish guidelines on how to operate, since it is an interesting model that has more advantages than disadvantages.
“There needs to be specific regulations. It is necessary to define and include a section for master brokers in the bill, given the importance of this role. We know that it has been part of the sector's growth in recent years because most projects are being managed under this model,” said one of the founders of Plusval.
Juan Chalas. (External source),
In his opinion, it is important to be clear about the responsibilities of the model, the guidelines it must comply with, the best practices, its scope, and what must be done regarding the protocol for assuming the role of master broker for a project.
Juan Chalas opined that the scope and responsibilities of the sub-broker must also be established, who must also define and do things to guarantee a good relationship with that master broker and give transparency and peace of mind to the end user who is buying either directly or through the sub-broker who is carrying out the management.
“I understand that all of that must be in the law, and that is what will give us a much clearer starting point, where we will all be able to work in a better way and where there will be a system of consequences in case the parameters stipulated by the law are not met,” he emphasized.
He stated that the role of the master broker, which was created to resolve the commercial aspect and enable all collaborators to work in a more organized manner, undoubtedly has much room for improvement.
“We are talking about a figure that each of the companies that has several master brokers has its own particular book and although there are things that are similar each one handles it in different ways,” he assured.
He believes that some of the problems that arise are often not the fault of the master broker, but rather due to a lack of communication in the processes. "First, because the process needs to be clearly defined from the outset, with the master broker's rules sent to all those involved, outlining their scope and how payment management will be handled," he asserted.
“In the specific case of commissions, it often happens that there is a process of linking with the trust and a point of equilibrium that must be waited for, and until that point is reached, the commissions cannot begin to be paid. If there is no understanding of the situation, and all the collaborators are not clearly told at what point they will start collecting the commissions, then they will understand that there is a delay in the commissions on the part of the master broker and that he is withholding them for his personal use or to do business,” he explained.
He added that in the case of Plusval that is not the case and that every time a sub-broker commission comes in, they are called and the whole procedure is carried out so that the commission payment can be generated.
He insisted that this communication process needs to take place, where the rules are clearly established, "which is something that is needed because sometimes it involves real estate agents who are newly entered into the profession, therefore it must be explained to them well.".
He added that many sub-brokers, due to a lack of knowledge, make the processes more tedious and start charging late, putting pressure on the master brokers.
Chalas stated that both the master broker and the sub-broker are obligated parties and therefore have the responsibility to verify the documentation of the real estate project being referenced. “They have to verify the documentation and ensure that everything is correct because we cannot delegate this responsibility. The master broker must do so more thoroughly and exhaustively, but the sub-broker is also an independent obligated party and has the responsibility to request and demand the documents that demonstrate clear due diligence, showing that everything is in order regarding title, commercial registration, the trust agreement, tax payments, among other things,” he emphasized.
