SANTO DOMINGO. - regional director of RE/MAX Dominican Republic , pointed out that the country's real estate sector continues to operate under a high level of informality, as a result of the lack of regulation in various aspects of the market.
During a conversation on the weekly program "La Ventana de El Inmobiliario " he highlighted that informal entry into this sector, without the existence of an accreditation system, constitutes one of the most visible elements.
“I am a real estate agent just by saying it… Because the barrier to entry is so low, there is no license, no bonds for errors and omissions, no training properly established and required by law,” he said.
The real estate expert, who has 36 years of experience in this profession, stressed the need for a real estate brokerage law that would regulate, structure, and promote the development of agents nationwide.
“I want to be positive and optimistic. I hope the fifth time’s the charm. It was approved twice in the Senate, but expired in the Chamber of Deputies, and it was approved once in the Chamber of Deputies and expired,” he commented, referring to the process the bill to regulate the sector in the Dominican Republic has gone through.
Mélido stated that, on this occasion, the law could have been reinstated – for the fifth time – as a result of the real estate fraud cases that have come to light in the country.
“The recent high-profile real estate scams are probably helping to raise awareness among legislators,” revealed the veteran real estate advisor, general manager of RE/MAX Metropolitana.
When questioned about the reasons why this law is not yet in place, Marte identified two main factors that could have hindered its approval and implementation.
First, he explained that it is a "highly fragmented sector ," arguing that there are no large structures with the necessary financial backing to promote the bill.
“Because it is so fragmented, there are no large structures with large amounts of capital that can promote a law, and there is always a particular interest and benefit behind every law,” he noted.
Secondly, he revealed that for certain sectors, the organization of the agents could represent "a threat to their respective interests" .
Should the project be approved and come into effect, he considered that mandatory and continuous training should be one of the fundamental pillars to be regulated.
He also stressed the importance of establishing comprehensive regulatory mechanisms for all aspects of the business, including the implementation of an errors and omissions bond .
“A real estate agent’s malpractice can affect both the owner and the buyer. Therefore, there must be consequences in that order,” he said, referring to the need for a system of accountability.
Finally, he pointed out that effective pathways and structures must be established for the "correct application and monitoring of Law 155-17" on money laundering and the financing of terrorism.
For more details about this interview, visit the YouTube channel: La Ventana de El Inmobiliario .
