SANTO DOMINGO.- According to the draft general law on real estate rentals and evictions, approved yesterday Wednesday in its first reading by the Chamber of Deputies, owners and tenants may agree to contract an insurance policy against risks that covers a possible non-payment and the generation of damage to the property.
“The parties may agree to take out an insurance policy against the risk of non-payment and for repair of damage caused to the property,” says paragraph one, chapter two.
The bill was authored by the Speaker of the House of Representatives, Alfredo Pacheco, and was reintroduced to the Lower House on August 19, 2024, after expiring in the previous legislature, and was approved yesterday, June 25, 2025, in the House of Representatives.
The bill will have to be reviewed again in the House of Representatives and subsequently in the Senate. Pacheco, its proponent, reported that the public will be invited to public hearings in the coming days to reach a consensus.
The proposal aims to establish legal conditions and obligations arising from the rental of real estate intended for housing, commerce or any other lawful activity.
According to the document, the contracting parties may also agree to enter into a real estate lease or rental agreement with the reservation of acquisition or option to purchase the property granted in usufruct, both for housing and for any other lawful purpose.
Payment of commission and legal expenses
The legislation proposes that the brokerage commission payment be applied to the person who hires the broker.
Regarding legal expenses, the project states: “Legal expenses arising from a rental or lease agreement will be covered equally by the landlord and the tenant.”.
Price adjustment
The adjustment of the housing price will be subject to the agreement between the parties and may not exceed (10%) of the rent value at the renewal of the contract.
“If the parties do not establish the price adjustment amount in the contract, the updated rate reported by the Central Bank will be used as a reference for indexation purposes.
This legislative framework would repeal several laws that date back many years and have not been updated to integrate the new reality of the Dominican market in terms of rental income.
