SANTO DOMINGO.-If the draft bill regulating real estate brokerage in the Dominican Republic is approved, the actors involved in the national market could freely determine the commission amounts they would charge clients for their services.
This is stipulated in article 33, chapter 3, under the title commissions and economic consideration, of the proposal currently being reviewed by the Justice Committee of the Chamber of Deputies and whose process is well advanced, according to Alberto Bogaert, president of the Association of Real Estate Agents and Companies (AEI), the entity that leads the proposal.
Although the Dominican market lacks regulation, the commission that real estate agents typically charge for property sales ranges from 3% to 5%, with 5% being the most common rate. Market growth, with new players and an increase in real estate developments, has led to commissions sometimes reaching as high as 7%.
The aforementioned article, of the legislative piece, establishes that the amounts of commissions for the sale of real estate must be stated in the contracts or written documentation of services signed with the clients.
“Real estate market participants will freely determine the commission amounts they will charge their clients for their services. These commissions must be stated in the contracts or written service agreements signed with their clients,” states the latest document filed with the Chamber of Deputies, dated July 11, a copy of which is in the possession El Inmobiliario.
Regarding criminal offenses, Article 53 states that the actions considered criminal, as set forth in the Law, fall under the jurisdiction of the criminal courts of the Dominican Republic, in accordance with the provisions of current procedural regulations.
“Its exercise is independent of any administrative actions that may be carried out, and as such, one decision does not influence another,” he points out.
It adds that the Public Prosecutor's Office will have the broadest powers to request information, investigate and prosecute economic and financial crimes against the real estate market as provided for in this law.
Route
After more than 30 years of ups and downs and proposals, the sectors that influence the country's real estate market have once again submitted an initiative to the Chamber of Deputies, implemented in collaboration with the firm López Grullón Abogados & Consultores, seeking to provide the nation with an instrument to regulate the practice of real estate.
Article 6 of the bill proposes that the Dominican real estate market would be regulated and supervised by the Ministry of Housing, Habitat, and Buildings (MIVHED). It proposes the creation of the General Directorate of Real Estate Intermediation, an entity attached to MIVHED, which would be primarily responsible for the execution, compliance, and control of the functions assigned by the governing body and its supplementary regulations, including the imposition of the sanctions stipulated by law.
A comprehensive proposal
Deputy Alexis Jiménez, president of the Permanent Justice Commission of the Chamber of Deputies, assured on July 3 that they would soon present a report on the draft bill to regulate real estate agents in the country.
“We are working on a modern, comprehensive proposal that will regulate real estate brokerage in the Dominican Republic,” Jiménez told El Inmobiliario.
Alberto Bogaert, president of the AEI, said that the President of the Republic, Luis Abinader, has expressed his interest and instructed the Ministry of Housing to resolve the issue of real estate agents.
“We are working to ensure that the staff in this sector have state endorsement. We have met with various important entities involved in this matter, as there is interest,” he explained.
