SANTO DOMINGO – November 21, 1958, was the date on which Law 5038 on Condominiums in the Dominican Republic. Almost 67 years have passed since then, making it a law that does not anticipate current situations within the real estate sector.
This was revealed by lawyer Israel López during an interview on the program “La Ventana de El Inmobiliario ” , where he acknowledged that this legal framework urgently needs reform.
The real estate law specialist argued that one of the most critical aspects of updating the law should be the search for practical and agile solutions to everyday conflicts between neighbors.
Beyond incorporating modern figures, he emphasized that it is not reasonable for a dispute over disturbing noises to require a court, lawyers and hearings, when it could be resolved from the condominium administration .
“It’s unacceptable that to resolve a situation like this, we have to take over a court, hire lawyers, wait for hearings, wait for deadlines, postponements, and judicial delays. In other words, it’s a process, I believe, that is very long and very bureaucratic to resolve a conflict that, perhaps, could be resolved in another, somewhat simpler way, through the administration,” he explained.
Another observation made by López was that this law, comprised of 44 chapters, lacks an introductory section and a preamble to provide context. Furthermore, he noted that it also does not include recitals.
Legal action against “delinquent landlords”
Israel López explained that the law establishes a "clear" procedure for collecting unpaid maintenance fees in a condominium. He detailed that, through a meeting, the apartment in arrears can be identified and the owner notified of the delay and the outstanding amount due.
“If they ignore that, then a privilege will be registered with the real estate jurisdiction, with the title registry, on that property in favor of the consortium of owners,” he pointed out.
The lawyer added that if the owner continues to fail to pay the debt despite notification, the homeowners' association is authorized to initiate a real estate foreclosure process . This procedure, carried out in the name of the condominium, can culminate in the public sale of the property in order to recover the amount owed.
When discussing service disconnections, the specialist was very clear in his explanation. He indicated that although it "can be done," it is something that "should not be done" because it is illegal.
“The issue of cutting off services shouldn't be… In fact, there's a ruling from the Constitutional Court stating that services shouldn't be cut off because they are fundamental rights: the right to water and the right to electricity. As soon as you cut off services, the enjoyment, use, and possession of the property is lost,” he explained.
Given this scenario, the lawyer commented that the legal alternative to resolve conflicts for non-payment —regarding services— involves initiating a “long, complex and costly” judicial process
“To find a solution to your problem, you have to go through a lengthy legal process because you have to hire lawyers and wait for deadlines. Meanwhile, you have to part with a significant amount of money to initiate the process, but you also have to wait for hearings and postponements. In other words, these are long processes. Legal proceedings are traumatic in the Dominican Republic,” he lamented.
How to deal with theft of funds in condominiums
Another topic discussed during the interview, conducted by Ana María Ramos, director of the El Inmobiliario , was the irregularity and embezzlement of funds within the administration of condominiums.
In cases of theft, the real estate law specialist explained that the first step is for the owners' association to convene a meeting or assembly to identify and document the irregularities.
Once a problem is detected, an accounting should be requested, detailing how the resources were managed. If the use of the funds is not justified, a complaint can be filed with the prosecutor 's office for investigation and to establish responsibility.
If the misappropriation of the money intended for maintenance is proven, the lawyer argued that the crime of "abuse of trust" , which allows for the initiation of a criminal complaint.
Maintenance cost: Is it enough?
Finally, López addressed the maintenance fees in the country. He initially stated that the current amounts “are very low .” However, he acknowledged that this could vary depending on the features and services offered.
In that regard, the expert explained that each condominium should consider, in addition to fixed expenses, at least an additional 20% allocated to the savings of the owners' association .
“The reality in the Dominican Republic is that condominiums have an economic deficit, and that is why we see many buildings that are very neglected on the outside,” he said.
The lawyer raised the need to adjust the maintenance fees, through an increase, in order to guarantee the good condition of the services and the preservation of the properties, both for rental and sale purposes.
Short-term rentals in the Dominican Republic
Despite the years that have passed since its enactment, the lawyer acknowledged that the Condominium Law regulates the issue of short-term rentals in the country, such as Airbnb.
He explained that, through assemblies convened by the consortium, the owners can establish regulations to decide whether or not to allow their condominium to operate with this type of rental.
In that regard, he clarified that explicitly incorporating the issue of short-term rents into the law would help resolve the ambiguity that exists in the regulatory framework.
According to the specialist, this would allow them to overcome the difficulties that many condominiums face in convening assemblies and updating their regulations, which is fundamental to regulating this business model that is currently booming.
“With Law 5038 of 1958, through the regulations and decisions made by the assembly in the condominiums, we can decide whether the condominium accepts or does not accept short-term rentals, but everything will depend on the purpose for which the real estate project was built,” he said.
To learn more about this interview, we invite you to watch the new episode of “La Ventana de El Inmobiliario ” on our YouTube channel.
