SANTO DOMINGO.- The rental agreement should be tailored to each specific property and should take into account all the details and clauses agreed upon between the owner and tenant, in order to protect both the client and the work of the real estate broker, says lawyer Elizabeth Silver.
Speaking last night at the Real Estate Certification (CBR02), organized by the AEI, Association of Real Estate Agents and Companies, the expert advised ensuring that the document is drafted by a legal professional to avoid unforeseen problems, because in the event of any legal claim, the judge always adheres to what the contract states.
Silver urged real estate agents to be careful in drafting the legal instrument so that they can protect their client and their work.
He made the remarks while speaking on the topic "What a CBR should know about rentals in the Dominican Republic, from the business perspective to the legal aspect.".
The lawyer discussed important clauses that must be addressed in a rental agreement. For example, the clause regarding subletting the property, a topic she suggests explicitly stating in the document, because "what is not prohibited is permitted.".
He called on real estate brokers to be cautious when investigating their clients and to request their prior consent, explaining that all the data of those involved must be included in the legal document so that they can be contacted in any eventuality, suggesting ensuring the quality of the parties.
"To avoid problems, for example, it is important to have a power of attorney to promote the rental or manage the property, and in the case of both, there is also a power of attorney and it must be used to perform that function.".
On this last point, he elaborated, explaining that the clause should be broad, taking into account those owners who, a few months after transferring the property, appear wanting to take over its administration. In such cases, he advises including a provision where the owner pays all the expenses that the professional in charge of the property may have incurred.
One important condition to consider is the one that authorizes the owner to inspect their property annually to assess its condition. For furnished rentals, this inspection should be required every six months. In both cases, it is recommended to create an inventory of all items and document the condition of the property upon delivery, including dated videos and photos.
Regarding the responsibility of the joint guarantor, he explained that it is more appropriate to include this figure and not an ordinary guarantor, because the former is attributed the same responsibilities in the contract as the tenant and can be subject to seizure in case of non-compliance.
Silver reminded everyone that the contract must be notarized, and asked agents never to hand over the keys without making sure that all signatures are properly registered on the document.
Regarding the annual rent increases many landlords anticipate, he clarifies that no Dominican legal framework establishes specific percentages for this. Therefore, he suggests that each landlord assess the situation individually, taking into account the type of tenant they have.
About the companies
He explains that when applying for rentals, applicants should also be vetted, and their business registration should be requested because sometimes there are shell companies. If the company is newly established, a bank statement should be requested to verify its guarantee, along with a copy of the duly registered minutes of the assembly. “Never allow a client to act as both tenant and guarantor at the same time.”.
