SANTO DOMINGO.- The bill regulating real estate brokerage and deceptive advertising in the Dominican Republic, approved in its first reading on April 23, raises one of the most sensitive questions in the sector: who will actually be able to act as intermediaries and who will not?
The new proposal approved this week in its second reading in the Senate of the Republic draws a direct line: Article 19 states that the provision or offering of legal, financial or valuation services provided by
professionals related to the implementation and advice in the drafting and negotiation of
acts of purchase and sale, donation, exchange or any acts transferring ownership
of real estate or its use and enjoyment will not be considered real estate intermediation.
"Natural persons who hold the status of law graduates or commercial companies intended to offer legal services, when carrying out the activities described in article 18, will need authorization as a real estate agent or real estate agency, as appropriate, observing the provisions of article 3," the document states.
Article 3 refers to the exclusion of application, leaving out of the scope of the law the sales and marketing of real estate owned, carried out directly
by the owner of said real estate; the representation and legal advice provided for the acquisition and transfer of real estate carried out by professionals in the exercise of their profession.
Likewise, sales and real estate transactions carried out by legal representatives who
hold the representation.
Prohibitions on real estate intermediaries
Article 22 states that real estate intermediaries may not:
- Performing activities outside of those authorized by law.
- Executing operations without verifying the ownership of the property through certification from the Registry of Titles.
- To allocate client funds or assets to purposes other than those agreed upon.
- Guarantee returns or assume losses on behalf of clients.
- Acquiring real estate without the express authorization of the client.
- Simulating offers to artificially alter prices.
- Prioritizing one's own or related interests over offers from clients.
- Charging commissions not previously agreed upon in writing.
- Recommending risky transactions without warning or suggesting legal assistance.
- Associating agents not authorized by the competent authority.
"In cases where the property rights of the real estate are not established in a title certificate in the name of the person claiming to hold that right, or the property has not been demarcated, the real estate agent or real estate agency must inform their client in writing and ensure that the signing parties are represented by a professional, preferably a lawyer, to finalize the transaction," the document states.
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