SANTO DOMINGO - Legal professionals who provide advice during the process of buying and selling properties will not need authorization to practice their profession, according to the draft bill that seeks to regulate the real estate profession in the Dominican Republic.
“The provision or offering of legal services provided by law graduates relating to the instrumentation and advice in the drafting and negotiation of acts transferring ownership of real estate or its use and enjoyment will not be considered Real Estate Intermediation, consequently they will not need to obtain the legal authorization established in this Law to provide said service,” says article 18, paragraph II of the legislative piece.
It establishes that, on the other hand, natural persons who hold the status of a law graduate or commercial companies intended to offer legal services will need authorization as a Real Estate Agent, as appropriate, when they are habitually engaged in the activities described in article 18 of this Law.
The article defines the concept as follows: “Real Estate Intermediation is considered to be the habitual performance of any of the following activities with respect to real estate, which will be the exclusive competence of Real Estate Intermediaries:
1. The promotion, advertising and marketing of real estate so that transfers of ownership can be carried out with respect to these properties (purchase, sale and any other type of transaction whose purpose involves transferring ownership of one or more properties).
2. The promotion, advertising and marketing of real estate transactions that involve the enjoyment and use of properties located in the Dominican Republic (leases).
3. Intermediation, negotiation or participation in the real estate transactions described in the aforementioned sections, on behalf of their clients as a commission agent, representative or in any other capacity, intervening in the corresponding legal acts on behalf of their clients, and
4. Carrying out operations and acts aimed at bringing together the supply and demand of real estate in the Dominican Republic with respect to the activities described in numerals 1 and 2 of this article.
The proposal states that Real Estate Intermediaries must have the words "Real Estate Agency" or "Real Estate Agent" added before or after their name, as appropriate, a term reserved for those who hold the legal authorization established in this Law.
Article 19 classifies the types of Real Estate Intermediaries, which may be exercised by Agents, Agencies, Promoters and Real Estate Developers authorized by this Law.
“For these purposes, the Ministry of Housing, Habitat and Buildings (MIVHED) may issue the following operating permits for: a) Real Estate Agencies; b) Real Estate Agents.”.
In the case of Real Estate Agents, they must be affiliated or associated with a Real Estate Agency when they carry out the activities described in Article 18 of this Law, while Real Estate Developers must obtain a Real Estate Agency operating license when they promote and market their properties directly to the general public.
“Real Estate Intermediaries must have a civil liability insurance policy, in the form and scope required by regulation, in order to guarantee the rights of users in case of suffering damages or losses attributable to them,” the document states.
