The withdrawal of clients after months of work and the refusal of construction companies to recognize the work of the agent generates a problem that finds protection in Law 3143 on work performed and not paid.
By Reyna Echenique
Special for El Inmobiliario
The Dominican real estate market faces a critical challenge in the practice of disregarding the professional work of the agent when a client withdraws from a purchase, especially in off-plan projects, generating a situation that goes beyond a simple commercial setback to become a violation of legally established rights.
Unrecognized investment and work
In a buyer's market like the Dominican Republic, acquiring clients requires a significant investment. The agent invests in advertising, fuel, vehicle wear and tear, lunches, time spent on multiple visits, proposal preparation, and follow-up that can extend for months, representing not only time but also substantial financial resources.
The questionable double profit
When a client backs out of purchasing a unit in a real estate development, a peculiar situation arises: the construction company charges the client a penalty for the withdrawal and, furthermore, relists the unit, often at a higher price. However, paradoxically, it refuses to acknowledge the work of the real estate agent who initially generated the deal, claiming that the buyer " backed out of the purchase."
Existing legal protection
Law 3143 on unpaid work establishes criminal penalties for those who benefit from professional services without due compensation. This legal framework, complemented by Article 401 of the Dominican Penal Code, protects real estate agents whose documented work generates profits for the construction company.
Proposed solutions
Professionalization of the sector demands:
● Comprehensive documentation of each stage of the sales process
● Real estate brokerage contracts that include withdrawal scenarios
● Specific clauses on compensation when the work generates profits
● Recognition of the right to payment of the commission independent of the final decision of the client
The current state of the Dominican real estate market demands more equitable practices. Construction companies that disregard the professional work of real estate agents not only engage in questionable practices but could also face legal consequences under Law 3143. Recognizing the work performed, regardless of the final outcome, is fundamental to the professionalization of the sector.
The author is a lawyer, real estate entrepreneur, CEO of Echenique Group, Secretary of the board of directors of the AEI and a specialized advisor in the Dominican real estate sector.
