SANTO DOMINGO – The draft law on real estate rentals and evictions, currently being studied by a special committee of the Chamber of Deputies, would create a specialized jurisdiction that would allow for the eviction of delinquent tenants within a period of no more than 60 days, with regulations that designate a justice of the peace and a special inspector for rental operations, lawyer Luz del Alba Rodríguez highlighted this weekend.
“will be created that will allow evictions of tenants who do not pay to be carried out within a maximum period of two months, and the regulations will designate a justice of the peace and a special inspector who will be exclusive to matters of tenancy,” highlighted the specialist in civil and civil procedural law, during her presentation at Master Real Estate Agent, held last Saturday.
He emphasized that the legislation submitted last year by the Speaker of the House of Representatives, Alfredo Pacheco, eliminates the "famous three deposits," which, although not stipulated by law, had become standard practice in rental transactions in the Dominican Republic. The new bill requires only one deposit.
Another aspect that Rodríguez pointed out as new in the document is that a rental price is assigned by the parties, not by the market, while legal expenses will be shared by the owner and tenant.
"The aim is to guarantee the rights and duties of the owner as well as the tenant, repealing old practices; such as the additional deposit for payment to intermediaries or brokers at the time of renting a property, and establishes; 'when a real estate commission must be paid for management of the rental, the responsibility for its settlement will correspond to the owner or legal representative provided that he has contracted the management of the brokerage,' the document states.
According to his explanation, the draft Rental Law is a step forward for real estate agents, since, if approved, the State would recognize the real estate transaction, which, in his opinion, is the result of the sector's effort and work.
During the training session, the expert highlighted the reasons why a real estate agent must have knowledge of legal aspects: identifying properties that are opportunities and easy to sell due to their legal status, as well as handling doubts and weaknesses of the property in relation to the required documentation.
Rodríguez shared with the more than 80 participants details of due diligence and the aspects that should be reviewed in that regard by real estate agents during the transaction process.
“Title history, where you must confirm that the seller of the property has full right to carry out the transaction. Review its liens or encumbrances to know the current legal status of the property and verify if it has mortgages, easements or other types of restrictions.”.
Use and possession were mentioned as another element to take into account, as well as zoning and regulations to determine that there are no restrictions that limit its previous use, and to obtain the market value of the property through an appraisal by a professional in the field.
The legal professional also cited the verification of the absence of tax burden and verifying that the property is located within the references and coordinates of the title and that the described area corresponds.
Know the contract
In the Master Real Estate Agent Luz del Alba Rodríguez detailed the types of contracts involved in a real estate transaction process, highlighting that the purchase and sale contract is the only one found in the Dominican civil code, while the separation contract does not appear in any document.
“The separation agreement doesn’t involve a sale; it’s unclear where to start and there’s no jurisprudence to support it as a contract. The other two allow you to deposit it in the registry and block the property,” he explained.
The details regarding what a contract should contain, such as its object, method of payment, delivery time of the property, exact description of the property to be delivered, termination clauses and increase in the price of materials, were explained during the presentation by the specialist, who was in charge of inaugurating the training day.
"If this last point is not stipulated in the contract, the construction company cannot increase the property value; these are things that agents must know to safeguard their client's rights.".
Rental agreement
Five basic things that cannot be missing from a rental contract, according to Rodríguez: examine the property to make sure it is in perfect condition.
Verify the tenant's credit history and ability to pay. Clarify the rental price and lease term, determine the property's intended use (if commercial), and understand the grounds for eviction.
Regarding real estate scams, Rodríguez explained that the penal code stipulates them and that upon receiving a commission, the real estate agent becomes part of the process and the investigation. “Because my responsibility as a real estate agent is to verify everything I'm going to sell, you, as an agent, can sue the construction company, and that's called civil or criminal liability that an agent can have in the Dominican Republic.”.
