By Massiel Martínez
Special for El Inmobiliario
Civil liability is defined as the legal obligation to repair damage caused to another, and discussing it leads us into the realm of contract and extra-contractual law. On the other hand, the civil liability of real estate agents is an important issue in the performance of their duties, yet it is rarely discussed within the sector.
Real estate advisors play a key role in real estate transactions, acting as intermediaries between buyers and sellers, which imposes specific obligations on us. The lack of specific regulation on the activity generates uncertainty, so it is key to analyze the applicable regulations and jurisprudence.
1. Foundations of civil liability
In Dominican legislation, this is divided into two categories: contractual liability and extra-contractual liability .
- Contractual : This arises when a real estate agent breaches a contract previously agreed upon with their client. Article 1134 of the Dominican Civil Code establishes that "Legally formed agreements have the force of law for those who have entered into them" and must be executed in good faith. Furthermore, Article 1147 indicates that a debtor will only be exempt from liability if they prove that the breach was caused by a factor beyond their control.
- Extracontractual liability : This arises when a real estate agent causes harm to a third party with whom they have no contractual relationship. Article 1382 of the Civil Code states that "Any act of a person that causes harm to another obliges the person whose fault it was to repair it," while Article 1383 indicates that anyone who causes harm through their negligence or recklessness .
2. Obligations and duties of the real estate advisor
From the above, we can see that the role of a real estate advisor carries a comprehensive responsibility that goes beyond what construction companies or owners of completed properties can offer the client. Therefore, we could summarize the main obligations to highlight as follows:
- Accuracy of information : The advisor must guarantee that the data about the property is correct and complete, avoiding the omission of relevant information that could mislead the parties.
- Due diligence in documentation : The advisor is expected to verify the authenticity of the property documents and ensure that the property is free of liens or encumbrances.
- Professional advice : The advisor has the duty to properly guide his clients on the legal and financial aspects of the transaction.
- Confidentiality : You must not disclose confidential information about your clients without their consent.
- Regulatory compliance : Real estate activity must adhere to Law No. 155-17 on Money Laundering, as well as the provisions of the Real Estate Registry.
3. Legal consequences of non-compliance
When a real estate advisor fails to meet their obligations, they may be subject to civil and even criminal penalties.
- Civil sanctions : If it is proven that the breach of contract or the negligence of the advisor caused economic damages to the client, the client may demand compensation through a civil liability action.
- Criminal penalties : In cases of fraud or real estate deceit, the advisor could face legal proceedings under the Dominican Penal Code.
4. Relevant case law
The Supreme Court of Justice has echoed what has already been established, condemning the real estate broker when he does not verify the legitimacy of the property documents, or when he has not acted in good faith or when he provides false information or professional negligence.
Conclusion
It is the responsibility of all real estate agents to act ethically, in good faith, and with good conduct. When we fail to comply with regulations, we can not only face personal legal consequences, but we can also cause irreparable harm to a potential buyer. Case law has reaffirmed the importance of good faith and regulatory compliance. Implementing best practices not only protects clients, but also safeguards the agent's reputation and continued presence in the market.
The author is a lawyer and Broker Owner of Domus RD.
