SANTO DOMINGO. – Lawyer Alexandra Ovalles believes that the conflicts surrounding the referral process, which have left a bad taste in the mouths of some real estate agents, occur because the commission amounts they are entitled to are not clarified before negotiations begin.
Therefore, he agrees with the arguments that such a figure should not be excluded from real estate transactions, but rather that the role it plays within the transactions should be clearly defined to avoid subsequent disagreements.
“Most conflicts arise because they believe that just for making a referral they should receive a commission of what would be 50% of what real estate agents charge. That's where the problem lies,” explained the manager of Félix Ovalles y Asociados.
He opined that this is the reason why many real estate agents are advocating for the elimination of this role in light of the potential regulation of the real estate brokers law currently before the Chamber of Deputies. “It’s because of the situations that have arisen and the positions they take, that these individuals make demands as if they were the ones doing the work, when in reality it’s the real estate agents who are doing it.”.
Ovalles believes that referrals should be rewarded, but not paid a high commission. “A referral can be anyone, anyone who knows about your work, your properties, and therefore I don't think they should be given a percentage as if they were a colleague,” the real estate law specialist insisted.
Alexandra Ovalles. (External source).
According to the lawyer, the percentage of an agent's earnings from a property sale should never be discussed. "That 50% should be reserved for those who regularly practice the profession, as they are the ones who do the real work.".
He insisted that the work a real estate agent has to do to close a deal is so arduous that it seems very unfair to offer a high percentage to someone who doesn't have to assume any kind of responsibility.
