By Reyna Echenique
Special for El Inmobiliario
In an increasingly competitive sector, the temptation to embellish reality in real estate marketing strategies is dangerously appealing. However, the line between presenting a project favorably and making unfulfillable promises has both ethical and legal implications that every real estate professional must consider.
Between persuasion and deception
Effective real estate marketing aims to highlight the best features of a property or project. However, when descriptions, images, or presentations deviate significantly from reality, we enter problematic territory. What begins as "commercial exaggeration" can escalate into misrepresentation or deceptive advertising with legal consequences.
It is important to remember that Article 1134 of the Dominican Civil Code establishes that "Legally formed agreements have the force of law for those who have made them." This means that promises made during the marketing phase can be considered part of the commercial agreement and, therefore, legally enforceable.
Consequences of deceptive marketing
The implications of marketing that doesn't reflect reality go beyond customer dissatisfaction. 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." This provision opens the door to claims for damages when a buyer acquires a property based on inaccurate representations.
Additionally, the Consumer Rights Protection Act (Law 358-05) specifically protects consumers against deceptive practices, including false or misleading advertising. Penalties for non-compliance can include substantial fines, public retraction obligations, and even criminal liability in serious cases.
Law 358-05 establishes specific obligations for responsible real estate marketing that every professional in the sector should know:
Articles 33, 84, and 85 require the provision of truthful, clear, timely, and sufficient information about properties. This includes complete characteristics, conditions, and price.
Article 88 expressly prohibits misleading advertising, including images or texts that may mislead about features, location or available services.
Compliance with these provisions not only avoids legal penalties, but also builds a foundation of trust with customers in the long term.
Areas of common risk
Certain aspects of real estate marketing require special care to stay within the bounds of responsibility:
Visual representations, such as renderings or processed images, must clearly indicate that they are artistic representations and not actual photographs. The views, finishes, and spaces shown must reasonably correspond to the expected final result.
Descriptions of features and amenities should be accurate and avoid ambiguity. Terms such as "near," "coming soon," or "planned" should be used sparingly and always with appropriate clarification.
Delivery times and construction stages require particular attention, as they are determining factors in the purchase decision and are frequently subject to contingencies.
Effective and responsible marketing
The good news is that real estate marketing can be both effective and ethical. Professionals who adopt a responsible approach find that honesty not only protects them legally, but also builds a solid reputation that generates trust and referrals.
Responsible marketing strategies include:
Accurate documentation of all promised features, ensuring they are backed by approved plans and technical feasibility.
Transparent communication about possible changes or contingencies, especially in projects under development.
Customer education about the buying process and what they can expect at each stage, proactively managing expectations.
The informed customer: An ally, not an adversary
Contrary to some industry fears, a well-informed customer is not a threat but a valuable ally. When a buyer clearly understands what they are purchasing, including limitations and potential contingencies, the risk of future dissatisfaction is significantly reduced.
A key aspect of responsible marketing is providing buyers with accurate and complete information, giving them all the necessary documentation to make informed decisions. This includes up-to-date plans, technical specifications, the property's legal status, current permits, and any other relevant documents that mitigate the risk of an uninformed purchase. This practice not only fulfills legal obligations but also builds trust and significantly reduces the risk of future disputes.
Transparency in real estate marketing doesn't mean highlighting negative aspects, but rather presenting a complete and balanced view that allows for informed decisions. This approach not only complies with the legal obligations established in Law 358-05, but also fosters a climate of trust that facilitates sales and long-term satisfaction.
Building a culture of responsibility
The shift towards more responsible real estate marketing requires a collective commitment from the industry. Developers, agencies, and agents leading this transformation are not only setting new standards but also building respected and lasting brands.
Implementing clear guidelines on marketing communications, ongoing training of sales teams, and proactive legal review of promotional materials are essential steps in this process.
Towards a future of trust
In an increasingly sophisticated and informed market, transparency is not only an ethical and legal obligation, but also a competitive advantage. Professionals and companies that adopt a responsible approach to their real estate marketing build relationships of trust that extend beyond the individual transaction.
The future of the Dominican real estate sector depends largely on its ability to raise its standards of business communication. Responsible marketing, far from limiting sales opportunities, expands them by building a stronger and more reliable market for everyone.
This article is part of the series 'Good Real Estate Practices in the Dominican Republic'.
The author is a lawyer and real estate entrepreneur, CEO of Echenique Group, a coach, trainer, and speaker certified by Maxwell Leadership and trained by Tania Báez, Secretary of the AEI Board of Directors 2024-2026. She is a Realtor specializing in the Dominican and international real estate sector.
