SANTO DOMINGO– The Dominican Republic is currently the only major real estate market in the Hispanic Caribbean without a mandatory public registry of intermediaries, lawyer Reyna Echenique declared this Thursday, arguing that a law to regulate real estate agents is an urgent necessity to protect the country's image.
Speaking at the "conversation on the law that regulates intermediation and misleading advertising," held in the Senate of the Republic, where the bill was approved, the real estate law specialist stated that this proposal finally puts the country on par with its competitors.
““I’ve seen families lose their life savings by trusting those who shouldn’t be promoting, developing, or brokering a property. I’ve seen investors arrive in this Caribbean paradise full of hope and leave with misgivings. And I’ve also seen something even more important: a sector that wants to do things right, but that today competes on an uneven playing field,” Echenique explained.
He said that the Dominican Republic currently has one of the most dynamic and attractive real estate markets in the region, and that, however, this growth has not been accompanied by adequate regulation of intermediation.
He added that this situation has created a vacuum, where anyone can work as a real estate agent, where there are no mandatory minimum requirements, where there is no structured supervision, and where the consequences often come too late.
“And that void has a cost that goes beyond our borders,” he stated, noting that the real estate sector is, globally, one of the preferred vehicles for money laundering, labeled by international organizations as a high-risk sector.
“Without registration, authorization, a license, or formal obligations for intermediaries – even though they are obligated entities – the country is exposed to international assessments that can affect our financial rating and our correspondent banking relationships,” said Echenique, who is a member of the board of directors of the Association of Real Estate Agents and Companies (AEI).
He pointed out that he has studied for years the regulatory frameworks of the markets with which the country competes for capital, noting that "we are lagging behind.".
“The United States requires state licensing and continuing education. Spain has mandatory registration for real estate agents. Panama—our direct Caribbean competitor—has had a real estate technical board since 1973. Mexico, Colombia, and Costa Rica each have their own formal licensing mechanisms. The Dominican Republic is currently the only one of the major real estate markets in the Hispanic Caribbean without a mandatory public registry of intermediaries. This law finally puts us on par with our competitors.”.
Reyna Echenique said that when a market operates without clear rules, mandatory licensing, and minimum standards, the system itself ends up rewarding speed over due diligence. “Properties or projects are promoted without proper verification, without validating their legal status, without analyzing risks. And often, the financial incentive ends up outweighing professional responsibility.”.
He added that it's not a problem of people, but of incentives. "And incentives are set by regulation.".
He said that the real estate brokerage law will, for the first time, provide a solution built on the realities of the Dominican Republic. It's a law conceived not from theory, but from the practical experience of those who work in the sector every day.
“This law does not contradict economic freedom—it mandates it. This law is not a limitation. It is a historic opportunity for the Dominican Republic; it proposes something fundamental: to take firm steps toward a more organized, more transparent, and more reliable sector.”.
More about the discussion
During the event held at the Senate of the Dominican Republic, a panel discussion took place with Senator Rafael Duluc, representing La Altagracia province and the project's proponent, and attorney María Cristina Grullón, who assisted in drafting the document. The discussion was moderated by Alberto Bogaert, president of the AEI (Association of Independent Entrepreneurs).
Recommended readings:
- Lawyers will need a license to market real estate, according to a bill
- Two former AEI presidents affirm that approval of the real estate law must be accompanied by effective regulations
- Senate approves law against misleading advertising in the real estate sector
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