By Reyna Echenique
Special for El Inmobiliario
At a time when technology allows instant access to information and other sectors have experienced a digital revolution, the Dominican real estate sector is still waiting for a fundamental transformation: public access to institutional permits and certifications, a pressing need that requires greater digital interconnection between institutions to facilitate the verification of essential information by buyers, lawyers, and real estate advisors.
The current state
While institutions such as the Real Estate Registry, the Chamber of Commerce, ONAPI and the DGII have made significant progress in digitization and public access to their information, other key entities in real estate development maintain less accessible processes, creating information gaps that affect the transparency of the sector.
The need for institutional transparency
Digital access to essential information is required, such as:
● Status of CONFOTUR approvals and in process at the Ministry of Tourism
● Environmental permits granted and in process
● MIVHED building permits
● Municipal permits and no objections
● Land use certifications
CONFOTUR and building permits: Critical examples of the need for transparency
The current situation with CONFOTUR approvals and building permits perfectly illustrates the urgent need for public access to information. Real estate projects are frequently promoted and sold based on promises that do not correspond to reality
● Some claim to have approvals when they only have applications in process
● Others promote CONFOTUR benefits without having started the process
● There are cases where units are delivered without the promised approval
● Projects are announced with "permits in process" when there is not even a registered property right to the land where it would be built
● Projects are marketed without the necessary building permits
The lack of public access to this fundamental information leads to:
● Risk to buyers who invest relying on permits and benefits that may not materialize
● Unfair competition among developers
● Loss of credibility in the sector
● Possible future legal contingencies
Benefits for the sector
Implementing a public access system to this information would generate multiple advantages:
●Greater security in real estate transactions
●Reduction of due diligence process times
● Strengthening investor confidence
● Professionalization of real estate consulting
● Transparency in project development
Success stories
Institutions that have already implemented online consultation systems demonstrate the benefits of digital transparency:
●Real Estate Registry: Access to information on registered rights, encumbrances and liens
●ONAPI: Verification and registration of trade names and trademarks
●Chamber of Commerce: Business Registry Inquiry
● DGII: Validation of taxpayers and tax status
These examples demonstrate that technology and transparency are not only possible, but also strengthen institutions and facilitate business transactions.
The challenge of "sensitive" information
The argument that certain information is "sensitive" and therefore should not be shared clashes with the reality that these permits and certifications are public documents. Their verification should not depend on the developer's discretion, but rather be available through the issuing institutions.
Implementation proposal
Modernizing access to this information requires:
● Creation of institutional consultation portals
● Standardization of presentation formats
● Constant updating of databases
● Interconnection between institutional systems
● Security and verification protocols
Impact on real estate consulting
Access to this information would allow real estate agents to:
● Offer more precise and documented advice
● Reduce risks in transactions
● Strengthen client-advisor trust
● Professionalize the intermediation service
● Protect the buyer's interests
Impact on legal practice
The digital availability of this information is crucial for real estate lawyers, who are frequently tasked with conducting due diligence on construction projects. Direct access to these documents would not only expedite legal review processes but also allow for better-informed legal opinions, reducing risks for both buyers and their legal advisors
Towards a more transparent sector
Institutional transparency is not just a technical necessity but an imperative for the healthy development of the real estate sector. A market where essential information is accessible is a market that generates greater trust and attracts better investments.
This bonus article complements El Inmobiliario's 'Hidden Challenges of the Real Estate Sector' series, providing an insight into the need for greater institutional transparency in the sector.
The author is a real estate lawyer, real estate entrepreneur CEO Echenique Group, Secretary of the AEI board of directors 2024-2026, realtor specializing in the Dominican and international real estate sector.
