SANTO DOMINGO– Article 20 of the draft bill regulating real estate brokerage in the Dominican Republic, currently under review by the Justice Committee of the Chamber of Deputies, proposes a series of prohibitions for real estate agents. If the legislation is approved, these measures would take effect.
“Without prejudice to the prohibitions arising from other provisions of this law, Real Estate Intermediaries may not,” the article states, immediately listing the 13 actions.
The first is not to carry out activities outside of those expressly authorized by this law, and contrary to its corporate purpose.
“Performing the authorized activities without having conclusive evidence of the quality of ownership of the properties in question, through the verification of the corresponding certification of legal status of the property issued in the name of the client who claims to hold said quality,” is the second point.
The third point contained in the document is the non-performance of authorized activities through documents or contracts other than those approved by the Ministry of Housing, Habitat and Buildings (MIVHED), or without the evidence described in the previous section, without both contracting parties being assisted by a legal professional.
The fourth prohibition refers to not using the funds or real estate they receive from their clients for operations or purposes other than those for which they were entrusted.
“Guaranteeing returns or assuming losses for their clients in the transactions to be carried out” is the fifth action that cannot be carried out.
Acquiring properties that they were ordered to sell, without the respective express authorization of the client, will also not be allowed, according to what is contained in the proposal.
“Making or simulating transaction offers with the aim of artificially fixing or changing property prices” is listed as the seventh prohibition.
Similarly, according to the document, it would be prohibited to prioritize the purchase of a property on one's own behalf, or on behalf of related persons, when there is a purchase offer made by a client regarding the same property under better conditions.
“Charging customers fees and commissions that have not been previously established in writing,” the proposal states.
Number 12 prohibits proposing real estate transactions to clients knowing that they entail legal or financial risks, without providing legal warnings and recommending the assistance of a legal professional.
“Associating or affiliating with your agency Real Estate Agents who are not authorized by the Directorate of Real Estate Intermediation of the Ministry of Housing, Habitat and Buildings (MIVHED)” is the latest restriction proposed.
It adds that “in cases where the property rights of the real estate are not established in a title certificate in the name of the person who claims to hold that right or the same has not been legally determined (demarcated), the Real Estate Agent must inform his client in writing and verify that the signing parties are represented by a lawyer to finalize the transaction,” it states.
