By Reyna Echenique
Special for El Inmobiliario
While the Dominican real estate sector operates with written collaboration agreements and sales authorizations, these documents typically only establish commission percentages and payment methods, leaving a significant gap regarding the duties and rights of the parties involved. This practice creates situations where each party acts according to its own interests, hindering the professionalization of the sector.
The reality of current agreements
While collaboration agreements and sales authorizations exist, they rarely address the post-sale responsibilities of the parties involved. Developers, once the sale is finalized, can indefinitely delay commission payments or refuse to pay if the buyer backs out. Meanwhile, some agents, after receiving their commission, completely disengage from the process, leaving both the buyer and the developer without the necessary follow-up.
Towards a comprehensive contract
A professional brokerage agreement must go beyond commission terms. It is essential to clearly define the agent's obligations to monitor the entire purchase process, the maximum timeframes for commission payments by the developer, and the conditions under which the commission is considered earned, regardless of any subsequent withdrawal by the buyer.
The importance of working with AEI member agents and agencies
Members of the Association of Real Estate Companies and Agencies (AEI) recognize that real estate brokerage goes far beyond simply collecting a commission. A commitment to excellence and professional ethics requires comprehensive support from the initial transaction through to the closing. AEI agents understand that their responsibility includes post-sale follow-up and building lasting relationships with clients and developers.
Essential elements of a professional contract
A well-structured brokerage agreement should specify:
– Defined deadlines for commission payments
– Agent responsibilities throughout the process
– Conditions that protect the commission in case of withdrawal
– Post-sales follow-up obligations
– Communication mechanisms between all parties
Towards a new culture of service
Professionalizing the sector requires moving beyond a purely transactional view of real estate brokerage. Professional agents must understand that their role extends beyond closing a sale, while developers must recognize that timely commission payments and adherence to agreements are fundamental to maintaining healthy business relationships.
This shift in service culture is especially relevant in the current context, where the draft bill to regulate real estate services and brokerage contracts is being debated in Congress. Formalizing business relationships through comprehensive contracts will not only prepare the sector for this new regulatory framework but will also raise service standards for the benefit of all.
Building lasting relationships
Long-term success in the real estate sector depends on the ability to build and maintain trusting relationships. Brokerage agreements should be tools that facilitate these relationships, clearly establishing the expectations and responsibilities of each party. Only in this way can we build a more professional sector, where agents, developers, and buyers alike benefit from a transparent and lasting business relationship.
This article is part of the series "Good Real Estate Practices in the Dominican Republic".
The author is a real estate lawyer, real estate entrepreneur CEO Echenique Group, Secretary of the Board of Directors AEI 2024-2026, realtor specializing in the Dominican and international real estate sector.
