SANTO DOMINGO- The bill on real estate rentals and evictions, approved in its first reading by the Chamber of Deputies last Wednesday, includes a special fund to promote the development of the real estate market in the country.
According to the content of the legislative piece, said fund will be administered by the Ministry of Housing, Habitat and Buildings (MIVHED).
The project establishes that if the deposit corresponding to the tenants for the right to rent is not made within a period of no more than 30 days in the Reserve Bank, which would be the governing entity of the funds, the owner will pay a surcharge of 20% for each month of delay during the first five months, and one percent, from the sixth month until the registration of the contract is made.
“The amount of this surcharge will be collected by the Reserve Bank of the Dominican Republic, which will transfer it to a special fund for the promotion of the development of the Real Estate Market, which will be administered by the Ministry of Housing,” the document states.
It adds that the owners and managers of houses, apartments, buildings, offices and physical spaces for rent in urban and suburban areas; or of warehouses, industrial buildings and the like, will deposit in the aforementioned bank the sums that they require from tenants as a deposit in the original contract, to guarantee the payment of rents.
“The Banco de Reservas de la República Dominicana will send a copy of the lease agreement to the City Hall corresponding to the property's address. To receive the security deposit, a copy of the agreement must be deposited with the corresponding City Hall,” it states.
The project specifies that Banreservas will pay interest on the sums received in deposits, at a rate similar to that established for savings accounts, interest that will be added to the initial deposit.
It notes that the financial institution will keep a record of the deposited contracts. “As soon as the rental agreement ends, and the landlord is due to return the deposit or a portion thereof, the tenant must obtain a certificate from the landlord or the person in charge of the rented property, confirming that the deposit can be released to them.”.
According to the draft law, any difficulties arising from the return of the deposit will be resolved in the first instance by the justices of the peace of the jurisdiction to which the property corresponds.
The bill approved by the deputies was sent back to the same special committee that studied it, then approved on second reading and sent to the Senate for study and analysis.
