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Home > Real Estate Market > Draft Rental Law Penalizes Tenant for Early Termination of Contract...

Draft rental law penalizes tenants who terminate their contracts before the agreed-upon term

SANTO DOMINGO - The proposed law on real estate rentals and evictions stipulates that if a tenant unilaterally terminates a lease before the agreed term, they will be obligated to pay the landlord 20% of the rent for the remaining time until the lease expires.

The legislation approved in its first reading in the Chamber of Deputies last week also establishes that when the owner decides not to renew the contract, he will notify the tenant six months before the end of the contract if the property is occupied by a commercial or industrial establishment, and three months if that is not the case.

 “The termination of the contract by the clear will of the owner not to renew it does not entail any judicial procedure, so the owner is only obliged to notify the term established in the main part of this article, according to the destination of the rented property,” it says.

It adds that owners of properties intended for rent, even if there is no express agreement, are obliged to guarantee the legitimacy of their right and the peaceful use and enjoyment of the property for the entire time of the contract; deliver to the tenant the property subject to the rental with its facilities, services, accessories, spaces and furniture, in good condition of service, safety and sanitation, according to the contract; except in cases where the tenant assumes the obligation to restore the property in poor condition.

 “Do not disturb the tenant, either in fact or in law; nor hinder, in any way, the use and enjoyment of the rented property, except for urgent or necessary repairs. The owner shall not be obliged to carry out repairs that originate from damage or deterioration caused by the tenants.”.

Without the right to increase the rent, the landlord is obliged to repair whatever is necessary in order to keep the property in good condition for the use for which it has been intended, unless the deterioration is attributable to the tenant.

 “The tenant will immediately inform the landlord of the urgency of carrying out the necessary repairs to avoid further damage to the property within a maximum period of five days.”.

The bill stipulates that any improvements and repairs authorized and carried out by the tenant will remain the property of the landlord, unless expressly agreed otherwise. “If, during the tenancy, for any reason, the leased property becomes the property of someone other than the original landlord, the new landlord will be obligated to respect the contractual relationship under the same terms agreed upon, and any actions related to the termination of the lease may only be processed in accordance with the provisions of this law.”.

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