SANTO DOMINGO.- After lapsing last Friday in the Senate because the ruling party could not agree to approve it, the bill on real estate rentals and evictions will be reintroduced this Monday, July 28, at the start of the extraordinary legislative session.
The initiative, agreed upon in the second reading in the Chamber of Deputies, was approved in the first reading, with the deadlock occurring during the second reading in the Upper House.
The legislation failed to pass by a single vote. After several debates, it was decided that the bill should be studied in more detail, so Ricardo de los Santos, the Senate president, called for a vote to table it.
Main articles modified in the Chamber of Deputies
Around 20 articles of the bill on real estate rentals and evictions were modified by the Chamber of Deputies, after its approval on Friday the 18th of this month in the second reading by that legislative body, which accepted most of the observations made by entities of national life linked to the real estate business.
The legislative piece authored by the president of the Chamber of Deputies, Alfredo Pacheco, seeks to align with the new market, since the current one dates back to 1959.
The special commission chaired by Congressman Amado Díaz held public hearings on June 25, where representatives from various institutions were heard, who made their proposals, with a view to strengthening the proposal and achieving a functional instrument for both owners and tenants.
After analyzing the opinions of the various stakeholders involved, the commission modified approximately 20 articles.
Article 2 : Paragraph six was changed to paragraph four and read: Rentals of houses or apartments for periods of less than thirty days. It is now paragraph four and reads: "Rentals of properties for tourist or recreational purposes, for periods of no more than ninety days."
Article 3 has two paragraphs; the first one was modified: It previously read: the parties may agree to take out an insurance policy against the risk of non-payment and for damages caused to the property. It now reads: “Either party may be represented by special power of attorney.”
Article 4
Previous: A co-owner of an undivided property may only rent it with the consent of the other co-owners. Now: “The intended use of the rented property shall be for residential, commercial, or non-profit purposes and shall be specified in the rental agreement.”
Modified:
Paragraph I.- In the absence of an express stipulation in the contract, the destination of the property will be the same as that for which it has served before or that which corresponds to it according to its own nature.
Paragraph II.- The change of use of the property that the owner has not expressly authorized, even if it does not cause him harm, entitles him to invoke the termination of the contract.
Article 5
It contained a single paragraph, which was modified by this text: “The owner reserves the right to require the tenant to provide proof of a guarantor or joint surety, who, in the absence of the tenant, assumes the payment obligations to the owner.”.
He also added a second paragraph: “In case of tacit renewal, the obligations of the joint guarantor are extended until the delivery of the property to the owner, unless the latter has communicated the termination of the contract within the agreed time.”
Article 7
The brokerage commission will be the responsibility of the party hiring the service. It was added: “All listings or offers for renting a property are presumed to have been ordered or contracted by its owner.”.
Article 8
It is now called “Rental Price Readjustment”, whereas previously it was called “the price readjustment”.
It contained a single paragraph, which was also modified.
Former
If the parties do not establish the amount of the price adjustment in the contract, the updated inflation rate reported by the Central Bank will be used as a reference for indexation purposes.
Now
The adjustment of the housing price will be subject to the agreement between the parties, and this cannot exceed ten percent (10%) of the value of the rent at the renewal of the contract.
Article 9
Former:
The rental period will be determined by the parties. This period will be stipulated in the contract and will be automatically extended unless the parties have expressed their intention not to renew it. In verbal contracts, the rental period is presumed to be at least one year.
Now:
The rental period will be determined by the parties. This period will be stipulated in the contract and will be automatically extended unless the parties have expressed their intention not to renew it. In a verbal residential lease agreement, the rental period is presumed to be at least one year, and for properties intended for commercial or non-profit activities, two years.
Article 10 , concerning the causes of termination of the contract, was amended with the following paragraphs:
- By mutual agreement between the parties;
3) Loss of the rented property due to unforeseen circumstances or force majeure that destroys or renders the property uninhabitable;
4) Failure or non-compliance with the obligations arising from the contract or legal violations invoked and proven by one of the parties;
Article 11
It was modified and three items were added.
Death of the tenant. In the event of the death of the tenant, the following may be subrogated by right until the term of the contract, in the following order of priority:
1) The tenant's spouse who lived in the property with him at the time of his death;
2) The person who has maintained a de facto marital relationship with the tenant;
3) The ascendants and descendants of the tenant who have habitually lived with him in the rented property.
Paragraph amended.—If, within thirty days of the tenant's death, none of the persons listed in this article expressly states their interest in assuming the lease, the contract shall be dissolved and the owner may take possession of the property without any formality. The tenant's furniture and belongings shall be inventoried in the presence of the Justice of the Peace, who shall authorize their deposit in the appropriate location. The same terms and conditions of the contract shall apply to the successor.
Article 12
Formerly called disengagement from the home, now called “abandonment of the property”
Former:
The de facto separation of the tenant from the rented property will not release him from the contracted obligations, nor the spouse nor those who continue to live in the dwelling.
The following paragraph was added: If it is a case of definitive abandonment and the property remains closed, the owner may sue before the justice of the peace for the rescission of the contract, the restitution of the property and the payment of the overdue rents.
Article 13
“Guarantee of obligations and payment of rents” was modified.
Former
"Landowners and managers of properties intended for housing or other purposes may require tenants to provide a security deposit of up to two months' rent. This deposit, which may be provided as a guarantee of up to two months' rent, ensures payment of the rent.".
It was changed to: “The owner or lessor of a property intended for housing may require the tenant or lessee, as a deposit, an amount not exceeding three months of the rental price.”.
Paragraph added - in the case of properties intended for commerce or non-profit activity, the amount of the deposits will be agreed between the parties.
Article 14
Formerly called “Mandatory Registration of the Contract and Deposit of Deposits”, it is now called “Registration of the Rental Contract”, which states the following:
The owner or landlord or the tenant or lessee will register the rental agreement in the Civil Registry Office and Mortgage Registry of the town hall where the property is located, for the purpose of enforceability against third parties.
Article 15
The “Security Deposit” was added, which states the following:
Former
The agreed sum as a guarantee, accompanied by a copy of the rental agreement, will be deposited by the owner or landlord in a bank located in the place where the property is located.
Now
The agreed sum as a guarantee, accompanied by a copy of the rental agreement, may be deposited by the owner or lessor in the branch of the Agricultural Bank or the Multiple Reserve Bank of the Dominican Republic, corresponding to the location of the property, by prior agreement between the parties.
Article 16
Return of security deposit. The owner or landlord, once the property has been received in accordance with the conditions stipulated in the contract, will return or authorize the tenant or lessee to withdraw the sum given as a security deposit from the bank where the deposits have been made, without further formality.
Article 19 deals with the obligations of the owner or landlord, which was formerly Article 17, it was modified and 4 numbers were added.
Article 22, “Public Offer of Rentals,” was also added
Newspaper notices or notices in any other form of advertising, through which properties are offered for rent, will be considered a public offer.
Regarding article 24 , which deals with the tenant's obligations, section 4 was modified. "To carry out, at their own expense, the repairs that arise from damage through the use or enjoyment of the property by themselves or their dependents;"
Article 27 was eliminated. It stated: "The tenant is responsible for any damages and deterioration caused to the property by the tenant, the people who live with him, and those who visit him, as well as those resulting from the misuse and exploitation of the property.".
Articles 37, 45 and 51 were also modified. Chapter IX was modified and an article was added to Chapter XVII.
