Escarlin Pozo
El Inmobiliario
SANTO DOMINGO.- Criminal lawyer Francisco Álvarez Martínez stated that bad real estate practices have become a growing problem that demands urgent intervention from the State.
He indicated that this intervention must be carried out in terms of transparency, accessibility to information, minimal legal support for citizens, and regulations that safeguard the rights of buyers.
This was announced through his X account –formerly Twitter– where he specified that the reality of the situation is becoming “critical” because “most buyers” do not have the tools to properly vet the property they wish to purchase.
In her publication, she outlined the steps each buyer should take before finalizing any real estate transaction. She divided the explanation into two perspectives.
The first scenario is when the property already exists, meaning it is fully built. In this case, she shared that it is essential to request the property title to confirm that the person making the sale is the owner.
Francisco Álvarez Martínez. (EXTERNAL SOURCE).
Otherwise, if the process is being carried out by an attorney-in-fact – with a legal power of attorney – it is advisable to speak directly with the owner to ensure that they are aware of the intended sales process.
It also specifies that it is essential to contact the notary to verify that the notarial act was performed by him and that it is not an attempt at fraud.
Furthermore, the lawyer specified that it is necessary to check in the Property Registry that the property has no objections, mortgages, litigation or contingencies.
If the property is in the planning stage, that is, a project in the construction phase or yet to be built, it should be verified whether the developers are part of any recognized association, such as the Dominican Association of Housing Builders and Promoters (Acoprovi).
However, he added: “It is not an absolute guarantee, but it reduces risks through internal controls and regulations for its members.”.
Furthermore, he stated that it is very necessary to prioritize real estate brokers who have prestige or a recognized track record.
Although he specified that there is no strict regulation of this sector in the country, he pointed out that when the professional is highly recognized, it can add a level of security.
In that regard, he pointed out the need to establish a legal framework to regulate real estate brokerage, as the lack of regulations leaves buyers vulnerable. Therefore, he insisted that a real estate brokerage law must be drafted urgently.
Finally, he indicated that it is essential to request information about building permits and plan approval before making a purchase.
“Depending on the project phase, some documents may not yet be available, but what does exist should be shown to the potential buyer. We aim to make this information easily verifiable on a website,” he pointed out.
The keys to stopping real estate fraud
Francisco revealed that real estate fraud will persist in the Dominican Republic as long as “legal processes remain complex and costly for buyers.”.
To address this situation, the specialist proposes that the Government create a service office with access to basic registry information, under the supervision of lawyers, where citizens can go for basic consultations and advice.
It also raises the need to democratize information on the internet.
“Everything that is not 'reserved' or 'secret' by law should be available in real time. This would allow users to check, for example, whether a property has liens or encumbrances, reducing dependence on intermediaries,” he explained.
In turn, it suggests that the State develop and launch, in a strategic manner, a massive awareness campaign to inform and educate about the risks of acquiring a property without the proper verification process.
Among his points, he mentioned the creation of a portal or website where the necessary documents are detailed before a person proceeds to buy a property.
Finally, he stated that the nation's legislative framework must be strengthened so that the Public Prosecutor's Office can act ex officio in cases of real estate fraud and those considered exceptional, with the aim of not depending exclusively on a private complaint to take action.
