Failure to pay maintenance fees for common areas results in serious penalties that can lead to the owner of that property losing it.
SANTO DOMINGO- The Dominican Republic's Condominium Law, which dates back to 1958, must be updated and modified to adapt it to the new times and the needs of condominium owners, according to Reyna Echenique, a specialist in real estate law.
The real estate advisor and CEO of Echenique Real Estate also believes that although Law 108-05 on Real Estate Registration introduced changes, these were not significant, nor did it refer to the administration of condominiums.
“The current condominium law has a legal loophole regarding the role of the ‘Administrator,’ their functions, and the penalties for failing to fulfill their duties. Because of this, it becomes even more important that the person drafting the Condominium Regulations has the necessary legal capacity to fill this gap and address these legal shortcomings,” the expert explains.
Echenique understands that a modification of the Law is required to adapt to new market trends, including new legal figures that satisfy the needs of a real estate market with extensive development and growth, with super megaprojects that cover hotel zones under the modality of the famous Condo-hotel.
He states that he adheres to the proposal made to the legislators by Professor Fabio Guzmán Ariza, who once requested that the figure of "the condominium of condominiums" and the administrator of the Condo-hotel be included, to meet the need of the hotel industry to have a manager of properties belonging to third parties or other owners.
The expert understands that the ongoing confusion in the collection of condominium fees, which include both expenses related to common areas and private consumption (water, gas, among others), will continue to create conflicts among condominium owners, unless the law establishes the creation of efficient and individual mechanisms to execute the collection of both types of expenses.
Can you lose a property for not paying maintenance fees?
The real estate law specialist explains that registering the Condominium Lien in favor of the Condominium grants it a real right that can be enforced against a delinquent Condominium Owner, thus guaranteeing the outstanding balance of unpaid fees used to cover the maintenance of common areas. “This is confirmed by Law 108-05 on Real Estate Registration in its Article 100, paragraph IX, which states verbatim: ‘Overdue and unpaid fees for common condominium expenses enjoy the lien established in the Condominium Law.’”.
That is to say, he emphasizes, that after the registration of that Privilege, resulting in the enforceable title, which is sufficient to proceed with the seizure of the property after exhausting the legal mechanisms.
It concludes by stating that failure to pay maintenance fees for common areas results in serious penalties that can lead to the owner of that property losing it.
