SANTO DOMINGO.– The bill that would regulate real estate brokerage in the Dominican Republic, currently being studied by the Justice Committee of the Chamber of Deputies, is based on 17 definitions or terms that will be used to describe the actions and processes for its application.
Article 5 of the document contains the definitions that “are established as a reference for the application of this law.”.
The first concept refers to "Property Management", defined as the service by which a natural or legal person (client) entrusts another (real estate agent or real estate agency) with all or one of the following services regarding one or more properties: physical maintenance of the property, collection and monitoring of the economic obligations of the tenants, payments for services provided in the property, all this in exchange for an economic consideration freely agreed between the contracting parties.
Services related to the administration of condominiums are excluded from this definition, this being understood as the general representation of a condominium by a natural or legal person.
The second explanation is that a licensed real estate agency is a legal entity formally authorized by the Ministry of Housing, Habitat and Buildings (MIVHED) to carry out, through one or more affiliated or associated real estate agents, real estate brokerage services, real estate administration and other related services.
The third description relates to the authorized real estate agent, described as the natural or legal person, formally authorized by the MIVHED, to directly and habitually perform the functions of real estate intermediation, in real estate transactions of others, in the manner provided for in this law.
“Those who perform these functions with respect to real estate they own, for their own benefit, are excluded from this definition, unless they are developers or promoters of projects,” the project states.
The term "Commission" refers to the financial compensation or fee that a real estate intermediary receives for their work.
“A real estate developer is a natural or legal person who promotes or constructs homes, buildings, real estate units, or properties, who provides comprehensive solutions for the real estate project, develops its design and business plan, can secure the source of financing, the processing of administrative permits, the supervision of the work, as well as the management of collections, customer management and coordinates the delivery of the properties, directing their business activity towards the public or private market, developing it by their own determination or by contracting third parties,” says number 6.
Also included is “Relevant Information”, considering it as all that whose knowledge may reasonably affect a buyer in making decisions to acquire, lease or transfer real estate and, therefore, may significantly influence its price or value.
Definition 8 is “Real Estate Intermediation,” explained as the service provided to a natural or legal person (client) by another (real estate agent or real estate agency), in connection with the purchase, sale, or lease of a property of any type or use, or the mediation aimed at finalizing these transactions, in exchange for a fee freely agreed upon by the contracting parties. It adds that this includes the promotion and marketing of the property or properties involved in the transaction, as well as property management.
Section 9 refers to the “Real Estate Intermediary”, that natural person who, having received authorization from the General Directorate of Real Estate of the Ministry of Housing, Habitat and Buildings (MIVHED) corresponding, performs the functions of real estate intermediation.
“Legal authorization” refers to the document issued by the MIVHED to carry out the activities regulated by this law.
The term “Real Estate Market” refers to the supply and demand of real estate, regardless of its nature and use.
An offer is a written proposal issued with the purpose of entering into a contract regarding real estate, whether concerning the transfer of its ownership, its use, or its usufruct.
According to the document, the official list that MIVHED will publish, which will include the institutions or legal entities authorized to provide the training courses required by this law, is called the "Registry of Trainers.".
“Authorization Renewal” refers to the mandatory administrative process before the MIVHED, through which Real Estate Intermediaries and Real Estate Administrators update their operating authorization, guaranteeing compliance with and maintenance of the requirements and obligations established in this and other Dominican laws provided for this purpose.
“Real estate agencies will be responsible for processing the renewal of operating licenses for all agents affiliated or associated with them at the time of renewal,” the legislation details.
“Separation or blocking” is defined as the document that contains proof that a property will not be marketed by its owner for the time established therein, during which time the interested party will have the opportunity to gather the documentary and economic requirements required to sign a document that grants him some type of right to acquire it.”.
“Real estate transaction” is the one contained in item 16 and is defined as any operation based on a contract or document whose main purpose is the transfer, administration or usufruct of one or more real estate properties.
Finally, the document concludes with the “Sanctioning and Disciplinary Regime”, defined as the set of rules aimed at reinforcing compliance with the provisions of this law and other regulations governing the development and execution of real estate intermediation that may be applicable.
