Héctor Alies Rivas, an expert in real estate law, when consulted by this publication, stated that the rise of Airbnb, which is unregulated in the Dominican Republic, “raises interesting legal questions about the scope of property rights, rentals, and life in condominiums. The issue goes beyond matters of coexistence and warrants an analysis of the fate of condominium owners' rights,” he declared.
SANTO DOMINGO. -Regarding the problems that the short-term rental model is causing in some buildings in the country, which El Inmobiliario has been presenting this week, we share with readers the content of Law 5038 on Condominiums, enacted on November 21, 1958.
Héctor Alies Rivas, an expert in real estate law, when consulted by this publication, stated that the rise of Airbnb, which is unregulated in the Dominican Republic, “raises interesting legal questions about the scope of property rights, rentals, and life in condominiums. The issue goes beyond matters of coexistence and warrants an analysis of the fate of condominium owners' rights,” he declared.
He indicated that condominium regulations do not prohibit these types of rentals and that a homeowner has the right to rent their property for the time and amount they deem appropriate because they are exercising their property rights.
However, he emphasized that Article 4 of Law 5038 on Condominiums establishes that each owner, for the enjoyment of their exclusive property, may freely use the common things according to their purpose, without prejudice to the rights of the other owners.
"Unless otherwise agreed, each owner, for the enjoyment of their exclusive property, may freely use the common elements according to their intended purpose, without prejudice to the rights of the other owners. They shall be obliged to contribute proportionally to the expenses related to the conservation, maintenance, repair, and administration of the common elements. In the absence of a contrary agreement, this contribution shall be proportional to the value of the divided portions of the property, taking into account their size and location. The percentage established in the regulations that must be registered when the property is subject to the regime of this law may only be modified by the unanimous agreement of all interested parties," the aforementioned article states.
Furthermore, he cited that according to article 7 of the aforementioned legal provision, the condominium unit description form established by the General Regulations for Cadastral Surveys specifies the destination that each sector will have.
"Each owner shall, at their own expense, take care of the upkeep and repair of their own apartment, flat, dwelling or premises. They may not make innovations or modifications that may affect the safety or aesthetics of the building or the common services; nor use it for purposes other than those provided for in the building regulations, and in case of doubt, those that must be presumed by the nature of the building and its location; nor disturb the peace of the neighbors or carry out activities contrary to morality and good customs or that compromise the safety of the property," establishes Article 7.
Article 6 states: "Each owner may sell, mortgage or in any other way affect or lease the apartment, unit, dwelling or premises that belongs to him, without the need for the consent of the others," says article six.
Article 9 emphasizes: “For the purposes of the proper administration and enjoyment of the common things and by the mere fact of the property being organized in the manner established by this law, all the owners of the floors, apartments, dwellings and premises of the building form, obligatorily and by right, a consortium, with legal personality, which in relation to third parties and to the owners themselves will act as the legal representative of all the owners through an administrator. The powers of the consortium of owners, even when issuing or modifying the regulations, are limited to the collective application measures that concern exclusively the enjoyment and administration of the common things.”.
Article 10 continues to explain: “The owners' association may replace the existing regulations or make additions or modifications to them, which will be binding on all owners and their successors in title. However, the regulations or their modifications, as well as the exceptional agreements referred to in Articles 3, 4 and 8, are not binding on successors in title in particular nor enforceable against third parties except after they have been deposited in copy in the office of the corresponding Registrar of Titles, and have been noted on the back of the Original Certificate of Title and the existing duplicates.”.
Article 12 states: “Resolutions of the owners' association shall be binding provided they have been adopted by a majority vote of all interested parties in duly convened meetings. Each owner shall be entitled to a number of votes proportionate to the importance of their rights in the property, which shall be conventionally established when the property is registered in accordance with this law. This voting share may only be modified by the unanimous consent of all owners. A three-thirds majority of the owners' votes and an ordinary majority of the same shall be required to enact, modify, or replace provisions of the regulations for which this law or the original regulations do not require the unanimous consent of the owners.”.
Article 15: “The administrator, regardless of the form of their appointment, represents the building owners' association, either as plaintiff or defendant, and even against individual owners. They will need the prior authorization of the owners' assembly to act as plaintiff or appellant. The administrator will act on behalf of the building owners' association, without having to mention the name of each of the owners.”.
Regarding the competent body, Article 17 states: "Actions that may arise between the owners in relation to the administration and enjoyment of the common parts of the property, or with the interpretation or execution of the regulations, are within the jurisdiction of the Land Court. Likewise, the Land Court will be competent to hear any other actions that may arise as a result of the application of this law.".
