SANTO DOMINGO – During the panel “Legal Guarantees in the Dominican Market for Real Estate Investment,” at the Forum El Inmobiliario Secure Meters: Real Estate Investment Squared,” expert Idamis Lozada Manzueta, Manager of the Contracts and Guarantee Formalization Division at Banreservas, offered a detailed look at how banks thoroughly evaluate legal security before executing real estate transactions.
Two key aspects of the analysis: client and property.
The banking sector, as a strategic ally of the real estate industry, plays a key role in ensuring that investments are made within legal parameters. Lozada explained that the banking analysis is conducted from two perspectives: the client requesting financing and the property that will serve as collateral. “We have to guarantee that the client acquires their property securely and also that the loan is backed by collateral,” he stated.
In her speech, the representative of the Association of Multiple Banks of the Dominican Republic (ABA) explained that banking entities, as regulated entities, must maintain rigorous control over guarantees, which implies requesting additional information in certain transactions, such as: project maintenance fees, parking plans and condominium declaration.
The absence of clearly identified parking spaces on the property certificate can negatively impact the property's desirability, directly influencing financing decisions.
Risk, maintenance, and long-term commitment are also factors.
Lozada explained that banks measure risk not only when granting a loan, but throughout its entire life, which can range from 10 to 20 years. Therefore, clauses are included that allow the bank to advance maintenance payments in case of default, in order to preserve the property's value.
“In a project where maintenance is not paid for, there can be deterioration that affects the condition of the warranty, which is the property,”Lozada warned.
In addition to individual buyers, banks also finance developers. In these cases, the project as a whole, the approval plans, and the execution conditions are studied to ensure optimal and sustainable development.
This presentation highlights that legal certainty is not just another formality: it is the cornerstone of trust between banks, developers, and buyers. From the parking plan to the legal structure of the condominium, every detail matters and everything must be properly documented. Also participating in the panel discussion, " Legal Guarantees in the Dominican Market for Real Estate Investment," were Annerys Meléndez, president of Acoprovi; Eddy Alcántara, executive director of Pro Consumidor; and the moderator was architect Vivian Reyes, CEO of Urbe Construcciones.
