Spanish
The Association of Real Estate Agents and Companies (AEI) positively valued the intention of the National Congress to modernize the legal rental regime in the Dominican Republic, considering that it represents a relevant advance in terms of legal security, contractual order, and comprehensive regulation of the sector.
However, he warned that several critical points of the project require adjustments to avoid adverse effects on real estate investment, private property, and the professional practice of real estate intermediation.
In a position paper sent to the commissions responsible for the legislative study, the AEI highlighted innovative elements of the project such as the banking of the security deposit, the incorporation of insurance policies, and the design of a more balanced eviction procedure. However, the entity considers that certain provisions proposed in the project, as they are written, could compromise fundamental principles of the Dominican legal framework and the sustainable development of the real estate sector.
"From the Association of Real Estate Agents and Companies, we welcome the effort to modernize the Rent Law. It is a necessary initiative to provide greater legal certainty and strengthen confidence in the market. However, we call for this law to be approved in a balanced manner and without excesses," says Alberto Bogaert, president of the AEI.
Among the aspects that generate concern, the AEI points out as the main one the disproportionate criminal classification that would impose sentences of up to five years in prison on owners who do not exhaust the judicial eviction procedure, which, in the opinion of the guild, constitutes an unfair penalty for an eminently civil conflict.
This provision, they warn, could violate property rights and discourage formal investment in rentals.
Furthermore, the AEI questioned the automatic imposition of legal expenses on the owner, a practice that contradicts article 1593 of the Civil Code and alters the principle according to which whoever has the greatest interest in the operation assumes said costs.
The organization also warned about the risk of creating a regulatory precedent that affects future laws, such as the one currently in progress to regulate real estate and brokerage services, by encouraging practices that exclude professional agents from the negotiation process.
Another of the points noted is the omission of the obligation to return to the tenant the interest generated by the security deposit, which would represent a setback compared to provisions already contemplated in Law 4314. In addition, the need to clarify the difference between deposit and advance rent was highlighted, in order to preserve the scheme of three initial payments (2 for deposit + 1 for rent), common in current contracts.
“Penalizing the owner for a civil process, or altering contractual practices that work, can send a negative message to the sector. We need a law that gives confidence, that encourages investment and that preserves the professional role of the real estate agent. We are committed to contributing so that this law serves the sustainable development of the sector and the country,” adds Bogaert.
The AEI reiterates its support for the legal modernization process, but insists that the proposed adjustments are fundamental to guarantee a fair, technical, and functional law. The guild reaffirms its willingness to continue collaborating with the National Congress and the public and private actors involved, with the aim of achieving legislation that equally benefits owners, tenants, and professionals in the sector.
