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By Reyna Echenique
Special for real estate
The legal framework that governs condominiums in the Dominican Republic faces the challenge of adapting to a real estate market that has evolved dramatically since the creation of the condominium law in 1958. As the jurists Christoph Sieger and Alfredo Guzmán Saladín, the current legal framework, the current legal framework, pointed out It is insufficient in the face of the daily problems facing the condominium regime in our country. Last year we approach in this space the serious consequences of the default of maintenance fees; Today we deepen a broader problem that requires urgent attention.
A outdated legal framework
Law 5038 of 1958, although it was modified by Law 108-05 on Real Estate Registry, maintains significant empty that affect the efficient functioning of modern condominiums. While in jurisdictions such as Dubai, real estate authorities supervise and regulate maintenance fees, in the Dominican Republic these decisions are at the discretion of administrators without institutional supervision.
Legal gaps and their consequences
Among the most notable deficiencies, the absence of clear regulation on the figure of the condominium administrator, its specific functions and the applicable sanctions in case of non -compliance stands out. This legal vacuum has allowed some administrators to exceed their powers, imposing arbitrary measures that are not contemplated in the law or in coexistence regulations. Frequently, we see administrators that:
● They impose exorbitant quotas without justification
● They act as absolute owners rather than managers
● They lack the emotional intelligence necessary to handle conflicts
● They operate without any institution that controls their actions
New realities, new models
The development of the Dominican real estate market requires modern legal figures. For example, in Costa Rica there is the figure of the “condominium condominium”, which allows a more efficient management of tourist-immobiliar megaprojects. This structure would be ideal for projects such as those that are developed in Punta Cana, Cap Cana and other tourist areas of the country.
The condominiums of fact
A particular challenge is represented by condominiums, those who after years of construction and total sale to third parties have not yet been formally declared and constituted. This situation demands the creation of regularization mechanisms that allow these properties to integrate into the current legal framework.
The urgent need for reform
The modification of the condominium law has become imperative in the face of frequent abuses that legal gaps allow. The lack of supervision on the condominium regulations, usually written by the promoters without prior verification of the real estate authorities,- except for merely technical aspects- together with the absence of control over the actions of the administrators, has created a scenario where the lack of Professionalism in management generates constant conflicts.
Towards a modern regime
The legal framework update represents an opportunity for:
● Establish minimum requirements for administrators
● effectively regulate the new development models
● Create institutional supervision mechanisms of quotas and regulations
● Facilitate the regularization of de facto condominiums
● Modernize management and decision -making processes
The evolution of the Dominican real estate market requires an integral update of the condominium regime. This modernization should not only address existing legal gaps, but also anticipate the future needs of the sector. The incorporation of new legal figures, clear procedures and effective management mechanisms would strengthen legal certainty and facilitate the orderly development of increasingly complex projects.
This article is the first of a series about the condominium regime in the Dominican Republic.
LAuthor is a real estate lawyer, real estate businesswoman CEO Echenique Group, secretary of the Board of Directors AEI 2024-2026, specialized Realtor in Dominican and International Real Estate Sector.