The Dominican Republic’s real estate sector stands as one of the most robust and dynamic economic forces in the Caribbean, drawing billions of dollars in combined local and foreign investment annually. Yet for all its economic weight, this high-growth industry has operated for years without a unified, comprehensive regulatory framework governing professional real estate practice—a gap that has opened the door to widespread misconduct that endangers investors and undermines market integrity.
Unqualified, unlicensed practitioners have flooded the unregulated market, bringing with them a rash of deceptive and fraudulent activities. Common bad-faith practices include marketing properties with no valid legal title, launching development projects with false or misleading advertising about amenities, timelines or pricing, and engaging unethical financial arrangements that put both domestic and cross-border investors at severe risk of financial harm. Without formal regulation, buyers and investors have no guaranteed legal recourse when they fall victim to these scams, leaving many to absorb devastating, irreversible financial losses.
To close this regulatory gap and root out systemic misconduct, lawmakers and industry leaders have advanced a landmark real estate regulation bill that would place all licensed practitioners under the direct oversight of the Ministry of Housing, Habitat and Buildings (MIVHED) through its dedicated Department of Registration, Control, and Real Estate Intermediation.
According to Alberto Bogaert, president of the Dominican Association of Real Estate Companies and Agents (AEI), the bill has been under active review in both the Senate and Chamber of Deputies since 2023, but has yet to receive a final approval vote. Bogaert notes that three core barriers have stalled the legislation: limited legislative prioritization among other national policy goals, low awareness among lawmakers of the real estate sector’s outsized contribution to the national economy, and insufficient coordinated institutional pressure to advance the bill through the full legislative process. Over the past three years, AEI has held repeated meetings with key legislative committees to emphasize the urgent need for the reform, but it remains classified as a non-priority within the country’s broader national investment regulatory framework, despite open support from government officials for the initiative.
If ultimately enacted, the bill would enact sweeping changes to market operation, starting with a mandatory national licensing requirement for all real estate agents, promoters and developers. No professional would be allowed to facilitate property transactions or market real estate assets without first securing official authorization from the regulatory body.
A core focus of the legislation is increasing market transparency, with a formal definition of misleading advertising that covers misleading claims across both digital and traditional media related to a property’s features, availability, pricing, project delivery timelines, and sales terms. Additional provisions prohibit agents from engaging in transactions for properties they do not hold legal rights to, as well as the misuse of client deposit funds—all designed to strengthen consumer protection and rebuild public trust in the sector.
To enforce compliance, the bill outlines strict penalties for violations, including fines of up to 50 times the national minimum wage and temporary suspension of operating licenses for repeat or severe misconduct. The legislation also explicitly bans a range of unethical practices: unauthorized purchase of properties that an agent has been contracted to sell, artificial manipulation or simulation of offers to inflate or manipulate property prices, and charging hidden fees or unwritten commissions that were not pre-disclosed and agreed to by clients.
Agents will also face legal liability if they recommend a transaction they know carries significant legal or financial risk without advising their client to retain independent legal counsel, a standard designed to reinforce that professional due diligence is a core requirement of ethical practice. All agents will be required to disclose all relevant terms to clients before initiating any transaction, embedding transparency into every step of the property process. Finally, the law will formalize legal recognition for all documented contracts covering property transfer, lease, and usufruct, including payment, contribution and exchange arrangements, bringing long-overdue legal clarity to real estate transactions across the country.