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Free Guide to Hiring a Real Estate Lawyer
Brokerage in the Dominican Republic refers to the professional intermediation of transactions in exchange for a commission. In Salvaleón de Higüey, which is part of La Altagracia province, brokerage activity spans several sectors, including real estate, securities and investments, insurance, customs and logistics, and general commercial deals. The legal framework is primarily national, with local municipal rules affecting business permits and operations. Whether you are hiring a broker or running a brokerage business, your rights and obligations are defined by a mix of civil, commercial, consumer protection, anti money laundering, tax, and sector specific regulations.
There is no single unified Brokerage Law. Instead, the rules that apply depend on the sector. Securities brokers must be licensed and supervised, insurance brokers are regulated and registered, customs brokers must be accredited, and freight forwarders follow customs and transport rules. Real estate brokerage is largely contractual and governed by the Civil Code and real estate registry rules, with anti money laundering obligations applying to real estate intermediaries. Local requirements in Higüey include municipal operating permits and compliance with tax registration for anyone conducting business.
Sector licensing and compliance - A lawyer can determine whether your brokerage activity requires a license or registration, prepare applications, and handle communications with regulators. This is essential for securities, insurance, and customs brokerage, and helpful for freight and logistics operations.
Contracts and commissions - Brokerage relationships should be documented in clear written agreements setting out scope, fees, tail periods, exclusivity, confidentiality, and dispute resolution. A lawyer can draft or review contracts to protect your interests, and advise on enforceability under Dominican law.
Real estate closings and due diligence - For property deals in Higüey, counsel can check title certificates, liens, property taxes, zoning, and condominium rules, and coordinate proper payment methods and escrow through authorized entities.
Anti money laundering obligations - Real estate brokers, securities dealers, and other intermediaries must perform know your customer checks and report suspicious transactions. Legal advice helps design compliant onboarding forms, policies, and training.
Regulatory investigations and complaints - If you receive a notice from a regulator or a complaint from a client via Pro Consumidor, an attorney can respond, negotiate, or defend you.
Tax planning and invoicing - Brokerage commissions are taxable income and often subject to value added tax. A lawyer working with a tax professional can align your contracts and invoices with Dominican tax rules to avoid penalties.
Cross border transactions - Foreign clients and brokers face additional immigration, tax, and currency transfer considerations. Legal guidance reduces execution risk.
Dispute resolution - Commission disputes, exclusivity breaches, misrepresentation claims, and unpaid invoices can be resolved through negotiation, mediation, arbitration, or court. A lawyer can assess strategy and represent you.
Civil and Commercial Codes - Govern contracts, obligations, proof, and commission entitlement. A broker typically earns a commission when a deal is concluded thanks to the broker’s intervention, so clear causation and written terms matter.
Securities Market Law 249-17 - Requires licensing for securities brokers and dealers, sets conduct and advertising rules, and places firms under the Superintendence of the Securities Market. Non licensed persons may not solicit or intermediate securities.
Insurance Law 146-02 - Regulates insurance brokers and agents, including registration, solvency of insurers, conduct duties, and disclosure to policyholders under the Superintendence of Insurance.
Customs Law 168-21 - Modernizes customs operations and regulates customs brokers and freight intermediaries interacting with the General Directorate of Customs, including accreditation, liability, and documentation.
Anti Money Laundering Law 155-17 - Imposes due diligence, recordkeeping, and reporting obligations on financial institutions and designated non financial businesses, including real estate brokers and lawyers involved in certain transactions. Non compliance can result in fines and criminal exposure.
Consumer Protection Law 358-05 - Requires truthful advertising, clear pricing, fair contracting, and complaint handling. Pro Consumidor can investigate and sanction misleading practices by brokers dealing with consumers.
Real Estate Law 108-05 and regulations - Set the framework for title verification, lien checks, surveys, and registration in property transactions. Brokers must coordinate with notaries, surveyors, and the Real Estate Registry to ensure clean transfers.
Trusts and escrow - Law 189-11 created the framework for trusts and fiduciary services. Escrow for real estate or investment deals is commonly handled by banks or authorized fiduciary entities, not by unlicensed brokers.
Electronic Commerce Law 126-02 - Recognizes electronic contracts and digital signatures. Brokerage agreements and disclosures can be executed electronically if formalities are met.
Personal Data Protection Law 172-13 - Requires lawful processing and protection of client data gathered during onboarding and marketing.
Tax Code Law 11-92 - Governs income tax and value added tax on services. Brokerage commissions are generally taxable, and most services are subject to ITBIS. Registration with the tax authority and proper invoicing are required.
Local permits - Businesses operating in Salvaleón de Higüey typically need a municipal operating license and must register with the Chamber of Commerce and Production of La Altagracia and the tax authority for an RNC number. Ministry of Labor and social security registrations apply for employees.
Arbitration Law 489-08 - Allows parties to agree to resolve commercial disputes through arbitration seated in the Dominican Republic, which can be faster and more confidential than court proceedings.
It depends on your sector. Securities and investment brokerage requires a license and supervision. Insurance brokerage requires registration. Customs brokerage requires accreditation. Real estate brokers are not licensed under a single national regime but must comply with general contract, consumer protection, tax, and anti money laundering rules. All businesses need proper tax and municipal registrations.
Market practice for sales is often around 5 percent of the purchase price, and for rentals a commission equal to one month of rent. These are not fixed by law, can vary by property type and location, and must be agreed in writing. Commissions may be subject to value added tax.
Dominican law recognizes verbal agreements, but proof is harder and disputes are more likely. A written brokerage contract specifying scope, exclusivity, fee, payment trigger, and tail period greatly improves enforceability.
Typically when the transaction is concluded due to the broker’s effective intervention. Contracts can also define triggers such as signing a binding promise agreement or the transfer of title. Including a tail clause helps protect commissions when a deal closes shortly after an agreement expires.
Only if the broker is authorized to do so under applicable financial regulations. In real estate, escrow is generally managed by banks or authorized fiduciary companies. For securities, only licensed firms can hold client assets. Using proper escrow reduces risk of misappropriation.
Real estate brokers and other covered intermediaries must perform know your customer identification, verify source of funds for large transactions, screen for politically exposed persons, keep records, and report suspicious activities to the competent authority. A compliance manual and staff training are recommended.
Yes. Commissions are taxable income. Most services are subject to value added tax, and withholding tax may apply to payments to individuals or non residents. Register with the tax authority, issue compliant invoices, and consult a professional regarding your exact obligations.
Foreign firms can collaborate or establish a presence, but they must respect local licensing rules for regulated sectors, register for taxes if providing services in the country, and comply with immigration and labor requirements for staff. Cross border solicitation of securities without a license is prohibited.
A well drafted contract with exclusivity and tail clauses helps prevent this. If a client circumvents the broker after the broker introduced the parties, courts may still recognize entitlement to a commission depending on the evidence. Legal action or arbitration may be needed.
Disputes can be negotiated, mediated, arbitrated, or litigated in court. Timelines vary widely. Simple payment disputes may settle in weeks, while complex regulatory or multi party cases can take many months. Arbitration can offer a faster track if agreed in the contract.
Superintendence of the Securities Market - Licensing and supervision of securities brokers and fiduciary companies.
Superintendence of Insurance - Oversight of insurance companies, brokers, and agents.
General Directorate of Customs - Customs operations and accreditation of customs brokers.
General Directorate of Internal Taxes - Tax registration, invoicing, and compliance for businesses and professionals.
Pro Consumidor - National consumer protection authority for advertising, contract, and complaint matters.
Real Estate Registry and Jurisdiction - Title verification, lien certificates, and property registrations.
Chamber of Commerce and Production of La Altagracia - Commercial registry and corporate formalities for businesses operating in Higüey.
Municipality of Salvaleón de Higüey - Municipal operating licenses, signage permits, and local business requirements.
Financial Analysis Unit - Guidance on anti money laundering compliance for reporting entities.
Professional associations - Sector bodies for real estate, insurance, logistics, and investment professionals that offer best practices and training.
Define your objective - Clarify whether you need help hiring a broker, setting up a brokerage business, or resolving a dispute. Identify the sector involved and the size of the transaction.
Gather documents - Collect any proposals, listings, emails, term sheets, identification documents, corporate records, and previous agreements. For real estate, include title certificate, tax receipts, and survey plans.
Assess licensing and registration - Determine what licenses or registrations apply and whether you or your counterparty hold them. Confirm tax and municipal registrations in Higüey.
Consult a local lawyer - Choose counsel with brokerage sector experience in La Altagracia. Request a scope of work, timeline, and fee proposal. Ask about contract terms, compliance obligations, and risk mitigation.
Formalize contracts - Put brokerage terms in writing with clear fees, trigger events, exclusivity, tail period, confidentiality, data protection, and dispute resolution. Consider an arbitration clause for faster resolution.
Implement compliance - If you broker transactions, adopt know your customer procedures, data protection measures, and compliant invoicing. Train staff and document your processes.
Execute and monitor - Use proper escrow or custodial arrangements when handling funds. Keep communication and decision records. Track deadlines and regulatory filings.
Escalate early if issues arise - If a dispute or regulatory query emerges, involve your lawyer promptly to preserve rights, negotiate, or pursue remedies.
This guide provides general information and is not a substitute for legal advice. For a specific matter in Salvaleón de Higüey, consult a qualified Dominican attorney.
