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Free Guide to Hiring a Real Estate Lawyer
Brokerage in the Dominican Republic, commonly referred to as corretaje or intermediación, is the professional activity of connecting clients with products, services, or counterparties in exchange for a commission. In Salvaleón de Higüey, the economic heart of La Altagracia province and gateway to Punta Cana and Bávaro, brokerage most often appears in real estate transactions, insurance placement, tourism and hospitality services, and freight or customs logistics. Securities brokerage is also present but is tightly regulated at the national level. There is no single all-purpose brokerage statute. Instead, several national laws govern depending on the sector, complemented by the Civil Code and the Commercial Code on contracts and commercial practices, and by local business-licensing requirements administered by the municipal government in Higüey.
In real estate, brokers connect buyers, sellers, landlords, tenants, and developers, and their commission rights are defined by contract, by the general rules of agency and commercial intermediation, and by consumer-protection and anti-money-laundering rules. In insurance, brokers must be licensed and supervised. In securities, only licensed broker-dealers can intermediate. In customs, only registered customs brokers may act before customs authorities. Across all sectors, contracts, taxation, advertising, data protection, and municipal licensing requirements play crucial roles in day-to-day compliance.
You may need a lawyer to draft, review, and negotiate brokerage agreements that clearly define scope, exclusivity, commission triggers, payment terms, duration, termination, and dispute-resolution clauses. Clear contracts reduce the risk of unpaid commissions and conflicts over who gets paid when multiple brokers are involved.
Legal help is often required to structure real estate projects and pre-construction sales marketed by brokers, including verification of a project’s permits, land title status under the Dominican real estate registry, and the existence and terms of any trust or fideicomiso used to protect buyer funds. A lawyer can also vet advertising materials for compliance with consumer law.
Regulatory compliance is a frequent driver. Insurance, securities, and customs brokerage are licensed activities with sector-specific rules and audits. Real estate brokers and many other intermediaries are subject to anti-money-laundering obligations, know-your-customer duties, record-keeping, and reporting of suspicious transactions. A lawyer helps set up policies and training and respond to inspections.
Tax planning and compliance benefit from legal advice. Commissions are generally subject to value added tax known as ITBIS and to income tax. Businesses must register with the tax authority, issue compliant electronic invoices, and manage withholdings and municipal taxes. Proper structuring can reduce errors and penalties.
If a dispute arises over unpaid commissions, exclusivity breaches, misrepresentation, or alleged consumer-law violations, counsel can assess evidence, negotiate settlement, or pursue claims in the courts of La Altagracia or through arbitration. Lawyers also help foreign investors and non-resident brokers navigate local rules, language requirements, and cross-border contracting.
Contracts and commercial practice are governed by the Dominican Civil Code and Commercial Code. Brokerage agreements and commission arrangements are valid under these codes. Although notarization is not required for brokerage contracts, written, signed agreements are strongly recommended. Spanish-language versions will control in local courts, and bilingual drafting is common when foreign clients are involved.
Real estate brokerage engages several key laws. Law 108-05 on Real Estate Registration governs title, liens, and property transfers, and its regulations define procedures at the Jurisdicción Inmobiliaria. Law 189-11 on the Development of the Mortgage Market and Trusts enables real estate trusts or fideicomisos often used to handle pre-construction sales and investor protections; brokers should confirm the existence and terms of any trust before marketing units. Law 155-17 on Anti-Money Laundering and Counter-Terrorist Financing designates real estate intermediaries as obliged entities that must identify clients, perform risk-based due diligence, keep records, and report suspicious transactions to the financial intelligence unit. Law 358-05 on Consumer Protection requires truthful advertising and fair contract terms and prohibits abusive clauses. In practice, commission is typically earned when the broker’s efforts are the efficient cause of the transaction and the principal accepts a ready, willing, and able counterparty on agreed terms, but parties often specify their own commission triggers and protection periods.
Securities brokerage is heavily regulated nationally. Law 249-17 on the Securities Market and its regulations require any person or company that intermediates in publicly offered securities to be authorized as a broker-dealer known as a puesto de bolsa and to be supervised by the Superintendency of the Securities Market. Unlicensed securities intermediation is prohibited.
Insurance brokerage is regulated by Law 146-02 on Insurance and Bonds and supervised by the Superintendency of Insurance. Insurance brokers must be licensed, comply with capital and competency standards, and follow disclosure and conduct-of-business rules that protect policyholders.
Customs brokerage is regulated by the General Customs Law 168-21 and the customs authority. Only registered customs brokers and authorized agents may represent importers and exporters before customs. Compliance failures can trigger fines or suspension.
Anti-money-laundering compliance applies across multiple brokerage contexts. Law 155-17 requires customer identification, beneficial-owner verification, enhanced due diligence for higher risk clients such as politically exposed persons, record retention, and timely suspicious transaction reports. Real estate brokers, dealers in high-value goods, and certain service providers are within scope in addition to financial intermediaries.
Data protection obligations arise when handling client data. Law 172-13 on Personal Data Protection sets duties for lawful processing, consent, data security, and handling client access or correction requests. Brokers that market to international clients should align their data practices accordingly.
Consumer protection and advertising require accuracy and transparency. Under Law 358-05, material information such as price, key features, restrictions, and fees must be clear, and offers must match the actual product. In real estate and tourism, photographs, floor plans, amenities, and delivery timelines should not be misleading.
Business formation and licensing are local priorities in Higüey. To operate legally, most brokerage businesses must register with the local Chamber of Commerce of La Altagracia for a commercial registry certificate, obtain a municipal operating license or patente from the Ayuntamiento de Salvaleón de Higüey, register for taxes with the tax authority to obtain an RNC number, and comply with electronic invoicing requirements. The municipal tax is typically calculated on gross revenues according to local schedules. Keep corporate, tax, and municipal registrations current.
Taxation of brokerage commissions typically includes ITBIS at the standard rate and income tax on net profits. Dominican companies must issue compliant electronic tax receipts known as comprobantes fiscales electrónicos and follow retention rules when paying certain commissions, especially to individuals or non-residents. A tax professional can confirm applicable rates and treaty relief.
Employment and contractor arrangements are governed by the Labor Code. Misclassifying full-time agents as independent contractors can create liabilities for severance, social security, and benefits. Non-compete and non-solicit clauses are enforceable only if reasonable in scope, duration, and geography.
Exclusive representation of foreign manufacturers or brands requires care. Law 173 on agents and distributors grants strong protections to certain exclusive distributors and agents. If a brokerage arrangement functions as an exclusive distribution or agency, termination may trigger indemnities. Legal structuring and precise drafting help avoid unintended consequences.
There is no unified national real estate broker license like in some countries, but brokers must comply with general business registration, municipal licensing, tax, anti-money-laundering, and consumer-protection requirements. Sector associations promote standards and training. Some specialized brokerage activities such as insurance, securities, and customs do require formal licenses.
It depends on your contract. Many agreements state that commission is earned when the broker introduces a ready, willing, and able party on agreed terms and a binding agreement is signed, even if closing is delayed. Others condition payment on closing. To avoid disputes, define the commission trigger, timing, and a protection period for post-termination deals with prospects introduced by the broker.
Yes, unless an exclusive agreement is signed. In an exclusive listing, the principal agrees to work through a single broker during the term and to pay commission even if the principal finds the buyer or tenant directly. The exclusivity scope, duration, and penalties must be clear and reasonable to be enforceable.
Yes. Real estate brokers are obliged entities under anti-money-laundering law. They must identify and verify clients and beneficial owners, apply enhanced checks for higher risk profiles, keep records, and report suspicious transactions. Firms should adopt written policies, train staff, and document risk assessments.
Commissions for brokerage services provided in the Dominican Republic are generally subject to ITBIS and income tax. Businesses must issue compliant electronic tax receipts and may be subject to withholding when paying or receiving commissions depending on the counterparty and the nature of the service. Municipal taxes also apply to local business operations in Higüey.
Plan your corporate structure and register the company, obtain a commercial registry certificate with the Chamber of Commerce of La Altagracia, register for taxes to obtain an RNC, implement electronic invoicing, secure a municipal operating license from the Ayuntamiento, draft standard contracts and compliance policies, and, if applicable, obtain sector licenses for insurance, securities, or customs activities. Set up AML and data-protection programs before onboarding clients.
Foreign ownership of companies is generally allowed. Foreign brokers may operate through a locally registered entity and must meet the same municipal, tax, and compliance rules as local firms. Certain regulated sectors require local licensing and fit-and-proper approvals. Contracts should be in Spanish or bilingual to facilitate enforcement.
Start by reviewing the brokerage agreement and collecting evidence such as emails, visit logs, messaging records, and draft contracts. Many disputes settle through negotiation or mediation, including services offered by local chambers of commerce. Failing settlement, claims may be filed in the courts of La Altagracia or resolved by arbitration if your contract includes an arbitration clause.
Advertising must be truthful, clear, and not misleading under consumer-protection law. State prices and material terms accurately, avoid exaggerating amenities or delivery timelines, and keep records supporting claims. If using client data for marketing, comply with personal data laws and obtain proper consent.
If your arrangement gives exclusive territory, long-term representation, and control over a brand’s sales, it may be characterized as an agency or distribution relationship protected by Law 173, which can impose termination indemnities. Careful drafting that reflects true brokerage functions, with limited authority and no transfer of distribution risk, helps avoid unintended classification.
Ayuntamiento de Salvaleón de Higüey for municipal operating licenses, local taxes, and zoning inquiries.
Cámara de Comercio y Producción de La Altagracia for company registration, commercial certificates, and access to alternative dispute resolution services.
Dirección General de Impuestos Internos for RNC tax registration, ITBIS, electronic invoicing, and withholding rules.
Jurisdicción Inmobiliaria and Registro Inmobiliario for land title, surveys, and registration matters related to real estate deals.
Superintendencia del Mercado de Valores for licensing and oversight of securities intermediaries.
Superintendencia de Seguros for licensing and supervision of insurance brokers and agents.
Dirección General de Aduanas for customs broker registration and customs compliance.
Unidad de Análisis Financiero for anti-money-laundering reporting standards and guidance applicable to obliged entities.
Instituto Nacional de Protección de los Derechos del Consumidor known as Pro Consumidor for guidance and complaints regarding advertising and consumer contracts.
Professional associations in real estate and insurance that offer training, ethical codes, and market standards relevant to brokerage practices.
Clarify the exact brokerage activity you intend to undertake in Higüey, such as real estate, insurance, customs, or securities, because each triggers different legal requirements and approvals. Prepare a summary of your business model, target clients, fee structure, and any exclusivity or cross-border elements.
Schedule a consultation with a lawyer experienced in commercial and regulatory matters in La Altagracia to map required registrations, licenses, and compliance frameworks. Bring identity documents, corporate records if already formed, draft agreements, and marketing materials for review.
Set up your legal and tax footprint by registering the company, obtaining an RNC, implementing electronic invoicing, and securing a municipal operating license. Establish an accounting process for ITBIS, income tax, withholdings, and municipal taxes.
Adopt written policies for anti-money-laundering, data protection, and advertising approvals. Train staff on client onboarding, document retention, and red flags. Align your standard contracts with Dominican law and prepare bilingual versions if you serve international clients.
Create a dispute-prevention plan that includes clear communication templates, confirmation emails for material terms, and procedures for handling competing broker claims. Include mediation or arbitration clauses where appropriate and identify a forum in La Altagracia.
Review and update compliance and contracts annually or when laws change, especially in areas such as electronic invoicing, AML requirements, and sector licensing. Acting early and maintaining good records will reduce risk and protect your commissions.
