BLOG: New Regulations for Agents as we Should Have
By Nabil Ramia and El Inmobiliario
The regulation of sales agents in the real estate market is crucial for fostering transparency and trust, which are fundamental elements in any business transaction. Without proper regulation, the sector is vulnerable to informal practices and fraudulent activities, which can erode consumer confidence and destabilize the market. By implementing clear standards and licensing requirements, regulatory bodies ensure that all agents operate within a framework of ethical practices and accountability. This not only protects consumers from unscrupulous actors but also promotes a level playing field where legitimate agents can thrive, ultimately leading to a more robust and reliable real estate market.
Moreover, regulation helps to professionalize the real estate industry by establishing criteria for education, experience, and conduct. This professionalization means that agents are better equipped with the knowledge and skills necessary to navigate the complexities of the market, provide accurate information, and deliver high-quality service to clients. It also ensures that there are mechanisms for addressing grievances and resolving disputes, which enhances the overall consumer experience. In turn, a well-regulated market attracts investment, as both domestic and international investors gain confidence in the stability and integrity of the real estate environment. Thus, regulation not only benefits individual transactions but also contributes to the long-term growth and sustainability of the real estate sector as a whole.
Because of this, the potential implementation of the Dominican real estate agent regulation bill represents the first step towards addressing informality in the sector.
The director of the Association of Real Estate Agents and Companies (AEI), Architect Osman González, believes this is a process that takes time and the effort of all involved parties.
Informality and duality in the real estate sector are significant weaknesses, as many people practice this profession in a less than transparent manner.
The legislation will help clear the path, strengthening the sector and building the essential trust needed for any business transaction.
"Without trust, there are no sales or business. As the country generates and transmits trust, similar to what happens in tourism, the path will undoubtedly become clearer," he stated.
The expert emphasizes the need to start by regulating the largest companies, then the medium-sized ones, and finally the independents.
"Although regulation will not bring immediate change, it is essential to combat the prevalent informality in the sector. The implementation of licenses and regulations will not solve the problem overnight," he explains.
Additionally, he highlights that the regulation of real estate agents will bring benefits such as guiding the majority of people, especially promoters and developers. This will allow the Dominican Association of Home Builders and Developers (Acoprovi) and other entities to work only with duly regulated agents.
