Condominiums in the Dominican Republic: A detailed look at Law 5038 and its amendments for a secure property.
Condominium in practice is a relevant topic in the Dominican Republic and is regulated by Law No. 5038 of November 21, 1958, as amended by Law 108-05 of the Real Estate Registry and its regulations. As the real estate market grows in the country, it is important to take into account certain aspects related to condominiums that are of interest to builders. In this summary, as a legal specialist, I will highlight 13 key points regarding the constitution and requirements of condominiums in the Dominican Republic.
1. Law 5038 and Law 108-05 establish the legal and technical requirements for the constitution of the condominium regime.
2. Article 105 of the General Title Registration Regulations defines the condominium regime as the right by virtue of which different parts of a property may be exclusively owned by one or more persons, being undivided co-owners of the common parts.
3. The condominium regime applies to buildings constructed vertically, horizontally or mixed, where an inseparable relationship is established between areas of exclusive property and common areas.
4. In order to constitute a condominium regime, a registered property, functional autonomy of the exclusive property units and the coexistence of exclusive properties with the undivided co-ownership of the common parts are required.
5. The constitution of the condominium regime is only allowed on a registered real estate.
6. In cases of projects composed of several buildings separated by streets or public roads, independent condominiums must be constituted due to the restriction of being constituted on a single registered property.
7. The use of the common areas of a condominium may be prohibited for the owners of another condominium, even if both are part of the same project.
8. The fees of each condominium are independent, which makes it difficult to distribute the common charges proportionally among the owners of both condominiums who use the common areas indistinctly.
9. Currently, the registration of an easement in the Registry of Titles to allow the use of common areas of a condominium by another condominium is not allowed.
10. It is suggested that the Condominium Law be amended to relax the adjoining requirement and allow the constitution of condominiums in registered properties separated by a street, but which respond to a single condominium project.
11. The figure of the condominium of condominiums, present in other jurisdictions such as Costa Rica, could be an option for the development of mixed tourism-real estate projects, allowing a better distribution of the common charges between the original condominium and its subcondominiums.
12. It is proposed to consider the figure of the condohotel administrator, granting him/her powers to administer not only the common areas, but also the private sectors destined to the hotel exploitation of the condominium.
13. Developers and builders must take into account these difficulties when designing and selling a condominium project.
Finally, condominiums are a relevant issue in the Dominican Republic and are regulated by Law No. 5038 and Law 108-05, which establish the legal and technical requirements for their constitution. It is important for builders and developers to consider the aspects highlighted in this summary on the constitution and requirements of condominiums in the country.
These key points range from the definition of the condominium regime to the functional autonomy of freehold units and coexistence with co-ownership of common parts. In addition, restrictions and difficulties associated with the use of common areas, independent fees for each condominium and the need to modify certain requirements to adapt to the reality of the real estate market are highlighted.
Possible solutions are suggested, such as the relaxation of the adjoining requirement and the implementation of the figure of the condominium of condominiums, which would allow a more equitable distribution of the common charges in mixed projects. It is also proposed to consider the figure of the condohotel administrator for the management of both common areas and private sectors for hotel operations.
It is essential that builders and developers consider these relevant aspects when designing and selling condominium projects, as the real estate market continues to grow in the country. From the functional autonomy of the exclusive property units to the coexistence with the co-ownership of the common parts, it is necessary to comply with the established legal requirements.
If you have any questions or need additional advice on this topic or any other legal related matter, please do not hesitate to contact me. I am here to help you and provide you with the necessary guidance on the matter.
Virgilio Santana Ripoll