REGISTRATION OF RENT OF REAL ESTATE PROPERTY IN THE DOMINICAN REPUBLIC
The rental of real estate is a very common practice in the Dominican Republic, which, despite having legislation for its regulation, is constantly conditioned by a detrimental informality to the renter and to the tenant as well.
One of the main vices in this practice is the non-registration of the contract in the Agricultural Bank, required by law 17-88, along of the sum of money delivered as deposit by the tenant.
This money amount must correspond to the equivalent of at least one (1) month’s rent in contracts up to one year; of two (2) months of rent in the contracts of two years or of a year and a half and onwards; and three (3) months of rent in contracts of three years or more, or two and a half years onwards.
Whether this amount equals the parameters already indicated, or that include advances of greater amount, there will always be an obligation on the property owner to make the deposit in the Agricultural Bank along of the original rental contract in the fifteen (15) days of its validity. In case of a breach of this term, the owner will pay a surcharge of ten percent (10%) for each month of delay, without exceeding in any case fifty percent (50%) of the amount to be deposited, being this added to the initial amount and in favor of the tenant.
This registration is of great importance, due to the regulatory role of this institution in cases such as denial of the owner to accept the rent payment, that could be deposited in the Agricultural Bank, as a real payment offer, free of any contribution or charge.
The Agricultural Bank must also pay the tenants an interest for the amounts received on deposit, at a rate similar to that established for savings accounts, interest that will accrue annually to the deposit.