The Condominium Law In The Dominican Republic Needs Major Revisions

jimmythegreek

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Dec 4, 2008
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Certain aspects of the Condominium Law needs to be revised as follows to create a sustainable three branches of governing over properties:

1. Directivas should be banned as a concept in the rules of Condominiums in the country.

2. Only Administrators (with no ownership interest in the property) should have signatory control of bank accounts to make payments.

3. Property owners or others with any direct ownership control to the property banned from signatory control of bank accounts. It is a true conflict of interest.

4. Administrators should face a mandatory 3rd party full audit of their dealings with the Condominium's financial account annually.

5. Property owners act as legislators in quorum meetings to pass resolutions according to the percentage of their ownership of the property.

As it currently stands, the Condominium law has many flaws as it is allowing minority interests to take monopoly control of properties (due to owners in this Directiva entity having signatory authority over the properties financial account) leaving certain property owners (outside the clique) with only legal demand action recourse against this form of nefarious activity.
 
Jan 7, 2016
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All well and good...taking into account the attitude toward property ownership and maintenance in the D.R., probably ain't never gonna happen. There are far to many "absentee owners" of condominiums in the tourist areas, who never even bother to return their signed proxies for Annual Meetings and Special Assessments, let alone visit their property and view it's condition or the processes in place for management and fiscal responsibility. Being a Board Member here in the D.R. means little in the way of responsibility for anything that takes-place at a particular development, as very few Board Members have any signatory authority over the finances of most condos here. We might have oversight, but no authority.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
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All well and good...taking into account the attitude toward property ownership and maintenance in the D.R., probably ain't never gonna happen. There are far to many "absentee owners" of condominiums in the tourist areas, who never even bother to return their signed proxies for Annual Meetings and Special Assessments, let alone visit their property and view it's condition or the processes in place for management and fiscal responsibility. Being a Board Member here in the D.R. means little in the way of responsibility for anything that takes-place at a particular development, as very few Board Members have any signatory authority over the finances of most condos here. We might have oversight, but no authority.

Many buildings here in DR have a Directiva of owners and members of that group have signatory authority over the bank account of the property with very little in the way of auditory controls.
 

yopote

New member
Jan 22, 2012
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hi the owner than dont pay the monthly maintenance fee

Certain aspects of the Condominium Law needs to be revised as follows to create a sustainable three branches of governing over properties:

1. Directivas should be banned as a concept in the rules of Condominiums in the country.

2. Only Administrators (with no ownership interest in the property) should have signatory control of bank accounts to make payments.

3. Property owners or others with any direct ownership control to the property banned from signatory control of bank accounts. It is a true conflict of interest.

4. Administrators should face a mandatory 3rd party full audit of their dealings with the Condominium's financial account annually.

5. Property owners act as legislators in quorum meetings to pass resolutions according to the percentage of their ownership of the property.

As it currently stands, the Condominium law has many flaws as it is allowing minority interests to take monopoly control of properties (due to owners in this Directiva entity having signatory authority over the properties financial account) leaving certain property owners (outside the clique) with only legal demand action recourse against this form of nefarious activity.

what can the administrator to do to those that don't pay maintenance fee and assesment ?

in my building there are like 6 owners that wont pay
 

windeguy

Platinum
Jul 10, 2004
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As for the OP, it is what it is, buyer beware. An owner of a condo is not going to get the laws changed in the country. One owner is not the tail that is going to wag that dog.

As for those who do not pay their fees to a legal association. We have a similar situation in our community where a number of owners don't pay an association fee. The association went to court and is getting liens attached to their properties. The problem with such liens is that the association only has a chance to collect the back payments and penalties if the property is sold. If the delinquent owners have bank accounts in the DR, it may also be possible to attach those accounts to receive payment.
 

Abuela

Bronze
May 13, 2006
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The OP posts makes some mighty big assumptions of trust here.Having an association's money accessible only by the property manager /non owner grants a nice blank check for the unscrupulous of which we have many. The same goes for audits, judging from the number of small and large business owners who have recently found themselves bilked by their accountants. Imagine the funds that could be skimmed by an administrator and his or her auditor of choice. 
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
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The OP posts makes some mighty big assumptions of trust here.Having an association's money accessible only by the property manager /non owner grants a nice blank check for the unscrupulous of which we have many. The same goes for audits, judging from the number of small and large business owners who have recently found themselves bilked by their accountants. Imagine the funds that could be skimmed by an administrator and his or her auditor of choice. 

Or you can have your funds misappropriated by property owners that have signatory control over the property's account without the proper audit controls. There is also the issue of conflicts of interest as property owners with signatory control can form monopolies over the property by buying influence with that money. There is way more to this-at least an administrator without any interest in the property would be less likely to form a monopoly control, if there were proper annual audits done by a legitimate audit firm-not some small time firm.
 

jimmythegreek

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Dec 4, 2008
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As for the OP, it is what it is, buyer beware. An owner of a condo is not going to get the laws changed in the country. One owner is not the tail that is going to wag that dog.

As for those who do not pay their fees to a legal association. We have a similar situation in our community where a number of owners don't pay an association fee. The association went to court and is getting liens attached to their properties. The problem with such liens is that the association only has a chance to collect the back payments and penalties if the property is sold. If the delinquent owners have bank accounts in the DR, it may also be possible to attach those accounts to receive payment.

Yes, but if the rules of the condominium are not adhered to, then the property owner has legal recourse against those parties involved.
 

Caonabo

LIFE IS GOOD
Sep 27, 2017
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Sadly, this is a prevalent hazard and inconvenience of investing in the RD.
 

jimmythegreek

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Dec 4, 2008
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Sadly, this is a prevalent hazard and inconvenience of investing in the RD.

I bet its a lot more prevalent than most understand. It seems to be some kind of common practice. You get a group that takes control of the property and toys with the monthly condo fee. There may even be sophisticated type of fraud in some cases where expenses are inflated and commission kick backs to pay their mantenimiento. This is why 3rd party audits by a legitimate firm are necessary no matter what to route out that nefarious conduct. They should write it in the law.
 

jimmythegreek

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Dec 4, 2008
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Demand them in the courts? Without probing to deep, may I ask how long you have been invested within the RD?

Certainly an inscription can be entered on the property, if the monthly condo fee is not paid after a certain period of time-depending on the rules established.
 

Caonabo

LIFE IS GOOD
Sep 27, 2017
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As unbelievable as it may sound, and as frustrating as it can be, I do not suggest ruffling any feathers. Doing so usually does not end with positive results.
 

jimmythegreek

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Dec 4, 2008
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As unbelievable as it may sound, and as frustrating as it can be, I do not suggest ruffling any feathers. Doing so usually does not end with positive results.

Or doing as you suggest results in your income siphoned off and property value devalued from unchecked fraud and violation of the rules.
 
Jan 7, 2016
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Several of the larger, newer condo developments in Punta Cana, Bavaro and Los Corales have owners who are grossly delinquent with their ownership fees. Some owe as much as $15,000-$20,000 in back fees and now the HOAs are going to act to get-back the fees to the associations, which have had to go into debt to keep the facilities afloat. They are filing liens, lawsuits and exceptions-to-sale on each and every property. Have to see how this works-out, considering some of the worst dead-beats are high government officials!
 

Caonabo

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Sep 27, 2017
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Or doing as you suggest results in your income siphoned off and property value devalued from unchecked fraud and violation of the rules.

This is why I had inquired as to how long you have been invested in the RD. Again, not seeking exact personal details, but just attempting to determine if you are a recent investor, or a long-term holder. The conflicts you make mention of are not new, and each new development always promises the Holy Grail of fail-safe checks and balances to insure that problems as such do not occur. And then, reality sets in.
 

Caonabo

LIFE IS GOOD
Sep 27, 2017
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Several of the larger, newer condo developments in Punta Cana, Bavaro and Los Corales have owners who are grossly delinquent with their ownership fees. Some owe as much as $15,000-$20,000 in back fees and now the HOAs are going to act to get-back the fees to the associations, which have had to go into debt to keep the facilities afloat. They are filing liens, lawsuits and exceptions-to-sale on each and every property. Have to see how this works-out, considering some of the worst dead-beats are high government officials!

2017-2007-1997-1987. Time will change, this is inevitable. Real estate schemes will as well. Just as inevitable.
 

jimmythegreek

Bronze
Dec 4, 2008
1,066
4
0
Several of the larger, newer condo developments in Punta Cana, Bavaro and Los Corales have owners who are grossly delinquent with their ownership fees. Some owe as much as $15,000-$20,000 in back fees and now the HOAs are going to act to get-back the fees to the associations, which have had to go into debt to keep the facilities afloat. They are filing liens, lawsuits and exceptions-to-sale on each and every property. Have to see how this works-out, considering some of the worst dead-beats are high government officials!

I imagine these numbers are in USD's-so $15-$20K-USD. That's a tremendous amount in delinquency. The most I have seen is max about $5K USD.
 
Jan 7, 2016
827
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I imagine these numbers are in USD's-so $15-$20K-USD. That's a tremendous amount in delinquency. The most I have seen is max about $5K USD.

All quoted figures are in U.S. Dollars, as most-all Associations in PC collect only in U.S. Dollars, due to changes in the exchange rate and the fact that a large majority of owners are U.S./Canadian Citizens.