Congress approves new Rent and Eviction Law; passes to the Executive Branch

SANTO DOMINGO.– The Chamber of Deputies approved this Tuesday in a single reading the modifications introduced by the Senate to the Real Estate Rental and Eviction Law project, turning the legislative piece into a norm after its passage through both chambers. Now, the initiative will be sent to the Executive Branch for its promulgation.

The project, authored by the president of the Lower Chamber, Alfredo Pacheco, seeks to establish a regulatory framework for lease agreements for homes, commercial premises, and spaces occupied by non-profit associations.

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Among the most important points of the law are provisions on rent price adjustments, limits on the amount of deposits required, contract renewal, and measures in case of abandonment of the property. According to article 8, any increase in rent must be agreed upon by both parties and may not exceed 10 % of the current amount. Article 10 stipulates that non-payment by the tenant may lead to the suspension of the contract, while Article 11 grants the possibility for a close family member, such as the tenant’s partner or child, to assume the contract in the event of death.

During the session, the latest modifications proposed by senators of the ruling Modern Revolutionary Party (PRM) were also accepted. Among them, that the deposit does not exceed the equivalent of two months’ rent, instead of the three originally proposed by the Chamber of Deputies.

In addition, a clause was incorporated that allows the parties to opt for arbitration to resolve disputes in rentals for commercial or institutional purposes, and it was established that judgments in rental matters must be issued within a maximum period of 30 days once the file is in a ruling state. The law was reintroduced during the current extraordinary legislature after failing to reach consensus in two previous periods. With its definitive approval, greater protection and clarity are expected for both owners and tenants in the country. In the same session, other initiatives of national impact were also approved, such as the projects for the creation of the Ministry of Justice, the Law on Oversight of the National Congress, and the Family Property Law.