Digitization in the real estate sector: digital contracts, electronic signatures, and trust platforms
Author: Elaine De León
Digital transformation has redefined the way legal and commercial transactions are carried out, and the Dominican real estate sector cannot remain oblivious to this evolution.
Entrepreneurs and investors value speed, efficiency, and legal certainty when undertaking real estate projects in the Dominican Republic.
Implementing digital contracts and electronic signatures in this sector’s operations offers various benefits, such as speeding up the closing of transactions, facilitating remote operations, and reducing operating costs.
Electronic signatures
The Law No. 126-02 on Electronic Commerce, Documents, and Digital Signatures establishes that electronic documents have the same legal value as physical documents, provided they meet the established requirements.
This law recognizes three types of electronic signatures:
a) Simple electronic signature: Does not require advanced verification mechanisms. It is useful for informal agreements, but its level of legal certainty is limited.
b) Advanced electronic signature: Incorporates authentication mechanisms such as tokens or biometrics. It is used in preliminary contracts and lease agreements.
c) Certified digital signature: Issued by an authorized certification authority, it guarantees the identity of the signer and the integrity of the document. It is fully valid for sales contracts, trusts, and other acts that require maximum legal certainty.
These tools allow contracts to be formalized without physical presence, provided that certified digital signatures are used. However, there are still limitations in the Real Estate Registry, where the physical presentation of the document is usually required for registration.
Benefits of digitization
• Streamlines contractual processes, allowing documents to be signed from anywhere in a matter of minutes.
• Facilitates the participation of international investors, eliminating geographical barriers.
• Reduces operating costs by minimizing notarial procedures and the transport of physical documents.
• Promotes sustainable practices by reducing paper use.
• Reinforces legal certainty, offering protection against contractual disputes.
Digital platforms for trusts
The Law No. 189-11 for the Development of the Mortgage Market and Trust is essential for structuring real estate trusts in the country. In recent years, digitization has begun to transform this sector through platforms such as Fidunet, which allow:
a) Remote connection between buyers and developers.
b) Digital signing of trust agreements.
c) Efficient management of real estate projects.
The integration of these digital tools with the current legal framework improves transparency, facilitates asset management, and protects the rights of beneficiaries.
For developers and buyers, this platform represents a secure and modern solution that optimizes project execution.
Challenges to overcome
• There are still no specific regulations governing the registration of digital contracts in the Real Estate Registry without the need for physical versions, which creates legal uncertainty.
• Resistance to change persists among some professionals in the sector due to a lack of training in digital tools and unfamiliarity with the current legal framework.
• Technological infrastructure is limited in certain regions of the Dominican Republic, which hinders the effective implementation of digital solutions.
• Cybersecurity is a critical issue. It is essential to have robust encryption and authentication systems in place to protect sensitive information and prevent fraud.
Efficiency and agility in real estate projects
The digitization of the real estate sector in the Dominican Republic is not an optional trend, but an urgent necessity. The implementation of digital contracts and the use of electronic signatures optimize processes, strengthen legal certainty, and open the Dominican market to a global audience.
Integrating digital tools into trusts and real estate transactions modernizes this sector, improves competitiveness, and ensures transparency. To achieve this, a joint commitment between Dominican authorities, legal operators, and market players is necessary.
It is essential to adapt legal practices to the fast pace of the digital world without compromising the protection of rights or the legal security of transactions.
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