Declaration of Unconstitutionality of Law 396-19 and Proposal for a New Law Regarding the Provision of Public Force

The Constitutional Court (CC) declared Law No. 396-19 unconstitutional, which regulated the granting of public force to execute conservatory measures and judgments concerning movable and immovable property. The decision, contained in ruling CC/0743/25, is based on a direct action of unconstitutionality filed by Genaro A. Silvestre Scroggins, Franklin José Zabala Jiménez, and the National Association of United Bailiffs (ANAU), determining that the law was enacted in violation of constitutional procedures and fundamental principles of the Dominican legal order.

Grounds for the Constitutional Decision

The Court concluded that Law 396-19 was processed as an ordinary law, even though, by its content and subject matter, it should have been approved as an organic law, in accordance with Article 112 of the Constitution and the precedent established in ruling CC/0110/13. This formal defect was decisive for declaring its unconstitutionality.

The ruling also reaffirmed that the power to execute judgments belongs exclusively to the Judiciary, pursuant to Article 149, paragraph I of the Constitution, and not to the Public Prosecutor’s Office. In this regard, the Court found it unconstitutional to assign to the Public Prosecutor’s Office the authority to authorize, direct, or suspend the use of public force in the execution of judgments or conservatory measures.

The CC specified that the control and granting of public force are part of the judicial function, and therefore must be exercised solely by competent judges or courts. The participation of the Public Prosecutor’s Office, the ruling noted, must be limited to prosecuting criminal acts that may occur during enforcement procedures, without the power to authorize or direct the use of force.

Effects and Exhortation to the National Congress

In its decision, the Constitutional Court urged the National Congress to enact a new law that corrects the identified formal unconstitutionality and aligns the regulation with constitutional parameters. To allow this legislative adjustment, the CC postponed the effects of the declaration of unconstitutionality for two years from the date of notification of the ruling.

Draft of a New Organic Law on the Granting of Public Force

In compliance with ruling CC/0743/25, a draft “Organic Law Regulating the Granting of Public Force to Carry Out Conservatory and Executory Measures” was submitted to the Senate of the Republic by Senator Cristóbal Venerado Castillo (PRM-Hato Mayor) on September 15.

This legislative initiative seeks to correct the defects identified by the Constitutional Court, ensuring that the new regulation is processed as an organic law and that the power to enforce judicial decisions rests exclusively with the Judiciary. The bill removes all references to the Public Prosecutor’s Office as the authority responsible for granting public force, replacing it with competent courts.

Essential Content of the Legislative Proposal

The bill establishes that the court that issued the decision shall be the body authorized to grant the use of public force for the execution of judgments, enforceable titles, or conservatory measures, upon request by the interested parties. The regulation applies to the execution of measures involving movable and immovable property, as well as seizures, evictions, and other actions requiring public force assistance.

The draft law complies with Article 112 of the Constitution and the precedent set by ruling CC/0110/13, reaffirming that the exercise of judicial authority belongs solely to the Judiciary. It also eliminates the “prohibition of ex officio conciliation” clause contained in Law 396-19, which had prevented members of the Public Prosecutor’s Office from promoting conciliations or mediations in cases involving requests for public force assistance.

Conclusion

The declaration of unconstitutionality of Law 396-19 and the subsequent submission of the draft organic law represent a significant step toward strengthening the separation of powers and reinforcing the Judiciary’s authority. This legal evolution seeks to ensure compliance with the constitutional principle that the enforcement of judgments is a judicial function, and that the use of public force in such processes must remain under the courts’ control, in full adherence to the Dominican constitutional order.

Pyramid schemes are a very common type of fraudulent arrangement today, disguised as highly profitable businesses. The mechanics are simple: investors are promised large returns in exchange for a minimal contribution of money or assets. In practice, however, the funds from new participants are used to pay the initial investors, without any real economic activity generating sustainable profits.

Unlike multilevel marketing systems, where there is at least a real product or service (even if profitability relies more on recruitment than on sales), pyramid schemes have no production or genuine economic value, which inevitably leads to the collapse of the scheme and the loss of money for most participants.

A Historical Gap in Dominican Legislation

For decades, the Dominican Penal Code—over 100 years in force—did not expressly include the figure of the pyramid scheme. These practices were prosecuted under the criminal offenses of fraud or breach of trust, which carried limited penalties, usually not exceeding two years in prison. This created a framework of impunity in which the legal consequences were minimal compared to the economic and social harm caused.

The New Legal Framework: Law 74-25

With the enactment of the new Penal Code (Law 74-25), specific provisions addressing pyramid schemes were introduced in Articles 240 through 242. The law defines them as a form of fraud disguised as a business scheme, whose real purpose is the recruitment of people to collect money or digital assets (cryptocurrencies, tokens, NFTs, or other digital documents with financial value), under the deceptive promise of future returns.

In this sense, the legislator clarifies that all systems in which there is no real business involving goods, services, or legitimate investments—properly authorized and verifiable according to current economic standards—will be considered pyramid schemes.

Penalties

The new Penal Code establishes harsher penalties proportional to the seriousness of the offense:

• Basic penalty: Major imprisonment from 5 to 10 years and a fine of 1 to 20 times the amount involved in the offense.

• Aggravated penalty: Major imprisonment from 10 to 20 years and a fine of 1 to 20 times the amount involved in the offense, in the following cases:

  • When the perpetrator is a public official or falsely claims to have authority.

  • If traditional or digital media (press, television, social networks, etc.) are used to promote or disseminate the scheme.

  • When the victims are people in vulnerable situations due to age, sex, pregnancy, or other special conditions.

Recommendations to Avoid Falling Victim to These Schemes

At Alburquerque Abogados, we recommend that citizens and our clients take preventive precautions to identify and avoid potential fraud:

• Be skeptical of promises of quick and disproportionate profits. Legitimate businesses involve risks and reasonable returns.

• Verify the existence of a real product or service. If income depends almost exclusively on recruiting new members, that’s a red flag.

• Confirm the company’s legality. Check if it is registered with the competent authorities and holds the necessary authorizations.

• Investigate backgrounds. Look up information on the promoters and check for official complaints or warnings.

• Avoid investing in schemes based exclusively on digital assets whose profitability is not backed by legitimate operations.

• Seek advice from legal and financial professionals before committing your money to projects without clear support.

Pyramid schemes pose a persistent threat to investors and the broader economy. The tightening of penalties in the new Dominican Penal Code is an important step toward protecting citizens. However, the first line of defense will always be the prevention and due diligence of those who choose to invest.

At Alburquerque Abogados, we leverage our legal expertise to guide and support our clients in evaluating safe investments and defending their rights against potential fraud.

The digital transformation has also reached the notarial function in the Dominican Republic. With the approval of Resolution No. 50-2024, the Supreme Court of Justice has implemented the Regulation for the Use of Digital Documents and Signatures in the Exercise of Notarial Functions, which will come into effect within a maximum of twelve months from its publication. This regulatory framework represents a landmark change in the preparation, preservation, and validation of notarial acts, ensuring legal certainty in a digital environment.

Legal Framework and Objectives

The regulation is based on Law 126-02 on Electronic Commerce and Law 140-15 on the Notarial Profession, which recognize the legal validity of digital documents and signatures. Its primary purpose is to regulate the use of secure digital signatures in notarial documents, equating their evidentiary value to that of paper instruments.

Thus, notaries will be able to prepare deeds, contracts, powers of attorney, and other instruments in digital format, while safeguarding the guarantees of authenticity, integrity, and confidentiality.

Guiding Principles

The regulation rests on fundamental principles aimed at balancing innovation with legal certainty:

• Optionality: the notary may choose between digital or physical documents.

• Integrity and authenticity: secure and certified digital signatures are required.

• Protection of personal data: obligation to safeguard the privacy of the parties.

• Traceability and transparency: each notarial act must be subject to tracking.

• Standardization: unified criteria for digital notarial practice.

Digital Notarial Documents

Digital notarial documents enjoy full legal validity, provided they are signed with a secure digital signature recognized by Indotel.

The regulation allows parties to appear either in person or remotely, with identity verification through electronic evidence. In addition, notaries may issue authentic digital copies with the same legal value as those issued on paper.

The Electronic Notarial Protocol

One of the most significant innovations is the creation of the electronic notarial protocol. This replaces the traditional physical protocol and will be kept by the notary but deposited in a national electronic repository administered by the Dominican Notaries Association.

In this way, the preservation, confidentiality, and immutability of the documents are ensured, with the possibility of recovery in the event of loss or damage.

Management and Oversight

The administration of the digital system will be entrusted to a Notarial Management Council, composed of:

• The President of the Supreme Court of Justice (who presides over it).

• The Attorney General of the Republic.

• The President of the Dominican Notaries Association (serving as secretary).

This body will regulate the use of the digital platform and oversee the proper implementation of technological tools.

Furthermore, the Supreme Court of Justice, the Public Prosecutor’s Office, and the General Directorate of Internal Revenue will retain authority to inspect digital notarial documents.

Benefits of the Digital Signature in Notarial Practice

The regulation not only modernizes notarial practice but also offers significant advantages:

• Streamlined procedures and reduced processing times.

• Enhanced security and transparency in the execution of acts.

• Remote accessibility, fostering digital inclusion.

• Reduced paper use, with a positive environmental impact.

• Strengthening of e-commerce and legal certainty in business transactions.

Conclusion

The incorporation of secure digital signatures in notarial practice marks a turning point in the Dominican legal system. This regulation not only addresses the need for modernization but also positions the country in line with international trends in the digitalization of legal services.

For citizens and businesses, this means greater efficiency and confidence in the formalization of legal acts. For notaries, it represents both a challenge and an opportunity to update their practice, thereby reinforcing their role as guarantors of public faith in the digital era.

Introduction

In recent years, the rental of residential and commercial properties has become a key element in the urban development of the Dominican Republic. However, this widespread practice continues to be governed by regulations that date back more than five (5) decades, creating a growing disconnect between the law and the realities of today’s real estate market. In response to this situation, on August 19, 2024, a bill was submitted to the National Congress that promises to significantly transform the rental landscape in the Dominican Republic. This initiative aims to update and modernize a legal framework that has long been outdated, affecting both landlords and tenants.

At Alburquerque Abogados, we understand the importance of this bill and aim to explain it clearly and accessibly, highlighting its key points, the potential impact on the real estate market, and how it promotes a balance between the rights of the parties and the broader social interest.

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Purpose and Justification of the Bill

The main objective of the law is to establish a modern regulatory framework governing the relationships between landlords and tenants, ensuring greater legal certainty, contractual clarity, and effective conflict resolution mechanisms. The bill seeks to:

• Establish clear rules regarding the rights and obligations of both parties.

• Encourage investment in residential and commercial rentals.

• Streamline legal processes related to rentals through specialized courts.

• Promote transparency and reduce unnecessary conflicts.

The proposal responds to the current context of urbanization, housing shortages, and the growing demand for residential and commercial spaces—all within a fragmented and outdated legal system that hinders trust and investment.

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Scope and Exclusions

This law will apply to all rental contracts for real estate intended for residential, commercial, or other lawful purposes. However, it explicitly excludes certain cases regulated by specific or distinct regulations, such as:

• Rural farms and land

• Officially registered lodging establishments

• Free zones and temporary commercial spaces (fairs, markets)

• Rentals for periods shorter than thirty (30) days

• State-owned properties and parking spaces

These exclusions ensure that the law focuses on traditional leasing without interfering with other special regimes.

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Formalization of Rental Agreements

Rental contracts must be in writing and include basic information such as the identity of the parties, a description of the property, rental price, payment terms, duration, and the purpose of the lease. It also allows the inclusion of compliance insurance or special agreements, such as real estate leasing. This formalization reduces ambiguity, protects both parties, and facilitates dispute resolution.

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Rent, Guarantees, and Deposits

The parties may freely agree on the rental price, provided that the amount, payment location, and method are clearly stated. Tenants have the right to receive a payment receipt unless otherwise agreed. The rent may be adjusted annually, with a maximum increase of ten (10%) percent of the previous amount, based on inflation data from the Central Bank. Landlords may require up to three (3) months’ rent as a deposit, either in cash (to be deposited in the Agricultural Bank) or in the form of a surety. The contract and deposit must be registered to ensure traceability and legal certainty. In case of disputes, the specialized Justice of the Peace Court will resolve the matter.

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Grounds for Termination and Subrogation

A lease may be terminated upon expiration, improper use of the property, destruction of the property, or serious breach of contract. If neither party expresses the intent to end the lease at its expiration, the agreement is automatically extended under the same conditions. In the event of the tenant’s death, the contract may continue with direct relatives or cohabitants, provided they demonstrate the ability to pay, thereby ensuring family stability and legal continuity without requiring a new agreement.

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Obligations of the Parties

Landlord’s Obligations:

Landlords must deliver the property in proper and habitable condition, carry out necessary structural repairs, and ensure access to basic services. Discriminatory conditions based on ethnicity, religion, sexual orientation, nationality, or other human rights-protected categories are strictly prohibited.

Tenant’s Obligations:

Tenants are required to maintain the property, make minor repairs, respect the agreed-upon use of the property, refrain from making modifications without permission, and return the property in good condition at the end of the contract. Subleasing is prohibited without the landlord’s written consent.

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Eviction Procedures and Special Jurisdiction

Eviction procedures will include a mandatory preliminary conciliation stage before a judicial officer. If no agreement is reached, the case may proceed before a specialized Justice of the Peace Court for rental and eviction matters.

This court will handle disputes related to non-payment, contract termination, contractual violations, and deposit-related issues. A maximum term of thirty (30) business days is established for issuing a ruling, and the use of public force is permitted to enforce judicial decisions.

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Rulings, Appeals, and Role of Judicial Police

Eviction rulings will be immediately enforceable. In the event of an appeal, execution will only be suspended if a financial guarantee equivalent to the claimed amount is deposited.

Additionally, the Central Directorate of Judicial Protection Police is established to protect judges, parties, and property during the enforcement of eviction rulings, seizures, or other measures. This reinforces the enforcement of the law within a framework of legality, safety, and order.

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Conclusion

The proposed Rental Law represents a major step forward in modernizing the legal framework governing real estate in the Dominican Republic. This legislative initiative not only aims to put an end to outdated and fragmented regulations that have long generated insecurity and informality in landlord-tenant relations, but also seeks to establish a coherent, functional legal structure aligned with the constitutional principles of fairness, legality, and decent access to housing.

Passing this law would substantially strengthen legal certainty in leasing operations, by promoting clear rules, efficient procedures, and accessible, rights-based dispute resolution mechanisms. By introducing new obligations for both parties, limiting arbitrary increases, formalizing written contracts, and guaranteeing more orderly and specialized judicial processes, it creates a more favorable environment for both property owners looking to invest and individuals seeking a place to live or start a business.

At Alburquerque Abogados, we welcome this legislative proposal with optimism and reaffirm our commitment to guide our clients—landlords and tenants alike—through a clear understanding and proper implementation of its provisions. We will closely follow its progress in the National Congress and stand ready to provide expert legal assistance throughout any contractual, judicial, or administrative process this new law may involve.