DOMINICAN REPUBLIC Law and Practice Contributed by: Alfredo Guzmán Saladín, Fabio Guzmán Ariza and Julio Brea Guzmán, Guzmán Ariza
6.22 Termination by a Third Party No third parties are allowed to initiate the termi - nation process of a lease agreement. However, the government can initiate an expropriation process against the property, by following the due process. 6.23 Remedies/Damages for Breach The most common form of security the landlord holds against the tenant in the event of failure to meet its obligations is the deposit made by the tenant in advance of the commencement of the lease. The provision of a third-party guarantor can also be agreed between the parties, and/or that failure to comply with any of the obligations agreed upon shall result in the termination of the agreement. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most commonly used structures are: • the fixed price system, which gives the owner of the project a comprehensive idea of the final cost of the project, establishing a fixed fee for the construction process; and • the construction management system, in which the project owner only pays the con - tractor a construction fee and the owner covers the cost of construction materials and labour. 7.2 Assigning Responsibility for the Design and Construction of a Project The parties are free to establish the conditions that govern their relationship, allowing any scheme to be developed for assigning responsi - bility for the design and construction of a project,
the landlord once the property is received at the end or termination of the lease. The landlord has the obligation to deposit this money, with a copy of the lease agreement and other documentation, at the Agricultural Bank. Legal fees and other applicable fees are usually paid by each party. 6.21 Forced Eviction Tenants can sue landlords for the specific per - formance of any obligation assumed by the landlord in the lease, plus damages. The land - lord, likewise, can sue for specific performance and damages, as well as for eviction; remedies available to landlords do not differ depending on whether the nature of the lease is commercial or residential. The customary procedure to evict a defaulting tenant is to sue in court. The process is very time-consuming for two reasons: • before suing, the landlord is required in many cases to go through an administrative pro - cedure that usually grants the tenant grace periods of six months or more; and • eviction orders by lower courts are subject to appeals to two higher courts, which length - ens the process to three or more years if the tenant retains the services of a savvy lawyer; evictions cannot be enforced while appeals are pending. General contract law applies to the lease but is limited by various statutes that protect the tenants. For example, if there is no escalating clause for rent in a lease, the landlord cannot raise it unilaterally without undertaking a lengthy administrative procedure.
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