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A new law introduced to the Dominican Republic is helping the country's housing market to develop, according to one expert.
Writing in The Metropolitan Corporate Council , lawyer Luis Pellerano highlights the legislation as a key step for investors, boosting the mortgage market as well as housing stock.
The law defines several terms, such as settlor, trust and beneficiar, and allows the creation of trusts for both real estate investment and development. It also allows trusts to issue securities such as mortgage notes, bonds and certificates to raise funds for mortgage financing for Dominican housing.
"The new Dominican law also contains special provisions relating to the development of low-cost housing through public-private partnerships, which the Dominican government believes can help solve the country's housing problems," adds Pellerano.
It also introduces a foreclosure procedure for creditors in the country.
The legislation will "significantly enhance the country's housing and construction industries while offering institutional investors an important investment opportunity", concludes Pellerano. "This would appear to be a win-win for all involved."