If you are considering buying pre-construction in this market, the builder should have been approved for promotion on FBS FLEX and he should have an offer contract following these statutes for your protection, and more if you can negotiate them.
Here is a translation for you to read. For property advice, seek the counsel of a qualified attorney and your choice of real estate agent.
Chapter VIII – OF OPERATIONS WITH REAL ESTATE
ARTICLE 73. – Acts related to real estate will only be subject to this law, when the providers are fractionators, builders, developers and other people involved in the advice and sale to the public of dwellings destined to house habitation or when they grant to the consumer the right to use real estate through the timeshare system, in the terms of the articles 64 and 65 of this law.
Contracts related to the activities referred to in the preceding paragraph, must be registered before the Office of the Attorney General.
ARTICLE 73 BIS. – In the case of acts related to properties referred to in the article above, the provider must make available to the consumer at least the following:
- In case of pre-sale, the supplier must display the complete construction executive project, as well as the respective model and, where appropriate, the property shows;
- The documents that prove ownership of the property. Likewise, you must report on the existence of liens that affect the property of the same, which should be canceled at the time of signing the corresponding deed;
- The personality of the seller and the authorization of the supplier to promote the sale;
- Information on the conditions under which the payment of contributions and services is found public;
- In the case of new or pre-sale real estate, authorizations, licenses or permits issued by the corresponding authorities for the construction, relative to the specifications techniques, safety, land use, the class of materials used in construction; services basic that it has, as well as all those that it must have in accordance with the applicable legislation. In the case of used properties that do not have such documentation, you must expressly indicate in the contract the lack of these.
- The structural, architectural and facilities plans or, failing that, an opinion of the structural conditions of the property. In your case, expressly indicate the reasons why it does not have them as well as the term in which it will have said documentation;
- Information on the characteristics of the property, such as the extent of the land, built surface, type of structure, facilities, finishes, accessories, place or places of parking, common use areas with other properties, undivided percentage where appropriate, services available and general physical condition of the property;
- Information on the benefits that the provider additionally offers in case of finalize the operation, such as special finishes, curtains, tiles and integral kitchen, among others;
- The payment options that the consumer can choose, specifying the total amount to pay in each of the options;
- In the case of credit operations, the indication of the type of credit in question, as well as a projection of the amount to be paid that includes, where appropriate, the interest rate to be used, commissions and charges. In the case of the variable rate, the reference interest rate must be specified and the formula for calculating said rate.
If this is the case, the mechanisms for the modification or renegotiation of the payment options, the conditions under which it would be carried out and the economic implications, both for the supplier as for the consumer;
- The conditions under which the deed process will be carried out, as well as the expenditures other than the sale price to be made by the consumer, such as expenses for deed, taxes, appraisal, administration, credit opening and research expenses. Of being the case, the costs for the accessories or complements;
- The conditions under which the consumer can cancel the operation, and
- The consumer must be informed about the existence and constitution of a mortgage guarantee, fiduciary or of any other type, as well as it’s instrumentation.
ARTICLE 73 TER. – The contract that is intended to be registered in the terms of the second paragraph of Article 73, must meet at least the following requirements:
- Place and date of conclusion of the contract;
- Be written in the Spanish language, notwithstanding that they may also be expressed in another In case of differences in the text or wording, it will be stated in the language Spanish;
- Name, denomination or company name, domicile and federal register of taxpayers of the supplier, in accordance with the legal regulations on the matter;
- Name, address and, if applicable, federal consumer taxpayer registry;
- Specify the amounts of money in national currency, notwithstanding that they may be also expressed in foreign currency; in the event that the parties do not agree on a type of changed.
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This article is based upon legal opinions, current practices, reporting from FBS MLS of AMPI members, and my personal experiences. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review. Roberto Ortiz, attorney furnished the Spanish versión of the consumer protection where is applies to real estate.