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Everything you need to know about buying and selling real estate in Mexico, Puerto Vallarta, and the Banderas Bay region

New Guidelines for Real Estate Agents

Evolution of the Property Market in Mexico

“Our real estate market has new challenges. The idea of working as an agent to sell property is easy and does not require any formal training or employment by any company, is now behind us.

Today the Mexican market has its own rules.  The real estate professional cannot improvise these rules, but instead, he must stay up to date with the changes in order to offer a higher quality of service.

Clients are becoming better educated. They are ready to ask many questions and can no longer be easily fooled.”

The above words to all of our AMPI agents is from:

Rafael Valdez, professional educator of real estate principle and practices in our market of the Bay of Banderas (AMPI Compostela, Nayarit and Vallarta)

 

SECTION ONE: RELATIONS WITH THE PUBLIC

 Article 1.  It is the primary duty of all real estate professionals to obtain instruction in their area of specialty: Real Estate.

Serious real estate professionals are therefore obliged to keep abreast of all matters in connection with their field of activity, finding out about any changes that may affect real estate not only in their city but in their country overall.

With this knowledge they shall be in the position to contribute to public opinion in matters of tax, legislation, improved use of land, planning and other real estate related matters.

Article 2.  Each real estate professional is obliged to keep abreast of conditions in the real estate market because it is his or her main function, among other things, to guide customers regarding the FAIR MARKET VALUE OF REAL ESTATE.

Article 3.  A very important role of the real estate agent is to protect customers against fraud, abuse or immoral practices in the field of real estate.  It is his or her duty, therefore, to help prevent any acts that could harm the public, as well as any that can undermine the dignity of the real estate profession.

If any such acts are perpetrated by any member of the Asociacion Mexicana de Profesionales Inmobiliarios, it is the duty of whoever finds out about them to provide the necessary evidence to the National Board of Directors of said Association in order to proceed with the penalization of the person in breach of this code of ethics, in accordance with the Association statutes.

Article 4.  On accepting a property for administration or sale, the real estate professional must be acquainted with it before he can administer it or put it on the market, in order to avoid errors for customers, exaggerations of the qualities of the property on offer or any hidden information.  The acts of the real estate professional must be guided by truthfulness.

Article 5.  The real estate professional must not conduct any operations that, for any reason, may harm the interest of any of the contracting parties or of any third parties or any real estate colleague.

Article 6.  The real estate professional must not be involved in the provision of any false information in deeds or any public documents, nor falsify any declarations made before any authority.  Integrity in all acts must dominate the image he or she projects to customers in order to reward the trust placed in him or her.

Article 7.   The real estate professional must take great care, when using publicity techniques, to ensure the truthfulness of the information given in the advertisement. The technique chosen must provide and reflect the facts and not distort them in any way.

Article 8.  In order to protect any parties involved in this transaction, the real estate professional must ensure that all the information, commitments and agreements in connection therewith are put on record in writing. The exact agreement reached by the parties shall be entered in the relevant documents. The parties shall provide their signature of conformity and shall each keep a copy of the agreement, with the real estate professional keeping another copy for the record and for filing purposes.

 Article 9.  If a real estate professional agrees to do business with a customer, this means that the former undertakes to promote and protect the interests of the latter.  This is an obligation of loyalty towards the person who has entrusted a business to the real estate professional. This duty is of paramount importance and comes with the need to work in a fully fair and honorable manner with all the parties to a transaction.

 Article 10.  The guarantee of the interests placed in the hands of the real estate professional, he or she must provide the customer with absolutely truthful information on the following:

  1. The qualities and shortcomings of the property proposed or sought.
  2. The ease of difficulty involved in proceeding with the proposed transaction.
  3. Any circumstances that may be involved in the business matter entrusted in general. The real estate professional must never oppose the wish of any of the parties to the transaction to consult a lawyer, notary or any other professional with regard to:
    1. Any problems effecting the property.
    2. Any restrictions or limitations that could affect the property.
    3. Any encumbrances etc., that could restrict the use of enjoyment of the property.
    4. Whether or not the property is structurally sound.
    5. Whether or not the correct materials were used to construct the property.

The real estate professional shall, in general, assist any professionals in the different areas that the customer may wish to consult in a transaction involving any property.

Article 11.  Any fees charged by the real estate professional must reflect the fair value of his or her work and knowledge of the subject matter, in accordance with standard practice in the place where the property is located.

 

 


This article is based upon Flex MLS reporting, legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his own due diligence and review. If you have any other questions, contact me through my website.

Harriet Murray

harriet@casasandvillas.com

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