This article is about all condos: pre-construction, new developments, as well as resales. There is a particular ethical and moral way in which buyers and sellers should deal with each other, and most of the time, the person who has to keep the negotiation on this level is the agent (agents) involved.
This is our responsibility to recognize and require that everyone involved work on the highest level of reason and fairness. This subject has nothing to do with negating capitalism or denying a buyer or a seller a good deal. Where did we get the naïve and immature idea that one party has to be harmed or beaten down and the other is to win at all costs?
AMPI agents have rules and regulations they agree to follow to become and remain members. Here are some of these rules we must understand and follow without exception:
- The agent must understand that all circumstances involved in a transaction are entrusted to him.
- An AMPI professional must disclose the qualities and defects of the property under consideration.
- He should understand and tell his client the feasibility or complexity required for a completed transaction.
- He must disclose all relevant info which could impact a sale.
- He must disclose to a buyer how title is taken.
- Requires a review of the condominium regime and current rules and regulations of the HOA.
- He must never oppose the wishes of his client to consult an attorney, notary or other professional on the disclosure of :
- Restrictions or limits which could affect the property
- Problems affecting the property
- Structural soundness
- Quality of materials
Additionally, he must cooperate with all consultants his client may want to use to investigate the property and conditions of closing a transaction.
When an entity or new development has its own forms and contracts, he must still find and disclose the same details and risks as in an AMPI approved contract of sale.
All of this information is in the AMPI National Ethics which apply to every chapter in Mexico. There are many websites with these rules and regulations in English and Spanish for buyers and sellers to read. Easy to google.
If a real estate agent or an attorney is unethical, negligent, or incompetent, he can come under Article 2261 of the Jalisco Civil Code which establishes that the service provider is liable, and the injured party can file a civil action lawsuit.
The client does not need to prove a written contract for services to take this action or worry that a third party would be paying for the agent’s compensation. The client as an injured party does not have to directly pay the service provider who caused the harm.
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