Valuable Puerto Vallarta Real Estate Article

Boyce Lafayette De Mente has written guides for American and Canadian business on how to best accomplish effective business transactions in China, Japan, Korean, other parts of Asia, and Mexico. The information in this article is a summary of some of his discussions on understanding cultural differences. To effectively purchase property in Mexico, buyers and sellers will benefit from understanding how business is transacted in a different culture.

The culture in the United States and Canada differs significantly from many other countries. There are differences intellectually, emotionally, spiritually, and philosophically.

Octavio Paz writes of a list of differences between his country and others: One loves myths and legends; the other loves fairy tales and detective stories. One country is fascinated by horror; the other is repelled by it. One country delights in fantasy while the other prefers hard reality. One country is automatically trusting; the other is automatically suspicious. One group are pessimists; the other are optimists. One culture delights in telling light-hearted jokes; the others are masters at sarcasm. One group is put off by foreign things, regarding them as a kind of contamination; the other want intimate contact with what is different and believe such contact enhances the body and soul.

One group is critical of others and themselves and welcomes change; the others can be resistant to change and strive to avoid criticism. One culture looks forward to a golden age in the future; the other has traditionally tired to hold onto or return to a golden age of the past.

A big difference between the cultures that significantly affects business and social situations is the trait of one group to be open and frank; to tell all and trust other people to do the same.

The other group has been conditioned to distrust, to hold back and be reserved, maintaining a shield of invulnerability by never revealing true thoughts or feelings.

One of the basic differences between the cultures is that one country has been taught the traditions of the importance of power and strength; doing and achieving. The other culture values and nourishes the condition of "just being", existing. This culture gives more credence to thought and human relations.

The role and importance of personal relationships must be addressed before business can develop successfully. A buyer or seller will achieve more of their objectives by beings aware of and sensitive to these differences in perspective.

Consideration must be given to a variety of circumstances that regularly occur in working with individuals. Family problems such as weddings, illness, death, or transportation can affect the time it takes to accomplish a business goal.

De Mente makes an important statement when he says that in order to succeed in another country, you must be culturally correct. If it is a new experience for you, it may require learning to turn what may be otherwise a negative factor into a positive one i.e. learning more about the seller as you experience the importance of his daughter's wedding, while you delay the sales transaction.

This is not to say that all cultural characteristics can be turned into a positive by trying to be culturally correct. In all cultures, there are some traditions that need to be changed for the better. This change must come from within, and will not be accomplished overnight.

Some business rules to follow:

1. When estimating the time to complete a transaction, multiply the time by 2 or 3 from what you think it will take.

2. Don't belittle anyone that you are dealing with.

3. Don't complain publicly about differences or failings. It can make things worse. Maintain a positive, problem-solving position that incorporates culturally acceptable methods.

4. Never criticize your counterparts publicly, no matter how serious the offense. If you shame another, they will never forgive you and you will find it difficult, if not impossible, to get cooperation ever again from them. Any criticism or discipline should be done privately and diplomatically.

5. Don't "underdress" or act casual while talking or discussing business. Use good manners, remembering that more formal is better than informal.

6. Dress conservatively if you are meeting the buyer or seller. Showing
up in shorts and a t-shirt will not gain you any advantage.
Address the person you are talking to by their full formal name,
unless you are told by them to do otherwise.

Some differences in doing business in another country go beyond culture. One is the institution of the public notary.

It is important to understand that a public notary in the United States is very different from a Mexican notary. To misunderstand is to make a cultural and business mistake.

American notaries have nothing to do with drawing up of documents; they witness the signatures of the person (s) signing.

In Mexico, only an attorney can act as public notary. The "notario publico" draws up the documents for transfer of property. Their fees are based on their status as lawyers and as notaries.

Foreign companies setting up business operations or foreigners purchasing property incur more costs involved than what they may be used to in their country of origin. The fees and permits to incorporate a company, or to purchase a property within the restricted zone, require payments to the notary and the city, state, or federal government agencies that process these requests.

Mexican law requires that workers be entitled to a variety of benefits above their compensation. This means that the business of owning a property includes knowing and paying correct salary and benefits.

Consult a reliable property manager and/or accountant to make payments correctly to protect yourself and your employee.

This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas area. I recommend that each potential buyer or seller conduct his own due diligence and review.