Puerto Vallarta Real Estate Articles

Recently I was privileged to attend a section of the course taught for certification to become a Certified International Property Specialist. One of the important lesson plans examines the differences that affect business relationships.

If you are selling or buying real estate in a foreign country, it is important to understand the cultural differences that may influence your business relationships.

Language, religion, and social structure contribute to the context of a business relationship, which includes the work of buying or selling a property. The values, customs and attitudes of another culture are not necessarily the same as your own. They may differ significantly in the level of formality, public manners, and conversational rules, work ethic, attitudes toward foreigners, gender roles, dress, level of individualism versus group conformity, loyalty, power, business protocols, level of directness, methods of conflict resolution and decision-making, pace, entertainments and gift -giving, eating behaviors, days of religious observance. That's a lot to think about!

For many cultures, the history of a country and its people is extremely important and very much influences everyday life. Political, social and religious beliefs can create predispositions for the way in which a certain culture interacts with other nations and/or people. In Brazil, for example, it is wise to avoid discussing politics relating to Argentina, Brazil's traditional rival.

Keep in mind that the way, in which people make decisions, place their trust in others, disclose information, or even make eye contact, is often deeply rooted in cultural mores.

Stereotypes are attitudes toward groups of individuals that can prevent people from treating those individuals objectively. Such opinions can make it harder to find an understanding of each other.

Prejudices invoke sharp emotional responses. For example, prejudice exists when someone dislikes another because of a difference in religious background. Prejudice may also be the situation when marketing efforts are focused on a favored group, such as "rich Americans."

In America, people say" "Sticks and stones may break my bones, but words will never harm me." Arabs say: "A sharp tongue cuts deeper than the sword." Thus these cultures look differently at the importance of compliments, insults, or indifference.

A tip: Cultivate a positive regard for another cultures; sincere good can cause mistakes to be overlooked. Accept what you can't understand.

The countries that make up North America are Canada, the USA, and Mexico. The differences noted here are generalizations.

In Canada and The United States, business practices can be influenced by Judeo-Christian traditions, legal traditions of common law, a belief in using the law to resolve conflict, mobile social stratas that are more influenced by material status or family than by set roles, individual or family priority over other group interests, linear concept of time, a logic based on reason rather than situational dictates, a tendency toward openness to foreigners, great ethnic diversity.

A cultural sketch of Canada:

English and French are the official languages, and French is predominant in Quebec. Canadians are generally analytical and favor the objective over the subjective. There is a strong sense of ethnocentrism within each province, particularly in Quebec, where citizens are considered French Canadians. Emphasis is placed on ability. Individual recognition is highly valued. Emotion is not shown in public.

Business practices most often used:

A firm handshake, with eye contact, and a friendly manner is customary. First names are used when the other party suggests that you may do so, otherwise, stick with titles and the surname to show respect. Do not be overbearing. Allow the Canadian citizen to be the first to bring up business if you are in a social setting. Business gifts or dinner or entertainment are usually exchanged at the close of business.

Mexico

Mexico can be described along with their Latin American counterparts. Spanish or Portuguese is part of their heritage. In addition to Mexico, the countries most likely to play a role in international real estate are: Brazil, Argentina, Venezuela, Panama, Columbia, Chile, Costa Rica, Educator and Bolivia.

Some of the cultural influences that affect how business practices are done include: Judeo-Christian traditions, legal traditions of civil law, minimal respect for the law and a slow judicial activity, fixed social stratas and limited upward mobility; non-linear notions of time, logic based on emotions and situational dictates rather than on reason, strong loyalties to the family.

A cultural sketch of Mexico:

There exists a strong allegiance to the Catholic Church. An individual is responsible for his/her own decisions, but the good of the family/group is most important. Subjective feelings are often used as the basis for truth. Women are well respected. Age and rank are held in high esteem. People are informal and open in sharing feelings.

When conducting business, be aware:

Shake hands upon greeting and departing. Do not refer to the United States as "America." Mexico is also the "United States of Mexico" and in North America. Be aware that questions are typically answered with the intention to please, even when the information is known to be incomplete or the requested action impossible. People are more important than schedules; meetings can be interrupted by personal visits. Short-term profits are commonly preferred over long-term results.

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.

Sources for this article are from the course manual of "Essentials for International Real Estate," National Association of Realtors