Puerto Vallarta Real Estate Articles

Question: What does AMPI mean? “ASOCIACION MEXICANA DE PROFESIONALES INMOBILIARIOS, ASOCIACIÓN CIVIL (Mexican Association of Real Estate Professionals, a Civil Association)

Question: Do I need to have a license to sell real estate in Mexico? No, there is no state or national licensing requirement.

Question: Is there any national organization for real estate practitioners? Yes, in Mexico City there are three organizations. The larges national voluntary organization is AMPI. There are chapters of AMPI in Vallarta and Bucerias.

Question: Does AMPI have legal power? No, its mission is to be a private, non-governmental organization that brings together professionals who provide real estate services in Mexico in compliance with their established statues and code of ethics. They wish to provide full and proper training for their associates, and to promote proper real estate practices and safeguard the rights of private property. Their work philosophy is to create of level of trust with real estate practitioners in order to standardize operation criteria under a code of ethics to give the real estate profession integrity in Mexico.

Question: Can I buy or sell real estate through a non-AMPI member? Yes

Question: Who are members of AMPI? Members are individuals, not organizations or companies, who have met certain requirements. Membership is personal and non-transferable.

Question: How is AMPI different from the National Association of Realtors or Canadian Association of Realtors? All three organizations are affiliated with each other’s national organizations in an effort to support each other and raise professional standards among the countries of North America. The three organizations have adopted within their assemblies similar codes for ethics and professional education.

Question: How is licensing different? In the United States, the individual states require that applicants meet certain educational and ethical requirements. The states issue the licenses for these persons to practice. In Mexico, there is currently no licensing requirement. In the United States and Canada, state and federal laws regulate the licensing and education of real estate agents.

Question: Do the national governments of these countries have laws protecting the consumer in regard to real estate practices? The United States and Canada have state and federal laws to protect the consumer against unethical and fraudulent actions taken by real estate agents. In Mexico, there is no such specific body of law. There are civil and criminal codes that can apply to situations, but not specifically regulate the conduct of real estate practitioners.

Question: What can AMPI do in regard to improper actions of a member? The two parties to a complaint must first agree to be bound by a decision of the Honors and Justice Committee, local or national. If they do not agree, AMPI cannot make a binding decision, as it is a non-governmental organization. If the parties to a complaint do agree to arbitration, the Committee can issue sanctions or expulsion. Any decision on a local level can be appealed to the National organization’s appropriate committee.

Question: What happens when parties to a complaint hire attorneys and wish to pursue their injury through the legal system? AMPI has no jurisdiction and voluntary binding arbitration is not an option.

Question: Who are members of AMPI? Associate members must meet certain requirements and Affiliate members may join upon recommendation of an Associate and be associated with the Associate in some capacity in business.

Associate Members apply to join as individuals. The National Association must approve them for membership.

Associate Members pay certain fees and attend ordinary and extraordinary meetings within the Section as well as the Annual Congress.

They pledge to comply and ensure compliance with the Statues, Code of Ethics and regulations of the Association.

They pledge to continue professional improvement in education and the activities of their Association.

Question: Who are Affiliates? They are individual who are partners, employees or vendors of an Associate Member who act on the behalf of the Associate. There are Honorary Affiliates from other professions or real estate professionals outside the country. Affiliate members cannot vote in the AMPI meetings.

Question: What are the requirements for being an Associate member of AMPI? On the national level:

They are persons that provide services related to real estate and such activities are their primary and permanent occupations.

They are registered with the local authorities and have been involved in real estate for a minimum of one year or have been an Affiliate Member under another Associate.

They have made a written application for admission and agree to comply with standards that have been set, including passing a course in the subject of real estate with a minimum duration of twenty hours, issued by an officially recognized education or training institution.

An Associate Member who has been in the Association for more than two years has recommended them in writing.

The National Advisory Council, upon consultation with the Sectional Advisory Council, has approved the applicant where the applicants’ business is located. Only person authorized by the National Advisory Council may become Associate Members. Sectional Advisory Councils may not admit local Associate Members.

Sectional Associations, such as Bucerias and Vallarta Chapters, may have additional requirements for membership, both for Associates and Affiliates.

Question: What are the requirements for Affiliates? The Affiliate of an Associate must:

Be associated with the Associate in business. If the Affiliate changes his relationship with the Associate or the associate ceases to be an Associate or is suspended, the former shall no longer be an Affiliate

The Affiliate must apply for admission in writing, agreeing to comply with the statues and code of ethics of this non-governmental voluntary organization.

Verify that he or she works in real estate as his main or permanent activity.

Have the recommendation of the Associate Member with whom he is working.

Question: What are the obligations of Affiliate membership?

a. To comply with the statues, code of ethics, regulations and instructions and manuals of the Association.
b. To pay required fees.
c. To make a constant effort to improve professionally and take part in the activities of the Association
d. To abide by any guidelines set forth the National or Section councils in their fields of jurisdiction;
e. To promote solidarity in the section
f. To perform their professional activities in accordance with the association’s code of ethics.
g. To comply with administrative and fiscal obligations by the authorities in regard to their registered address, telephone number and name of the company where they work.

If the Affiliates are in good standing with their obligations they shall be entitled to:

a. Use any services provided to the Associates
b. Take part in social, cultural and education activities of the Association.
c. Use the affiliation symbol, but they may not use the logo or mention that they are members of the Association in their personal stationery unless the latter is in the name of the main Associate.
d. Only persons who are authorized by the national Advisory Council may become Affiliates.

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