What two rules apply to how an AMPI real estate professional may advertise a property? The agent must first obtain authorization from an owner before advertising his property. The agent must also obtain authorization from a listing agent to promote or advertise that listing agent's property.
What is an exclusive right to sell? An owner may enter into a contract with a real estate professional to empower the agent to become his authorized representative to promote his property. The authorized agent of the seller must give priority to this listing and seek buyers. In the case of an offer on the property, the authorized agent will represent the owner and his best interests. The authorized exclusive agent for the seller shall, according to the terms of the listing contract, receive compensation in the event of a sale of the property. The listing agent may cooperate with other agents and share his commission.
What types of fees can be charged by a real estate professional? The fees collected must be fair compensation for the work and knowledge that the agent has demonstrated. His fees should be in accordance with the polices of the area where the property is located. These fees can be based on a percentage of the purchase price or can be a fixed amount.
What is the commitment that an agent has to his principal? When the agent accepts any business from a principal, he must make a commitment to promote and protect his client's interests. The agent has an obligation to be loyal to the person who has entrusted him with the business of buying or selling a property. Of utmost important is the duty of the agent to act with absolute justice and honesty towards all parties involved in a transaction.
What information must a real estate professional give to his Buyer client? The agent must disclose what he knows to be the condition of the proposed property, the feasibility or completion of the proposed transaction, and all the circumstances involved in the business entrusted to him as an agent.
What if the buyer or seller wants to consult an attorney, notary or other professional? The real estate professional must never oppose the wish of any party to the transaction to consult an outside expert opinion in regard to: problems affecting the property, restrictions or limitations which could affect the property, the structural soundness of the construction, or whether correct materials were used in construction of the property. The real estate professional must cooperate with all consultants and advisors that his principal needs, so that the principal can be comfortable with the real estate transaction.
What if a real estate agent, acting for a client, obtains a discount on a service or product? This credit or benefit shall always be credited to the client.
Is there a guildline within AMPI on confidentiality requirements of an agent to his client? Absolutely. The agent must not divulge or give opinions or information about clients, which may be detrimental or which have been said to him in confidence by his principal.
Should an offer on a property be in writing? Yes, the agent must attempt to obtain written offers to present to the seller.
Does a seller have the right to see more than one offer at a time? Yes, the agent is obligated to present all written offers to the owners, whatever the offer may be. The seller has the right to compare and decide whether an offer is acceptable or not, based on the terms presented in the offer.
May a real estate professional acquire for himself or his company a property that he has listed? Yes, the agent involved in a listing may buy the property, but he must inform his client of his intention and should suggest that the transaction be handled by using a professional appraisal to establish a fair price.
May a real estate professional give an opinion of value of a property, which he has or could, have an interest in? The agent may give an opinion of value, if he also discloses that he has a potential conflict of interest.
What if the agent has no experience in the area in which he is being asked to give an opinion of value? If a market area is out of his expertise, the professional must consult an expert appraiser. Every circumstance surrounding this case must disclosed to the client.
AMPI is a national Mexican Association of Real Estate Professionals. Members have voluntarily met requirements to be in this organization and agree to adhere to certain standards of education and behavior.
"For your selling ought not to be a work that is within your own power and will without law or limit, as though you were a god and beholden to no one; but because this selling of yours is a work that you perform toward your neighbor, it must be so governed by law and conscience that you do it without harm and injury to your neighbor."
Martin Luther, 1524
Harriet Cochran Murray
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 or seller conduct his own due diligence and review.
