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Puerto Vallarta Mexico | Homes for Sale | Condos for Sale | Area Maps | Photo Galleries | Vacation & LongTerm Rentals | Contact Us | |
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REALTOR MEMBER ASSOCIATIONS Millennium Vallarta Real Estate is proud to be a member of AMPI, the Mexican Association of Real Estate Professionals, which is comprised of an exclusive group of real estate brokers and agents in Mexico who are committed to upholding the highest standards of real estate practices. AMPI membership denotes professionalism, solvency and professional education. AMPI members throughout Mexico work together to efficiently meet the needs of real estate clients through a multiple listing service [MLS]. Established in 1989, Multi-List Vallarta is the multiple listing service that serves the Puerto Vallarta real estate industry through a real estate database that includes condominiums, homes, villas, residential and commercial lots, commercial properties and business opportunities. Practitioner Dispute Resolution Systems in Mexico Through NAFTA, provisions have been set up for binding arbitration between the three signatory countries; the U.S., Mexico and Canada, at the government level, the company level, and at the individual level. Arbitration is carried out per the rules of one of the established arbitration commissions and provisions have been made for enforcement of the arbitration award in the applicable court of law if it becomes necessary. Should the losing party in the arbitration award choose not to honor the agreement made through arbitration, the applicable court will enforce the award. Mexico’s arbitration law was enacted on July 22, 1993 and is contained in Articles 1415 through 1457 of the Mexican Code of Commerce. International arbitrations are governed by this law when they take place in Mexico. They are defined as arbitrations between parties who are residents of different countries or the place of the arbitration is located outside of the country in which the parties have their residency. The parties may specify the place of arbitration in their agreement. If this is not done, the statute specifies that the place which had the most substantial relationship of the agreement/litigation will be the place of arbitration. Many real estate practitioners are now suggesting that the arbitration clause be included in all contracts for the purchase and sale of real property. Practitioner Services in Mexico The real estate agent is prepared to list and promote property for sale. More and more of them are marketing on the internet. While the basics of a fiduciary relationship is outlined in Article 267 of the Mexican Commerce Code, buyer and seller separate agency is not common in Mexico, most agents represent both parties. The foreign agent who wishes to represent his/her buyer should probably obtain a written agreement with the listing agent outlining duties and responsibilities of each agent and determine the method of payment of commission and amounts, at the beginning of the negotiations. Property Marketing Systems in Mexico On line multiple listing systems are used in limited areas of Mexico and it is hoped that usage and cooperation with other agents will increase. Referral Systems in Mexico At present Mexico does not have a national referral system, nor an official referral policy. Some franchises such as Century 21, Realty World and ReMax encourage transnational referrals but success is limited at this point since many Mexican practitioners are not yet accustomed to representing different parties and sharing commissions. Remuneration Mexico The real estate agent generally works on a commission basis, not a salary. Commission is generally paid by the seller at the time of buyer’s signing final documents at the Notary Public office. It is important for cooperating agents to obtain a written agreement with the Seller’s agent prior to closing of the transaction. Escrow (Handling of Trust Funds) Traditionally, the buyer and seller have met at the Notary Public’s office to sign the deed and to exchange funds and deliver possession of the property. With increasing sophistication in the marketplace, some agents have established trust accounts and manage third party funds for release upon the performance of conditions. Currently no bonds or errors and omissions insurance is available in Mexico to protect these funds. Certain companies in the country have established escrow services as third party neutral agents. Some of them maintain principal escrow accounts in FDIC insured accounts in the United States. Since there is no Mexican government regulation of these companies or accounts, it is important to request references and track record if one is going to use their services. Certain title insurance companies are now offering the escrow services through their U.S. based escrow accounts when used in conjunction with the issuance of a policy of title insurance. Since agent management of third party funds is a new area in Mexico, it makes sense to check carefully on costs, operating procedures and reputation of those who will be handling the funds in a transnational operation. ««« more info |
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