| So, you've reached a point in your life
| |
| | would be an extreme stretch of the
|
| where you think that you've learned a
| |
| | imagination to consider many of the real
|
| little about business, finance, contract
| |
| | estate agents or associates in PV as
|
| negotiating, real estate, etc. and have
| |
| | "Professionals".
|
| at least a layman's knowledge of law
| |
| | AMPI schedules periodic conferences,
|
| pertaining to each. Being that savvy, you
| |
| | conducts educational programs, and holds
|
| might also be aware of the incredible
| |
| | various meetings where they attempt to
|
| retirement locations and values south of
| |
| | keep their members and the public current
|
| the border; furthermore, you might even
| |
| | on activities in the area as well as
|
| be considering Mexico as your retirement
| |
| | changes in the Mexican law as it pertains
|
| destination. If so, you might as well
| |
| | to real estate. AMPI has a code of ethics
|
| forget everything you've learned and
| |
| | (some of which are followed sometimes!)
|
| leave your law degree at home!
| |
| | and it does attempt to establish a
|
| Mexico, as beautiful as it is, has a
| |
| | uniform set of operating procedures, some
|
| somewhat different way of doing business
| |
| | of which are in writing, others
|
| and a completely different set of laws.
| |
| | understood but not documented. AMPI
|
| Additionally, all legal transactions,
| |
| | brings real estate personnel together in
|
| including real estate transactions, are
| |
| | a private, non-governmental organization,
|
| done in Spanish. Therefore, for those of
| |
| | where it's members voluntarily agree to
|
| you that may be considering locations in
| |
| | abide by the organization's statutes and
|
| Mexico as possible retirement
| |
| | code of ethics. For sure, it's better
|
| destinations, the following information
| |
| | than nothing but still not to be confused
|
| should give you some insight as to how
| |
| | with or even compared to associations
|
| the Mexican real estate industry works,
| |
| | such as the National Association of
|
| list some of the possible pitfalls, and
| |
| | Realtors or NAR in the US. Dual agency
|
| most importantly, give you the guidance
| |
| | disclosure, designated agency, full
|
| required to assure a pleasant and safe
| |
| | disclosure, confidentiality, imputed
|
| experience.
| |
| | knowledge and notice, implied knowledge,
|
| In 1984, we made our first real estate
| |
| | fiduciary duty, loyalty, and vicarious
|
| purchase in Puerto Vallarta; a
| |
| | liability are foreign concepts to the
|
| condominium in Mismaloya, about seven
| |
| | majority of agents in Mexico.
|
| miles south of town. Our second purchase,
| |
| | As an example of differences, the NAR
|
| two years later, was the adjacent condo.
| |
| | provides it's member agencies with
|
| A year later, we removed the wall between
| |
| | standard statewide listing forms,
|
| the two condos and remodeled them into
| |
| | pre-qualification forms, escrow account
|
| one very spacious three bedroom condo.
| |
| | and earnest money forms, standard
|
| For thirteen years, while still working
| |
| | purchase agreement forms, letters of
|
| in Houston, we thoroughly enjoyed
| |
| | intent, etc. The NAR has written and
|
| visiting Vallarta two or three times a
| |
| | enforceable guidelines regarding the
|
| year.
| |
| | handling of commissions and the sharing
|
| At some time between the purchase of the
| |
| | of commissions between the selling and
|
| two condos, we noticed that our original
| |
| | buying agents. In Vallarta, there are no
|
| escritura (legal property documentation
| |
| | such forms provided by AMPI. Each real
|
| similar to a title or deed that is held
| |
| | estate agency has it's own listing form,
|
| in a fidecomiso or bank trust) showed the
| |
| | which clearly depicts the listing agent
|
| property value to be about one third of
| |
| | as receiving 100% of the commission upon
|
| what we actually paid for it. When we
| |
| | sale of the property. Although there are
|
| inquired about the discrepancy, we were
| |
| | guidelines for commissions, they are
|
| told that the lower value was used in
| |
| | still to some degree negotiable with the
|
| order to reduce our annual property
| |
| | seller. The listing agent can then
|
| taxes. The same was true when we
| |
| | negotiate commission sharing with the
|
| purchased the second condo.
| |
| | buyer's agent.
|
| It wasn't until many years later, when we
| |
| | All other forms vary from agent to agent
|
| decided to sell the condo, that we
| |
| | and are not necessarily written in the
|
| learned that capital gains taxes were due
| |
| | best interest of the buyer. Also, all
|
| on the huge difference between the
| |
| | forms and contracts for North Americans
|
| selling price and the documented purchase
| |
| | are in English; however the Spanish
|
| price. Ouch, we owed substantial taxes on
| |
| | version is the only document that has any
|
| a paper gain, when in fact, there was
| |
| | legal standing in Mexico. Therefore,
|
| very little real gain! We then learned
| |
| | regardless of what you read in English, a
|
| that the condo developer entered the
| |
| | Spanish speaking attorney should always
|
| extremely low sales prices on all the
| |
| | represent you along with your agent.
|
| escrituras in the condo complex in order
| |
| | Another major difference between AMPI and
|
| to evade paying substantial capital gains
| |
| | NAR has to do with the Multiple Listing
|
| taxes. As we later learned, the developer
| |
| | Service or MLS. In the States, the MLS is
|
| could have entered the selling price, the
| |
| | controlled and monitored by the NAR and
|
| appraised value, his cost of
| |
| | is available to all NAR agents. In
|
| construction, or just about anything
| |
| | certain Mexican cities, including
|
| imaginable into the escritura, and we,
| |
| | Vallarta, there is an MLS however it is
|
| naïve North American property buyers,
| |
| | not controlled by AMPI. Instead, it is
|
| were at his mercy!
| |
| | privately owned and operated by a local
|
| So, what happened upon the sale of our
| |
| | publisher and is available to the public
|
| condo you ask? Well, our wonderful
| |
| | at no charge. AMPI members are able to
|
| realtor just told us not to worry, no
| |
| | list their properties on the Vallarta
|
| problema; she handled all the paperwork
| |
| | MLS, with the general public as well as
|
| during the selling process and merely
| |
| | the other AMPI members having access to
|
| forwarded the phony valuation figures to
| |
| | the listings.
|
| the new escritura held by the new
| |
| | Once you understand the inner workings of
|
| uninformed buyers, thus it became their
| |
| | the real estate industry in PV, you need
|
| problem when they decided to sell.
| |
| | to learn a little about Mexican real
|
| Upon the sale of the condo, we bought a
| |
| | estate law. It is very complex regarding
|
| beautiful new mountainside villa with a
| |
| | trusts, escrows, mortgages, treatment of
|
| panoramic view of Banderas Bay, El
| |
| | taxes, etc. and is often open to
|
| Centro, and the Sierra Madres. We saw the
| |
| | interpretation by a federally appointed
|
| new villa advertised in one of the local
| |
| | attorney, known as a notario. A small
|
| magazines and asked our realtor friend to
| |
| | percentage of the realtors in Vallarta
|
| show us the property. He showed us what
| |
| | have a fair understanding of Mexican law
|
| seemed to be, every property in town,
| |
| | as it pertains to real estate
|
| before reluctantly taking us to see the
| |
| | transactions; however the vast majority
|
| villa in the magazine. Some time after
| |
| | of them are sorely lacking in this field.
|
| buying the villa, we learned that our
| |
| | Even with little or no knowledge of the
|
| friend the realtor, received only 10% of
| |
| | law, they will be anxious to advise you,
|
| the commission on the sale because that
| |
| | right or wrong, thereby looking like
|
| was all the listing agent was willing to
| |
| | "Professionals". The best law for you to
|
| pay. The listing agent ran the ad in the
| |
| | follow is caveat emptor, buyer beware!
|
| magazine and didn't feel that an agent
| |
| | Because of the many pitfalls that a buyer
|
| representing a buyer was necessary.
| |
| | can encounter while purchasing real
|
| Therefore, our agent spent a couple days
| |
| | estate in PV, we learned over twenty
|
| showing us properties listed by his
| |
| | years ago that it is wise to interview
|
| agency before caving in to our demands
| |
| | realtors with scrutiny, keeping in mind
|
| and taking us to the villa of our dreams;
| |
| | that most all will be promoting their own
|
| one that we have thoroughly enjoyed for
| |
| | listings first and meeting your needs
|
| more than a decade.
| |
| | second. It's just human nature and with
|
| These experiences revealed the tip of the
| |
| | virtually no control in Mexico, it's
|
| iceberg and after living here for ten
| |
| | pretty much assured. Also, because almost
|
| years, we've finally been able to expose
| |
| | 100% of them have listing agreements with
|
| the entire iceberg and share some of the
| |
| | the sellers, they are legally bound to
|
| details below.
| |
| | act in the best interest of the sellers,
|
| To begin with, there are no licensed real
| |
| | and not necessarily in your best
|
| estate brokers or agents in Mexico! In
| |
| | interest. Because the buyer usually has
|
| fact, there is no mandatory licensing for
| |
| | no contractual agreement with the
|
| real estate agents in Mexico because the
| |
| | realtor, he will in all probability get
|
| Federal legislation process has yet to
| |
| | the "short end of the stick" in this
|
| accomplish it and therefore it remains in
| |
| | conflict of interest.
|
| limbo. So, exactly what are the
| |
| | Of all places, in Mexico you should
|
| qualifications for being a broker or
| |
| | select an agent that is 100% dedicated to
|
| agent in Mexico? They are essentially the
| |
| | helping you find the property that meets
|
| same; one must know how to read and
| |
| | your needs and satisfies your
|
| write, have free time and the ability to
| |
| | requirements; preferably, a contractual
|
| put a "For Sale" sign in the front yard
| |
| | agreement with an agent with no listings,
|
| or show a listed property, and should
| |
| | no axe to grind, no ulterior motive, and
|
| have access to a car and be able to
| |
| | is exclusively representing buyers and
|
| drive. In Mexico, the term "broker"
| |
| | their best interests.
|
| refers to the boss or the owner of the
| |
| | A true buyers´ agent in PV should have
|
| agency and the term "agent" refers to the
| |
| | no property listings, should have
|
| employee.
| |
| | complete access to the Vallarta MLS,
|
| With the booming real estate market and
| |
| | should know the areas and growth trends
|
| economy in PV that exists today and the
| |
| | in and around Vallarta, should be able to
|
| qualifications listed above, it's quite
| |
| | professionally negotiate on the buyer's
|
| obvious why we have such a diverse group
| |
| | behalf, should have a decent
|
| of agents and brokers in Vallarta. The
| |
| | understanding of Mexican real estate law,
|
| off-the-cuff babbling by many of the
| |
| | should have a working relationship with
|
| agents is so often inaccurate or
| |
| | the local notarios, real estate
|
| misleading that it can easily result in
| |
| | attorneys, escrow and title agents,
|
| placing the buyer or seller in
| |
| | mortgage bankers, insurance agents,
|
| intolerable predicaments.
| |
| | inspectors, appraisers, and lastly, your
|
| In order to have some degree of
| |
| | representative must have a thorough
|
| continuity from agent to agent, a
| |
| | working knowledge of the local real
|
| voluntary association for real estate
| |
| | estate industry and understand the
|
| personnel has been formed in Mexico. The
| |
| | idiosyncrasies associated with it.
|
| Associacion Mexicana de Profesionales
| |
| | Buying your dream home or condo in
|
| Immobiliarios, A.C., known as AMPI, is
| |
| | Vallarta should be one of your best
|
| quite active in Vallarta, although
| |
| | experiences, however without due
|
| membership in AMPI is not compulsory and
| |
| | diligence, it can be a nightmare.
|
| has no bearing on the capabilities of the
| |
| | Obtaining an exclusive buyers´ agent
|
| agents representing the buyers or
| |
| | with 100% dedication to you is a
|
| sellers. You'll notice the "P" in AMPI
| |
| | prerequisite for assuring a pleasant
|
| stands for "Professionals", however it
| |
| | beginning of your retirement in Paradise.
|
