The word, REALTOR® has international trade mark protection through the National Association of Realtors®. (NAR) It is used by 1.2 million practitioners in the United States and by international REALTORS® in more than 56 countries, who are affiliated with NAR including the Mexico real estate region. Members of the Mexican Association of Real Estate Professionals (AMPI) are able to become   INTERNATIONAL REALTORS®

In recent months I have heard Mexican government officials at both state and national levels refer to “coyataje.” The closest I can come to an English translations would be “coyote.” A federal government official used the word with reference to the real estate industry being plagued by “too much corruption and fraud.” A coyote is someone selling Mexico properties without an office and without having the proper training in the business and/or dealing outside any code of ethics. The person can be anything from a bar tender to a taxi driver and (even part of a company having a license to do business in Mexico.) Having a business license does NOT make one a REALTOR® again a word with trade mark protection.

Several years ago as a result of a scandal where a person fled the country with buyer’s funds, the AMPI Section in Los Cabos, Baja .California .Sur. came up with a set of Rules. The rules were created as a guide as to how to purchase real estate SAFELY in Mexico. Rule # 1 is “Be sure the agent is a member of AMPI.”

We often see signs “Trato Directo.” This is where a Seller decides to sell without the aid of a professional. Earlier this year a federal government official referred to this as “peligros.” (Dangerous.) ” It is a minefield for those without proper training and knowledge of Mexican law.

So bottom line, when buying or selling property in Mexico it is essential to work with a REALTOR®. Otherwise it is Caveat Emptor (Buyer beware.)

Author John Glaab CIPS is a founding member of AMPI Los Cabos. A Certified International Property Specialist he is active in the National Association of Realtors® Global Business Alliances Group. John was recently appointed as a member of Ampi’s International Relations Committee. for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

One of the most important points to check when choosing your Mexico real estate office is qualifications.  While there are no legal requirements in most of the country for someone to work in real estate, Mexico agents can choose to gain qualifications to better serve their clients; it is to your advantage that your agent’s office holds these kinds of qualifications.

Some of the key qualifications to check include:

ü      Membership in AMPI – AMPI (Mexican Association for Real Estate Professionals) is Mexico’s only professional real estate association.  They promote professionalism, business ethics and training.  It is important that the real estate office you choose is affiliated with AMPI.

ü      Degrees – In 2009, Mexico created a new university degree in Mexico real estate.  Because it is so new, few agents hold this degree, but it is an asset.  Otherwise, degrees in business and related fields from the U.S. or Canada speak well of the level of professionalism.

ü      Certificates & Other Training – There are also certificates and other training programs, offered by AMPI as well as various educational institutions.  These indicate that an agent is interested in keeping up to date with the most recent and relevant changes in the industry.

ü      Experience – While this is not an official qualification, per se, years of experience searching for and selling Mexico homes for sale can count for a lot, especially combined with the qualifications listed above; an experienced broker will know how to apply the knowledge gained from courses, etc.

It is important to remember that the specific agent helping you in your search process does not necessarily have to hold these qualifications, but they should be working under a broker who does.  Be sure to ask your agent about their office’s qualifications – preferably before you start the search process.

TOPMexicoRealEstate.com; Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546

More than 600 Mexico real estate agents who are members of the Mexican Association of Mexican Realtors (AMPI) from Western Mexico met recently in Guadalajara. They came to attend the twenty first annual Forum of the AMPI Section in that city.

The “Key Note” address was given by Andres Oppenheimer from the Miami Herald. His column is syndicated and appears in more than seventy newspapers mostly in the United States, but as well in Argentina. Andres is a Pulitzer Prize winner. He is the author of the bestselling book, “Bordering on Chaos.”

Alonso Ulloa Velez, Secretary of the Economy and Promotion in Jalisco opened the FORO. He made a special reference to work being done on a Mexico real estate licensing law in the Jalisco Congress. Deputy Mariana Fernandez is heading a Commission of the Economic Development Department. It had its first meeting on August 31st. A major objective will be to eliminate “coyotes” (non professionals) from performing   legal real estate transactions. NOTE: While a handful of states now have licensing, meetings between AMPI President, Adan Larracilla and the Chamber of Deputies at the federal level are ongoing. The most recent work session was August 5th.

Andres Oppenheimer touched on several economic and social themes. He said that Mexico can take advantage of new high salaries in China to increase activity in the Mexican manufacturing sector. He suggested that Mexico is in a great position to promote, medical tourism.   “Every day, there are more than one million Americans looking outside the U.S.A, for medical services.” he said. “Forty six million citizens are without medical insurance. “ He added that Mexico should accredit the largest number of hospitals possible to satisfy certified organizations in the U.S. Mr. Oppenheimer told the FORO that in order for Mexico to be competitive with China, India, Brazil and other Latin American countries, a new emphasis should be placed on educating engineers and scientists.

Other sessions included a panel on the future of real estate in Mexico, a presentation on creativity and innovation, and architecture in Mexico. A warm reception was given to Dr. Carlos Andrade Garin, Director General of the organizing committee for the sixteenth edition of the Pan American Games. They will take place in Guadalajara from October 14 to 30th in Guadalajara. In addition to athletic activities there will be 451 cultural events. The media center, which has almost been completed, will be larger than the one for the Olympic Games held in Beijing. Dr. Garin’s presentation received a standing ovation.

Attendees at the FORO were invited to attend AMPI’s Fortieth Annual Conference and Annual Meeting. It will be held in Merida, Yucatan from October. 3 to 7th.

Author John Glaab CIPS is a founding member of AMPI Los Cabos. A Certified International Property Specialist he is active in the National Association of Realtors® Global Business Alliances Group. John was recently appointed as a member of Ampi’s International Relations Committee. for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

The Mexican Association of Mexican Real Estate Professionals (AMPI) has a new President. Adan Larracilla of Puebla, Puebla, has been sworn in, replacing outgoing President Hector Obregon of Leon, Guanajuato Also at the ceremony, Sergio Gomez became AMPI’s new Vice President and ten members representing a broad cross section of the Republic, joined the National Advisory Board. Jose Oscar Vega from the Secretary of the federal Government, representing President Felipe Calderon, presided at the ceremony.

Outgoing President Obregon reported on AMPI’s activities last year, its 55th year of operation. Several new Sections throughout the Mexico real estate market have been established with AMPI now having Sections in 64 cities. A major accomplishment was the establishment of AMPI’s new Training and Statistics Institute. He also reported he had breakfast earlier in the day with fifteen AMPI Past Presidents New President Larracilla outlined his goals and aspirations for 2011.

Jose Oscar Vegas had three messages for AMPI. First, he reported that the current Government is in full support of AMPI and its contribution to the housing industry.  There are too many. “ coyotes” and too much fraud in the real estate industry. . Second he spoke about the need to “regularize” the real estate industry. Here he referred to the need for licensing and mentioned the handful of states that have a law governing real estate. The third theme was “trato directo” which basically is the For Sale by Owner market. He said, “This is a risky proposition.”

Also speaking at the TOMA was Adrian Arriaga, CIPS, CCIM.  Adrian, a past Ambassador from the National Association of Realtors® (NAR) to AMPI and a member of the Texas Real Estate Commission,  is the currently  Chair of NAR’s Global Business Alliances Group. He brought greetings from NAR President. Ron Phipps. NOTE: AMPI and NAR signed a joint venture agreement in 2006. Under the agreement, AMPI members can legally use the word REALTOR®

The event was held at the Hacienda de Los Morales, in Mexico, D.F.

A cocktail-reception followed the inauguration. It was attended by over 300 people including political and real estate industry dignitaries.

Immediately before the TOMA the Mexican Section of The International Real Estate Federation (FIABCI) gathered for a short meeting. During our FIABCI meeting Adolfo Kunz made a review of all his years in FIABCI.. He fondly remembered the World Congresses held in Mexico in the 60’s and 80’s, and his wonderful experiences meeting dignitaries from all over the world in Europe, South America, Canada, and the U.S.A., and different business opportunities he encountered through his FIABCI Membership. Adolfo, an attorney, is a Past President of FIABCI Mexico and was a Deputy in Mexico’s Congress.

Author John Glaab CIPS is a founding member of AMPI Los Cabos. A Certified International Property Specialist he is active in the National Association of Realtors® Global Business Alliances Group.  John was recently appointed as a member of Amp’s International Relations Committee. for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Every transfer of Mexico real estate property MUST, by law, be made before a Mexican notary public.

The Mexican notary public is required to have a degree in law.  He must have a minimum of five years of legal practice, pass a rigorous examination and then be appointed by the governor of the state in which he/she resides.   The notary is legally responsible for the review of the prior deed and the tax and lien certificates.  The notary must draft the new deed, calculate the Mexico property taxes due and pay them.  Also very important, the notary is accountable for his/her actions through the state and national notary associations.

It is commonly believed that an attorney, in addition to the notary public, is required when buying property in Mexico.   This is not necessarily the case.  In fact it may make more sense to seek out a CLOSING AGENT to handle the many details of the transfer, such as ordering and reviewing the title investigation; obtaining the certificates and trust permits, interfacing with the buyer and seller, answering their questions and concerns in their native language, explaining the nuances of the transfer process; overseeing the payment of funds for these services and expenses; reviewing the deed to be sure names and addresses are correct; being sure it is registered in the public registry of property; making sure it is delivered to the buyer; providing tax receipts to the seller………….and more!

When these matters are left with the Notary Public to handle, they may not all get done, or get done slowly due to the work load of most Notaries.   When these matters are handed to another attorney to perform, they may be sandwiched in between criminal complaints, court appearances and other more remunerative activities.

A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues.   More and more there are closing agents throughout Mexico.   They are specialists in titles and transfers.

The role of the Mexico closing agent

An experienced Closing Agent is a key person in the real estate purchasing process. Hiring a good Closing Agent who understands the ins and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother.

The closing agent should be involved in drawing up a promise contract and reviewing all documents including title, certificate of no encumbrances, and  permits. A closing agent can also order a complete title search before the transaction reaches the notary public, which will save the buyer valuable time and money should there be a problem with the title.

The prudent buyer will always insist upon using a neutral third party closing agent to protect his or her interests.

Professional Closing Agents will have bi-lingual and experienced closing officers on staff to review the legalities of the transaction and to ensure that all the documents received are in order. Prudent buyers also enlist the help of the Closing Agent, who can oversee the permit process, review the draft of the deed being used in the transfer of title and order the title investigation, identifying any problems before the title has been transferred and money exchanged.

Finding a Trustworthy Closing agent

Clients should never hesitate to ask for details of the professional experience and references.  This is even more important when the real estate agent in the transaction is representing BOTH buyer and seller.  This is dual agency which is still common in Mexico.   In this case the buyer should definitely seek out his/her closing agent.

Questions to Ask a CLOSING AGENT: What exact services will you provide? What areas of law or real estate are your specialties? Can you provide an estimate of taxes and closing cost expenses? Will you order or conduct a title search? Can you provide at least three references?   Do you have experience with transfers to foreigners, Mexican bank trusts and foreign investment? How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?

Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and do the same homework as when researching a real estate agent. Ask for credentials and references. The more experienced the staff and in-house counsel the company has in handling foreign investment transactions, the more protection and safety the buyer should have in a Mexican property purchase.

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 THE www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

This months issue of VENTANA Magazine published an article on this topic written by … yours truly.  Many people think that there are very little regulations or that there are no Mexico real estate licenses available to realtors in order to help ensure safer transactions when investing in the Playa del Carmen real estate market.  But only recently, in the fall of 2009,  a new Professional Identification Number and Mexico real estate degree have been offered to the people practicing in these activities if successful in the qualification process.

(  Thomas Lloyd in Mexico City receiving the first Mexico Real Estate Degree  )

This is not a simple exam that is taken over the internet, but it is quite a complex process which resulted in only a handful of people in all of Mexico receiving such a degree.   The exam has over 180 detailed questions and was applied nationally in nearly 14 different cities.  Read more here Mexico Real Estate license .

“The degree was introduced to the industry in response to the consumers demand for a higher professionalism” states the Mexican Association of Real Estate Professionals.  The professional identification number and “cedula profesional” are issued at a national level, and are only granted to university degree holders.

The good news is that progress in Mexico is moving forward and  the real estate industry is keeping pace with new requirements and benchmarks.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

When buying real estate in Mexico you can focus all your time on the purchasing process and sometimes forget that you are moving to a different country and will need a visa.

For most of us coming and living in Mexico for a few weeks doesn’t cause any problems and you can get in with an FMT or as of May 1^st 2010 an FMM. This is the visa every tourist gets when entering the country.  Its one of those documents you get handed on the plane to fill in. This entitles you to stay for no more than 180days. In some case you can apply to extend this when you get close to the end.

When you want to stay in Mexico for longer periods of time and when buying property in Mexico you should apply for the non-immigrant FM3. This allows you to stay in the country for up to a year, close to the end of that year you should go back to your immigration office and apply to renew for another year.  This can be done for 5 years and once you have been on your FM3 for 5 years you can then change and apply for the FM2.

You can either come to Mexico on your FMT/FMM, go to the local immigration office of where you want to live and buy a property and apply there
or
If you don’t have time in Mexico you can go to your local Mexican consulate at home and apply there

I my self have applied for many different visas in Mexico and I now hold a FM2. So I will be talking about applying for a visa while in Mexico.

You have two options you can do it your self or get a lawyer to do it for you.

The Lawyer route:

This option is good for those:

• Who aren’t able to speak Spanish (or enough to get you through, I’ve seen many Americans and Canadians who can’t speak any Spanish going to immigration on their own, you may be lucky and get one of the officers who speak English but this will depend on where you are), or can’t go with some who does.
• Doesn’t have the time to sit and wait in the immigration office. (The last time I was there, I had to wait almost 3hours before it was my turn at the desk.. The offices usually open at 9/9:30am so get there before then so you are sure to be first or not have a long waiting time)
• Who don’t think they pass the requirements for the visa you are applying for.
• Who haven’t done this before and would like help.

One of the main problems I found with using a Lawyer is that in some cases they can charge you a large amount of money for something that really can just take you a few hours.

First you should go to your local immigration office and ask for the requirement check sheet for the visa you would like to apply for (more than likely it will be in Spanish but again depends on where you are). With this you can take your time and gather up all the documents you need.

I must point out that each Mexican States immigration office has different, processing times and requirements. Maybe not by much but its much better to have the check sheet for the office you are applying in. This will save you some painful hours waiting to be told you are missing something or you don’t need that document. Also they update the process often so you should make sure you have an up to date check sheet and application form.

For example I used to live in Manzanillo in the state of Colima on the pacific coast, there they don’t see many people wanting to apply for FM3 or FM2 but dealt mostly with ship captains. What I found here was that the application for an FM3/2 could take a while or be done in a day all depending on what mood the officers were in, but getting information was difficult as there was only three windows and you had to queue with everyone else just to ask a question.

I now live in Playa del Carmen and found that the immigration office is more geared towards foreigners coming to apply for visas. Here they have an information desk where you can get all your check sheets, application forms and any help with what you are looking for.

The officer here will after speaking with you decide if you need to go to one of the processing desks. This saves a lot of time and I wish that was available in Manzanillo when I was applying for my Married visa.

Next door to the Playa Immigration office is a small “shop” offering services like photocopying, letter writing, translations, photos etc. This is very useful as when I applied for my FM2 visa I needed three letters, one to say that I am married to my wife, one to say my wife is married to me and one to say what visa I am looking to get, for $100pesos each the gentleman working here typed these letters for me within 10mins and I was ready to go. I know that is a lot for 3 pieces of paper, but its all done in Spanish and covers exactly what you need. You could try searching for a template for each letter you need to save money.

You can also ask here for help on what documents you need, as he must see thousands of confused tourists come and go and knows exactly what you need to get your visa. Just make sure you use one of his services when asking him loads of questions, its only fair.

When you to buy a property in Mexico your best option for a visa is a FM3 rentista. This version of the FM3 is for everyone who wants to come and go to Mexico. Best when you want a holiday Mexico home and only want to be here for a few months at a time. To get a visa like this you have to prove that you either have a monthly income of $1000USD or have $12,000USD in a bank account. This is to prove that you can come to the country and don’t have to worry about money or turn to working. You can stay for one week or for the whole year if you want but you can’t work.

At the moment you will get a passport size book. A green one for the FM3 and a grey one for the FM2, but as of May 1^st 2010 these will change to ID cards. This is going to be a lot better as you are meant to carry your visa with you everywhere and keep a copy at home.  So with a card you can just put it in your wallet or purse and not worry about it.

To sum this up, If you have the time and patience, first get the check sheet for what you need spend a few days gathering your documents together and take a book and a bottle of water and go to apply for your visa. You will also find that you will have to go back a couple of times. I went in to apply for my visa, then to go back 3 weeks later to make sure it was all ok, sign a few forms, get my finger prints done and hand over some pictures (You will be told what size and type of photos you need) then wait another 10 days until going back for the third time with the payment and collect you visa.

-Robert Young

As non-Mexicans buying Mexico Real Estate, one of the first things you might look for (and should look for!) is an indication of a high level professionalism in the Mexico real estate agent you are considering to represent you in the process.  Back in the U.S. and Canada, and other countries, we know that a practicing real estate agent is required to hold a state issued real estate license, indicating a sufficient level of knowledge in the industry, as an official demonstration to clients that he or she is able to carry out such a transaction for you.  While there is no Mexico real estate license requirement for most states, you will be happy to know that recently a degree in real estate and a Professional Identification Number have been implemented in Mexico.  While the degree is currently not required, it shows that Mexico is moving towards a level of professionalism similar to what we are used to back home, and perhaps even higher.

If you do your homework, as a soon-to-be buyer of Mexico Real Estate, you quickly learn that in this country most states have no real estate license requirement, with the exception of Sonora and Nayarit.  If you continue to do your research, and make sure you find out something about the business culture you are about to participate in, you will also learn that other regulations to protect real estate buyers are not as well defined.  This will lead you to the conclusion that you need a well experienced, reliable, knowledgeable professional to guide you in the purchasing process. Next, you will ask for and check references, and ask for experience and evidence of professionalism (certificates, membership in  professional organizations such as AMPI, etc.).  While this process will continue to be necessary on your part as a buyer, the new degree will serve as a nation-wide indicator of professionalism and knowledge for the Mexico real estate agents and brokers who hold it, and could save you a few steps in all this research you have to do.

The Implementation of the New Mexico Real Estate Degree

The new university degree in Mexico Real Estate is a very recent step forward in the Mexico real estate industry.  Only this year, 2009, the Mexican Association of Real Estate Professionals (AMPI), managed to have the Mexican Federal Ministry of Public Education (SEP) implement the new degree.  This degree serves two purposes; one is to give professionals with years of experience directly in the field an opportunity to demonstrate their knowledge officially, and to earn a university degree to reflect their abilities; the other is to allow inexperienced university students to take a full 4 year course of studies in real estate so that they enter the field better prepared, and have solid base of theoretical knowledge on which they can begin to build experience.

The degree itself was implemented at the request of AMPI as a response to the lack of license requirements in the field.  Much of the work to set up the degree was done on a non-paid basis by AMPI.  Since the government has not been making requirements for official professionalism in the field, AMPI felt the need to respond and “professionalize itself.”

Obtaining the Degree through an Exam and Evidence of Experience

In the Mexico Real Estate industry, there are already a large number of professionals who have used experience to gain a thorough knowledge of the field, and have supplemented this with courses, diplomas and other forms of training.  They have made themselves highly experienced and knowledgeable professionals.  A part of the implementation of the new degree is to allow such professionals to earn the degree by demonstrating and re-enforcing the knowledge they have already acquired. For this purpose, an exam was created.  Experienced professionals can choose to take a preparation course, in order to review and preview the information required to complete the exam.  Even just to enter the preparation course, there a minimum experience requirement; La Salle University, for example, has a 3 year experience requirement.  The exam itself, administered as a joint effort by AMPI and CENEVAL, is a 5 hour exam, with 177 multiple choice questions, divided into 8 sections.  The first exam was administered early in 2009, in 16 different locations across Mexico.  The exams were administered simultaneously to increase test security, avoiding access to the questions before the exam at any location.  The exam was applied according to strict guidelines in all aspects to ensure professionalism and security.

For these professionals who choose to obtain the degree in this manner, the exam is only the first step. If they successfully pass the exam, they must also demonstrate direct experience in the industry.  This experience can be demonstrated, for example, through certificates, letters from their AMPI office, and documents evidencing that they have carried out real estate transactions, i.e. from notary publics, etc.  All documentation must meet strict requirements and is carefully evaluated.  Candidates who both pass the exam and demonstrate their experience successfully are granted the new degree in real estate.  As can be seen from these requirements, the guidelines and professionalism of the process guarantees that only experienced professionals can obtain the degree in this way.

University Course of Study

The degree will also be available as a regular 4-year university course of study at selected, reputable universities, both public and private.  This option is available for university students, usually entering from high school, wishing to prepare themselves professionally for a career in real estate.  While these students will not have the experience which they can only gain with time and participating in real transactions, the degree will give them a firm base of knowledge to begin their career.

The Professional Identification Number

Another element which has been implemented with this degree is a Professional Identification Number, or “cedula profesional” in Spanish.  This Professional Identification Number will be granted to each person who receives the degree, and only to those who receive the degree.  In Mexico the “cedula profesional”  is applied only for highly trained professions, such as doctors and lawyers.  The implementation of this “cedula profesional” for real estate brokers is an indication of moving towards the same level of professionalism as the fields of medicine and law.

The Future of the Degree and Requirements

There are two key differences between this new degree and real estate licenses as we know them from back home.  One is that the level of professionalism and involvement to acquire them is actually higher than real estate licenses in the U.S. or in Canada.  The process of obtaining the Mexico Real Estate degree is far more involved, and the test and documentation process is carried out on a more secure basis.

The other difference is that the degree in Mexico is not yet required.  For the moment, the new degree and Professional Identification Number are obtained on a voluntary basis.  In the future, AMPI hopes to move towards legal requirements, perhaps for the broker of each office to hold the degree, with the eventual hope that all who dedicate themselves to this industry will have the new degree.

Implications for buyers of Mexico Real Estate

While the degree is not yet a requirement, it indicates a movement towards a very high level of professionalism on an official level for the Mexico Real Estate industry.  It also serves as an current indication of this same high level of professionalism for the brokers and agents who have chosen to obtain, and demonstrated their ability to obtain the degree.  In these cases, the degree and Professional Identification Number are an official and reliable demonstration of what you as a real estate client would otherwise have to investigate in a more time consuming way; thorough knowledge and a high level of experience to protect your interests and guide you safely through your Mexico purchasing process.

TOPMexicoRealEstate supports the same values towards which AMPI is moving with the implication of the new degree; a high level of professionalism in the field, and continuous education and expansion of agents’ knowledge of the real estate industry to serve you, the clients, better.  One way in which this commitment was demonstrated was through the fact that Thomas Lloyd, founder and president of TOPMexicoRealEstate, was among the first group of Mexico Real Estate professionals to receive this degree.

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico’s leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company’s web site www.TOPmexicorealestate.com

Mexico Real Estate offers many great opportunities.  However, because of the fact that laws and processes are different here in Mexico, many non-Mexican buyers make costly errors because they don’t take the time find the information they need first.  In some cases when buying Mexico homes, the new buyers even make blunders that they would avoid back home – simply because of the uncertainty of being in a different business culture.  Based on their years of direct experience in the Mexico property market, a panel of experts from the TOPMexicoRealEstate NETWORK, “certified professionals that specialize in guiding new buyers through the Mexican purchasing process,” has identified the top 5 mistakes made by non-Mexican buyers.  The following is a compilation of their answers, giving a general overview of their answers for each of the five points, then giving their exact answers below.  Each mistake is followed by advice from the panel on how to avoid causing problems for yourself in that area.

The real estate experts who contributed to this article are:

Jim Scherrer – Puerto Vallarta Real Estate

Linda Neil – La Paz Real Estate

Mitch Keenan – Yucatan Real Estate

Thomas Lloyd – Playa del Carmen Real Estate

The top 5 errors non-Mexican buyers make are:

#1 Not surrounding yourself with reliable, experienced professionals

The panel’s answers point to this as the number one error that non-Mexican buyers make when buying Mexico Real Estate.  The key behind this is to find an experienced, reliable broker or agent.  After this, it is also necessary to find a notary public – again with knowledge and experience to do things right – and a Mexico title insurance company, among others. A reliable agent is central, as they can also help point you to other trustworthy professionals.

The panel’s answers are:

“Not using a reputable Agent/Broker, not using a reputable notary public, and using a Title Company.” – Mitch Keenan – Yucatan Real Estate

How can you avoid this error?

“Check with the USA Consul in Mexico. They have a list of recommended Notary Publics and Agents.” – Mitch Keenan – Yucatan Real Estate

“When you select an agent, make sure that the agent is member of AMPI, The Mexican Association of Real Estate Professionals.  Also, check references.  This agent is representing your purchase in a country where you are not familiar with the laws; you need to be confident that that person is.” -  Linda Neil – La Paz Real Estate

“These top 5 errors are only a few examples of the items and risks that a non-Mexican buyer must administer. There are hundreds of other topics that a buyer must address and decide upon; only through EXPERIENCE can teach us to look for these issues. The best way to avoid all of these mistakes and other errors in the purchasing process is to surround yourself with experienced players. It costs the same commission rate to hire an agent with 15 years experience vs. an agent with only 2 months experience.  If you are making a $200,000 dollar investment wouldn’t it make sense to hire someone with credentials and years of experience to represent you.” – Thomas Lloyd – Playa del Carmen Real Estate

#2 Buying from the listing agent and not finding an exclusive buyer’s agent

Even if an agent seems honest, reliable or experienced, no agent who is representing the seller can also represent they buyer fairly, since each one needs an agent protecting only their interest.

The panel’s answers are:

“The most common mistake I have seen are for new buyers to retain the services of a real estate representative just because he was advertising a property on the internet and had his email and phone number on a yard sign next to a property. I am surprised as how some non-Mexican buyers who are very diligent in their money investment decisions while in their home countries come to Mexico and will choose to retain the services of a real estate agent based on the fact that the agent is able to speak English.” – Thomas Lloyd – Playa del Carmen Real Estate

“Buying anything from a listing agent or the sales agent representing the developer; their loyalty is to the seller and they have a fiduciary duty to that seller. No matter how honest, nice, and sweet that agent may seem, it would be a conflict of interest for him to discuss any negatives about the property or to truly help the buyer in getting the best price and contract protection.” – Jim Scherrer – Puerto Vallarta Real Estate

How can you avoid this error?

“Use a professional buyer’s agent exclusively representing buyers and having no listings.” – Jim Scherrer – Puerto Vallarta Real Estate

“The agent who represents you as a buyer cannot represent the seller as well.  Agreeing to and signing an agency disclosure agreement can serve as further protection.” – Linda Neil – La Paz Real Estate

#3 Not carefully considering the implications of different property types, locations, etc.

Different property types have different have various considerations to be made.  Especially the area of pre-construction purchase of Mexico Condos needs special attention; preconstruction offers excellent opportunities, but for the buyer’s protection, the right steps need to be followed.

The panels answers are:

“Buying a pre-construction Mexico Condo with a payment schedule based on the calendar.” – Jim Scherrer – Puerto Vallarta Real Estate

“Buying in a remote (and supposedly growing) area in order to save money. As everyone knows, the three main rules to buying real estate anywhere are location, location, and location. During periods of recession and/or slow growth, these remote areas are the first to drop in value and the last to recover. With current economic conditions the way they are, it may be many years before the remote areas see any appreciation in value.” – Jim Scherrer – Puerto Vallarta Real Estate

“You should not attempt to buy Ejidal property. Ejidal property offers considerably lower prices, but it must be converted to private property before it can be sold.” – Linda Neil – La Paz Real Estate

“When purchasing in preconstruction, to allow for some money to be held back until the legal possession has been delivered. Many times the buyer will have paid out the entire value of the property, have received the physical possession, yet remain waiting for the developer to deliver the legal possession.” – Thomas Lloyd – Playa del Carmen Real Estate

How can you avoid these errors?

“The buyer needs an agent that knows how to write purchase contracts that protect the buyer’s initial deposit and progress payments. They should be prepared with payment schedules based on construction milestones, delivery dates, closing date, etc. as opposed to calendar dates. They should also have construction delay penalty charges, contingencies for 100% refunding upon failure to perform, and escrow protection.” – Jim Scherrer – Puerto Vallarta Real Estate

“Include only private property in your property search.” – Linda Neil – La Paz Real Estate

#4 Not reviewing contracts and documentation or following processes properly

Reviewing all documentation and following processes properly is necessary in any real estate purchase.  However, this is especially true when buying Mexico Real Estate, where regulations are not as well defined to protect the buyer, and taxation and other processes follow different rules than what buyers are used to in their home country.

The panel’s answers are:

“Many first time buyers do not understand the implications of the Capital Gains Tax issues. They believe that capturing a low acquisition cost on a property will decrease their closing costs expenses but forget to understand the more expensive capital gains tax levied against profits on the sale of the property.” – Thomas Lloyd – Playa del Carmen Real Estate

“A potential risk is not to check if you are dealing with the legal owner of the property.” – Linda Neil – La Paz Real Estate

“Assuming everyone they deal with has the same business ethics as they are accustomed to in the US or Canada, thereby not paying extremely close attention to ALL documentation they are signing.” – Jim Scherrer – Puerto Vallarta Real Estate

“Not including a clause in their purchase sales agreement to allow for the first beneficiary (the buyer) to have the voting rights transferred from the fiduciary for condo association meetings.” – Thomas Lloyd – Playa del Carmen Real Estate

“Some non-Mexicans believe they can hold property with a private contract and avoid paying closing costs and taxes. They are placing much of their hard earned money at risk by not receiving a title duly subscribed with a notary public and filed in the public registry.” – Thomas Lloyd – Playa del Carmen Real Estate

“Depositing money in an agent’s or seller’s personal account.” – Mitch Keenan – Yucatan Real Estate

How can you avoid these errors?

As Thomas Lloyd points out above, “these top 5 errors are only a handful of examples of items and risks that a non-Mexican buyer must administer.”  It is almost impossible for an new buyer to manage, and often even be aware of, all of these considerations.  Therefore, it is of key importance to have a reliable agent whose experience gives them the necessary knowledge of the various contracts, processes and documents involved.  Additionally, the panel points out the following:

“Never deposit money or give money to an agent or a seller without verifying that the agent has a verified earnest money account or escrow account.  It is always a good idea to spend the extra $500 bucks to set up an escrow account with a title company to hold the deposit.”  – Mitch Keenan – Yucatan Real Estate

“Deal only with the legal owner of the property or a legal power of attorney.  It is necessary to request, receive and review a copy of the title.  For cases such as this, your agent will have to know Spanish, or you will need to get a certified translation.  You should also have a title investigation, and buy title insurance.  Even if the prices are high, it is worth avoiding risks involving the title.”  – Linda Neil – La Paz Real Estate

#5 Rushing a Decision

Your Mexico real estate purchase is one of the most important decisions you will make, whether it is property for your home, or for an investment.  Rushing into a decision can have undesired, long term consequences.

The panel’s answers are:

“Being pressured into a hurry up decision.” – Mitch Keenan – Yucatan Real Estate

“Spontaneously buying on the beach, having no idea of the many magnificent properties available with better views, neighbors, lifestyle, etc.  than can be found on the beach.” – Jim Scherrer – Puerto Vallarta Real Estate

How can you avoid this error?

“Never be pressured into a deal. Take your time do your due diligence.” Mitch Keenan – Yucatan Real Estate

If you feel you are being pressured, or not being presented with all the best options, also see the advice for error #1 “Not surrounding yourself with reliable, experienced professionals,” and error #2 “Buying from the listing agent, not finding an exclusive buyer’s agent.”

For further information about buying Mexico Real Estate and avoiding costly errors, contact a Mexico Agent in the TOPMexicoRealEstate NETWORK; OUR EXPERIENCE; thousands of Property transactions & years of assignments in Mexico AT WORK,  PROTECTING YOUR INTERESTS.

Buying Mexico Real Estate can be an exciting experience, and one of the most important decisions you will make.  For this reason it is very important to know the ins and outs of buying real estate in Mexico, being familiar with the laws and the processes.  A key factor to consider is that in Mexico, the law does not offer the same regulations to protect buyers as in other countries. This having been said, buying Mexico Real Estate can be done safely, if the right steps are followed.

“Buying property in ANY country can be stressful,” observes Linda Neil, real estate expert from La Paz, Baja California, “A property investment in Mexico can be just as safe and secure as in the U.S. or Canada, if it is done correctly!”

A panel of experts from the TOPMexicoRealEstate NETWORK, “Your Expert    Property-Finders,” agrees that the most important step in avoiding the risks is selecting the right agent – an agent with experience and knowledge.

“The most important key player is an agent or broker with many years of experience,” says Thomas Lloyd, founder and president of TOPMexicoRealEstate.  “You are not looking for someone who knows where the best restaurants or bars are located, you want someone who has been on the ropes, someone who has witnessed problems or obstacles in previous transactions so he knows what to look out for.”

In the following interview, some members of TOPMexicoRealEstate’s panel of experts discuss the main risks involved, which they have seen during years of experience, and give advice on how to select an agent who can help you avoid these risks.

What kind of risks can buying real estate in Mexico involve? 

Here the brokers highlight several points in the purchasing process which buyers should watch, including property types which can pose higher risks if proper research is not done.  These risks are tied to, and made more significant, by the fact that regulations in the Mexico Real Estate industry are not as well defined as in other countries.

Mitch Keenan – Merida Real Estate

The largest risk is to NOT use reputable professionals. Interview several real estate agents and notary publics. Ask for references and check them. Raw land or raw beach is a more risky purchase than a home that has other homes on all sides of it. To mitigate that risk, use a title company. Additionally, when a fideicomiso is  issued by the bank to hold title, it does provide another layer of protection to the Buyer.

Jim Scherrer – Puerto Vallarta Real Estate

The risks are minimal when the economy is booming. During those times, the main risk is just paying too much. However, during periods of recession the risks are numerous. The greatest risk would probably be in buying pre-construction developments with no assurance of completion.

Linda Neil – La Paz Real Estate

Mexico Real Estate agents are not obligated by the same regulations in Mexico.  They do not have the responsibility to disclose all problems or defects to buyers or sellers.  The fact that the government does not regulate real estate to the same extent as in other countries poses higher risk to buyers.

Thomas Lloyd – Playa del Carmen Real Estate

The regulations in Mexico are not as sophisticated in protecting the real estate buyer as compared to our home countries.  For example, there are no disclosure laws regulating what information needs to be revealed to a buyer of real estate.

What does a buyer need in terms of information in order to avoid/reduce these risks?

Each of the brokers mention some specific steps to be taken to avoid specific risks.  However, as Lloyd mentions, “There are so many areas and risks that need managing it would be impossible for a new buyer to understand or remember to address each of these items.”  The key factor here is finding an experienced, knowledgeable professional who is very familiar with the details of these issues, and can guide the buyer through the process.

Jim Scherrer – Puerto Vallarta Real Estate

The buyer needs an agent that knows how to write purchase contracts that protect the buyer’s initial deposit and progress payments. They should be prepared with payment schedules based on construction milestones, delivery dates, closing date with “escritura”, etc. as opposed to calender dates. They should also have construction delay penalty charges, contingencies for 100% refunding upon failure to perform, and escrow protection.

Linda Neil – La Paz Real Estate

To avoid the risks involved in the lack of regulations is finding a buyer’s agent who adheres to principals and ethics.  One way to do this is to work with a agent who is a member of AMPI, the Mexican Real Estate Association; AMPI is connected with NAR (USA) and CREA (Canada), and its members follow a Code of Ethics.

Thomas Lloyd – Playa del Carmen Real Estate

Basically, I believe that it is very important that the buyer retains the services of an experienced broker. There are so many areas and risks that need managing it would be impossible for a new buyer to understand or remember to address each of these items. But, if you associate yourself with a person who is dedicated to such activities, a person who has years of experience and has witnessed and participated in hundreds of Mexico real estate transactions, such a person is an invaluable person to have on your team, taking care of your interests and monies.

What should the buyer look for in terms of an agent?

Having established that a good agent is the best way to avoid the risks involved in buying Mexico Real Estate, the brokers point out some elements to look for.  Some of the common points are experience, honesty, loyalty, thorough knowledge of the market, knowledge of Spanish, and experience in Mexico.  Most of these factors may not be measurable in a concrete way.  Keenan, Scherrer, Lloyd and Neil point to some indicators of these traits, which include certifications, licenses, degrees – Mexico now offers a real estate degree with a professional identification number, and, of course, references and testimonials (for these to be used well, there should be several, and they should actually be checked!) .

Mitch Keenan – Merida Real Estate

References. Lots of them. Check them.  Also years in the business. Reputation in the community. A license or career in real estate in the USA, Canada, Mexico or Europe. Choose an agent who has made a career out of marketing real estate. An agent who has taken the classes, received the certifications and has worked to stay on top of their field. Choose an agent that has lots of return clients. Find someone that you feel comfortable with on a gut level. If your gut is saying, “careful something stinks here!” Listen to your gut! Do your due diligence. Check references.

Jim Scherrer – Puerto Vallarta Real Estate

 A buyer’s agent exclusively representing buyers has “no axe to grind.” A true buyer’s agent has no listings and no biases toward one development over another, i.e., no fiduciary duty to any seller or developer. The buyer’s agent must be honest, loyal, fully knowledgeable of the market, familiar with all the key players in any real estate transaction, and an experienced business professional.

Linda Neil – La Paz Real Estate

A key step in avoiding various risks is finding a buyer’s agent, who represents only your interests.  An agent who attempts to represent both the buyer and the seller (called “dual agency”) will have conflict of interest; while the buyer is looking for the lowest reasonable price and all the benefits possible in his interest, the seller is looking for the highest reasonable price, and as many benefits as possible in his interest.  It’s not possible for one agent to represent both of these interests.  Besides reducing risks of not being informed of potential problems, hiring an exclusive buyer’s agent will ensure that the agent will search the entire market available, not just properties they are listing.

Some characteristics you should look for in your agent are: professionalism, knowledge and experience – education can be one indication of this, punctuality, which is sign of commitment, someone who listens to your concerns and needs, someone who looks ahead and predicts complications, honesty and cooperation.

Thomas Lloyd – Playa del Carmen Real Estate

There are several items a new buyer should insist from an agent or broker who he hires to represent him. Remember, you want someone who is going to protect you and your interests.

How many years has he lived in Mexico? Does he speak Spanish? How many years has he been working in the Mexico real estate industry? How many real estate transactions has he administered or participated? What credentials does he have? Is he certified? Licensed? Or does he have a Mexico real estate degree? The more years and experience a person has been living and working in Mexico is the strongest asset you can find in your representative. Don’t forget to ask for testimonials, (the more the better).

Who are the key players that will help you reduce your risk when buying in Mexico?

The brokers name certain professionals needed to make the process go smoothly, including a title company, a mortgage company advisor, a notary public, and a Mexican attorney.  Of course, just having these people around will not help.  They must experienced, knowledgeable and reliable.  As the panel points out, this points back to the choice of agent, who is THE key player; the right agent will also be able to help point you to other reliable professionals.

Mitch Keenan – Merida Real Estate

Notary Public. Title Company. Bank, for the fideicomiso. Broker or agent.

Jim Scherrer – Puerto Vallarta Real Estate

Of course, the main key player is the buyer’s agent. After the agent, a mortgage company adviser can be very important; after all, if the mortgage company won’t approve a loan, the purchase is probably too risky! Notary Publics will assure the paperwork and closing details are accurate, however they have no input into contract negotiations. Of course, the agent must be at least somewhat familiar with Spanish and should work closely with an experienced Mexican attorney since all contracts are written in Spanish

Thomas Lloyd – Playa del Carmen Real Estate

The most important key player is an agent or broker with many years of experience. You are not looking for someone who knows where the best restaurants or bars are located, you want someone who has been on the ropes, someone who has witnessed problems or obstacles in previous transactions so he knows what to look out for. A sharp lawyer is your second best ally. Again the more years of experience in real estate law the better.

TOPMexicoRealEstate NETWORK; Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely

A milestone and historic event occurred in Mexico real estate this August Recently, the AMPI association was able to implement a new degree in the Mexican universities and obtain the classification of a new professional license for Mexico Real Estate professionals The new university degree is being offered as an option in the universities in response to the Mexican authority's concerns that improved standards and better training should be required for real estate consultants and professionals in Mexico Fernando Gonz lez Salazar, Director of the Professional License Department ofAMPI pointed outThe market and clients, demand true professionals, specialists in the commercialization of real estate with recognized studies and a professional license authorized by a federal government body.”

The new professional title is officially authorized and administered by the SEP (Secretary of Public Education), and is in response to the request from the consumer market The title is offered through a combination of a professionally applied exam of high security – and the requisits of demonstrating ample experience in the industry Or, also, the title can be obtained from attending 4 years of courses at several universities selected throughout Mexico

Antecedents

“We have estimated that there are nearly 19,000 people practicing within the Mexico real estate industry.” Mentioned Lic. Laura Flores, coordinator of the process EGATSU-CI within AMPIOf these approximately 2,300 are associates of the AMPI organization . Before the new title of Property Commercialization was presented, Mexico real estate licenses were not offered although certifications were available, such as those offered by CONOCER organization and by AMPI chapters. In the state of Sonora for example, a license to work in the industry was available and required The license was available for those who realized the test and obtained the certification.

A group of associates in the national office of AMPI have been working with great dedication for the past several years to change into reality the idea of a Mexico real estate professional license And in doing so, increasing the level of service standards in the Mexican real estate industry.AMPI contributed many man hours, knowledge and dedication from key members of their organization to ensure this milestone achievement was accomplished In July of 2009, the first Mexican Real Estate Title and Professional License was presented and delivered to Thomas Lloyd CONGRATULATIONS to AMPI, to CONOCER, to SEP, to all of the efforts and dedication from many people in the industry, and to Thomas Lloyd for having the opportunity to participate in this milestone event

Beatriz Lozano, “TOP Mexico Real Estate NETWORK; Mexico's leading specialists for finding and purchasing Mexican properties safely !” (512) 879-6546 or the company's web site www.TOPmexicorealestate.com

An important aspect of purchasing real estate in Mexico is finding the right brokerIt is nota requirement to have a Mexico real estate license, so anyone can sell real estate. However, there is a professional association which adheres to ethical standards. This association is called A.M.P.I. (The Mexican Association of Real Estate Professionals) and is recognized by NAR (National Association of Realtors in the USA). Since real estate is a major investment, it is important to choose a broker that forms a part of this association to assure you are dealing with a reputable company in the Cancun Real estate market or any region throughout Mexico.

A good broker should respond to your inquiries and as you build a relationship, you will determine if this person will do the best job for you. It is very important that you find a broker that has extensive experience working with non-Mexican buyers, as the process is much more complicated.

Once you find a broker that you feel will do the best job for you, stick with that broker. Provide them with as many details about your ideal property and price range so he/she can offer you appropriate options. Working with one good broker will streamline your search, saving you lots of time and effort.

Consider using a buyer s broker. This is a broker who concentrates on working with buyers to find what they are looking for. Most brokers are listing brokers, who essentially work for the seller. They spend much of their time hunting for properties to list and their first goal is to sell you their listings.

A buyer s broker is accustomed to showing properties from many sources with the goal of finding the right property for their client. Your buyer s broker will guide you through the entire Mexico purchase process, beginning with the property search as well as closing and post closing assistance.

*Services of a buyer s broker do not cost you more as commissions are built in to the sales price and are shared by listing brokers.

What you need to know before making important decisions about Mexico Real Estate.

Did you know that real estate licensing in Mexico is not mandatory That anyone can sell real estate without having to go through training specific to the field There just recently became available a program to obtain a Mexico real estate professional degree and license but again, this is not mandatory. Yes, unfortunately this is all true. So how can you, as a consumer, protect yourself in such an unregulated market

Even though the field is not yet regulated, there is an association that was established to ensure good business ethics among its members. This association is called A.M.P.I (The Mexican Association of Real Estate Professionals) A.M.P.I. National was founded in 1956 in Mexico City with the intention to raise the technical level of the profession and establish codes of ethical business practice. This group is diligently pursuing the matter of licensing as well as ongoing training requirements for the real estate field.

This group has been striving towards a higher level of professionalism and has been recognized by NAR (National Association of Realtors) in the USA. Because of their high standards of ethics, A.M.P.I. members are now recognized as NAR International Affiliate Members. A.M.P.I. is also a member of ICREA (International Consortium of Real Estate Association) an alliance of leading national real estate organizations in the world s major marketplaces.

The constant pursuit for professionalism in the real estate field, has led to the development of courses that members can now take and one day such courses will be a requirement to receive the real estate license. For example, this year in the Cancun real estate region, the A.M.P.I. organization will sponsor a six day course for C.I.P.S (Certified International Property Specialist) as part of the ongoing training for members.

As professional Mexico brokers and agents in the market place, we get to see first hand some of the questionable practices of unprofessional independent orpart time brokers and it is frightening to see the risk unsuspecting consumers are exposed to. Many foreign consumers are unaware that the real estate profession is not regulated. You should always investigate the background of a broker before entrusting them with your business. Beware, some brokers may use the A.M.P.I. logo without being a member of the association. Some may even use the REALTOR logo if they were a licensed broker in the US, but they may not be a member of A.M.P.I. Selling real estate in the U.S. is very different from here in Mexico, so being a REALTOR is not really of great benefit for the consumer.

In hot real estate markets in Mexico, such as Cancun and the Riviera Maya, it is common to find waiters, taxi drivers, etc. moonlighting in real estate to try their luck at making a hefty real estate commission. These part timers may not have bad intentions but their lack of experience could result in a costly mistake for you.

There are still some horror stories from buyers of pre-construction developments throughout Mexico. In many of these situations, the buyer bought directly from the developer. Many consumers think that if they buy direct and avoid a broker, they will get a bigger discount. Unfortunately, that is not the case. There is always a commission paid. If there is no broker, then the commission is paid to the in-house sales staff that works directly for the developer and represent his interests. Without your broker, there is no one looking out for your interests. It is especially important in the current market to always have a knowledgeable broker, one who can recommend developments that are safe for investment. There are so many new pre-construction Mexico condo projects on the market which creates the possibility that some of them will not complete construction. Your broker will know the factors that are important in determining the risk involved based on the developers track record, marketability of the project, guarantees to the buyer and market conditions that affect sales.

Since the boom of foreign buyers in the last few years, professional brokers have realized that the way to do business is by transparent transactions. Many have realized that we have to adjust the Mexico purchasing process to one that the foreign buyer understands and gives them the greatest protection.

It is unfortunate for both buyers and professional brokers, that many brokers in Mexico still have not adopted transparent business practices. This not only puts the consumer at risk but stories of fraud and deception always come back to haunt the real estate field. Thankfully, A.M.P.I. continues to push forward to find ways to better protect and educate consumers to ensure the safety of their investments.

There are fewer fraudulent sales every year, but they still happen. Buying real estate is one of the biggest investments you will ever make. To make sure you are working with an A.M.P.I. professional go to http://www.ampi.org/ Don t be afraid to ask for references and do check them.

So, you ve reached a point in your life where you think that you ve learned a little about business, finance, contract negotiating, real estate, etc. and have at least a layman s knowledge of law pertaining to each. Being that savvy, you might also be aware of the incredible retirement locations in Mexico and the values south of the border; furthermore, you might even be considering Mexico as your retirement destination. If so, you might as well forget everything you ve learned and leave your law degree at home!

Mexico, as beautiful as it is, has a somewhat different way of doing business and a completely different set of laws. Additionally, all legal transactions, including Mexico real estate transactions, are done in Spanish. Therefore, for those of you that may be considering locations in Mexico as possible retirement destinations, the following information should give you some insight as to how the Mexican real estate industry works, list some of the possible pitfalls, and most importantly, give you the guidance required to assure a pleasant and safe experience.

In 1984, we made our first Puerto Vallarta real estatepurchase; a condominium in Mismaloya, about seven miles south of town. Our second purchase, two years later, was the adjacent condo. A year later, we removed the wall between the two condos and remodeled them into one very spacious three bedroom condo. For thirteen years, while still working in Houston, we thoroughly enjoyed visiting Vallarta two or three times a year.

At some time after the purchases of the two condos, we noticed that our original escrituras (legal property documentation similar to a title or deed that is held in a fidecomiso or Mexico bank trust) showed the property values to be about one third of what we actually paid for them. When we inquired about the discrepancy, we were told that the lower values were used in order to reduce our annual property taxes.

It wasn t until many years later, when we decided to sell the condo, that we learned that Mexico capital gains taxeswere due on the huge difference between the selling price and the documented purchase price. Ouch, we owed substantial taxes on a paper gain, when in fact; there was very little real gain! We then learned that the condo developer entered the extremely low sales prices on all the escrituras in the condo complex in order to evade paying substantial capital gains taxes. As we later learned, the developer could have entered the selling price, the appraised value, his cost of construction, or just about anything imaginable into the escritura, and we, being the na ve Americans that we were, were at his mercy!

Upon the sale of the Puerto Vallarta condo, we bought a beautiful new mountainside villa with a panoramic view of Banderas Bay, El Centro, and the Sierra Madres. We saw the new villa advertised in one of the local magazines and asked our realtor friend to show us the property. He showed us what seemed to be every property in town, before reluctantly taking us to see the villa in the magazine. Some time after buying the villa, we learned that our realtor friend received only 10% of the commission on the sale because that was all the listing agent was willing to pay. The listing agent ran the ad in the magazine and didn t feel that an agent representing a buyer was necessary in order to sell this beautiful new villa. Therefore, our agent spent a couple days showing us nothing but Puerto Vallarta listings administered by his agency before caving in to our demands and taking us to the villa of our dreams; one that we have thoroughly enjoyed for more than a decade.

These experiences revealed the tip of the real estate iceberg and after living here for ten years, we've finally been able to expose the entire iceberg and share some of the details below.

To begin with, there are no Mexico licensed real estate brokers or agents in Mexico! In fact, there is no mandatory licensing for real estate agents in all of Mexico because the Federal legislation process has yet to accomplish it and therefore such legislation remains in limbo. In Puerto Vallarta, where there are in excess of 80 real estate agencies, there are probably more than 500 real estate agents with minimal qualifications. With the booming real estate market and economy that exists today, it s quite obvious why we have such a diverse group of agents and brokers in Vallarta.

In order to have some degree of continuity from agent to agent, a voluntary association for real estate personnel exists in various areas of Mexico. The Asociacion Mexicana de Profesionales Inmobiliarios A.C., known as AMPI, is quite active in Vallarta with the membership of approximately 50 of the 80 real estate agencies in Vallarta. Although membership in AMPI is not compulsory and has no bearing on the capabilities of the agents representing the buyers or sellers, it is considered to be the standard bearer for listing agents in the area.

A second real estate association, mainly consisting of Mexican agencies based in the Vallarta area, is Asociacion de Profesionales Inmobiliarios de Vallarta A.C., known as APIVAC.

These associations schedule periodic conferences, conduct educational programs, and hold various meetings where they attempt to keep their members and the public current on activities in the area as well as changes in the Mexican law as it pertains to real estate. They have codes of ethics and they do attempt to establish uniform sets of operating policies and procedures, some of which are in writing, others understood but not documented. They bring real estate personnel together where their members voluntarily agree to abide by their organizations statutes and codes of ethics while attempting to operate with some degree of continuity and professionalism. For sure, these associations are better than nothing but still not to be confused with associations such as the National Association of Realtors or NAR in the US. Dual agency disclosure, designated agency, full disclosure, confidentiality, imputed knowledge and notice, implied knowledge, fiduciary duty, loyalty, and vicarious liability are foreign concepts to the majority of real estate agents in Mexico. Consequently, misleading or inaccurate statements often made by many of the agents can put both the buyer and seller in intolerable predicaments in Mexico.

Although AMPI and NAR do have a working relationship, one example of the differences between AMPI and NAR is that NAR provides its member agencies with standard statewide listing forms, pre-qualification forms, Mexico escrow account and earnest money forms, standard purchase agreement forms, letters of intent, etc. In Vallarta, there are no such forms provided by AMPI or APIVAC. Each real estate agency has its own listing form or uses a form provided by an outside privately owned publisher, which clearly depicts the listing agent as receiving 100% of the commission upon sale of the property. Also, NAR has written and enforceable guidelines regarding the handling of commissions and the sharing of commissions between the selling and buying agents. Although there are guidelines in Mexico for real estate commissions, they are still flexible, and to some degree negotiable with the seller. The listing agent can then negotiate commission sharing with the buyer s agent.

All other forms vary from agent to agent and are not necessarily written in the best interest of the buyer. Also, most forms and contracts for North Americans are in English; however the Spanish version is the only document that has any legal standing in Mexico. Therefore, regardless of what you read in English, a Spanish speaking Mexico attorney should always represent you along with your agent.

Another major difference between the Mexican based associations and NAR has to do with the Multiple Listing Service or MLS. In the States, the MLS is controlled and monitored by NAR and is available to all NAR agents. In certain Mexican cities, including Vallarta, there is an MLS; however it is not controlled by AMPI or APIVAC. Instead, it is privately owned and operated by a local publisher and is available for property searching to the public at no charge. AMPI members are able to list their properties on the Vallarta MLS, with the general public as well as the other AMPI and APIVAC members having access to the listings.

Once you understand the inner workings of the real estate industry in PV, you need to learn a little about Mexican real estate law. It can be quite complex regarding trusts, escrows, mortgages, treatment of taxes, etc. and is often open to interpretation by a state appointed attorney, known as a notario. A small percentage of the realtors in Vallarta have a fair understanding of Mexican law as it pertains to real estate transactions; however the vast majority of them are sorely lacking in this field. Even with little or no knowledge of the law, they will be anxious to advise you, right or wrong; therefore, the best law to follow is caveat emptor, or buyer beware!

Because of the many pitfalls that a buyer can encounter while purchasing real estate in PV, we learned over twenty years ago that it is wise to interview realtors with scrutiny, keeping in mind that most all will be promoting their own listings first and meeting your needs second. It s just human nature and with virtually no control in Mexico, it s pretty much assured. Also, because almost 100% of them have listing agreements with the sellers, they are legally bound to act in the best interest of the sellers, and not necessarily in the buyer's best interest. Because the buyer usually has no contractual agreement with the realtor, he will in all probability get theshort end of the stick in this conflict of interest.

Of all places, in Mexico you should select an agent that is 100% dedicated to helping you find the property that meets your needs and satisfies your requirements; preferably, a contractual agreement with an agent with no listings, no axe to grind, no ulterior motive, and is exclusively representing buyers and their best interests.

A true buyer s agent in PV should have no property listings, should have complete access to the Vallarta MLS, should know the areas and growth trends in and around Vallarta, should be able to professionally negotiate on the buyer s behalf, should have a decent understanding of Mexican real estate law, should have a working relationship with the local Mexican notarios, real estate attorneys, escrow and title agents, mortgage bankers, insurance agents, inspectors, appraisers, and lastly, your representative must have a thorough working knowledge of the local real estate industry and understand the idiosyncrasies associated with it.

Buying your dream home or your Puerto Vallart beachfront condo should be one of your best experiences, however without due diligence, it can be a nightmare. Obtaining an exclusive buyer s agent with 100% dedication to you is a prerequisite for assuring a pleasant beginning of your retirement in Paradise.

Author Jim Scherrer has bought and sold real estate in Puerto Vallarta for almost a quarter a century and has made Vallarta his permanent residence for over ten yearsA retired entrepreneur from Houston with an engineering degree and business background. He was a co-founder of a Houston based manufacturers' representative firm almost 30 years ago. Current member of (REBAC) real estate buyers agent counsel and (NABEA) national association of buyers exclusive agent. He is the owner broker of Puerto Vallarta Real Estate Buyers Agents. For more information (512)-879-6546 www.TOPmexicorealestate.com

“Where 12 TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

As we all approach retirement, we often dream of someday owning a piece of Paradise, somewhere in Florida, Arizona, Hawaii, or even retiring in Puerto Vallarta; someplace with a climate conducive to kicking back and enjoying life to its fullest, year round.

To more than 50,000 retirees, Puerto Vallarta, located on the Mexican Riviera along the Pacific Ocean at the same latitude as Hawaii but six hours closer and with a lower cost of living, has been selected as their primary or part time retirement destination. Unlike the arid zones of Arizona, magnificent ocean views are available everywhere in Vallarta. Unlike the flat land and low elevations throughout Florida, the Sierra Madres provide the back drop to all of the Vallarta area providing a beautiful array of tropical flora and fauna.

The city of Puerto Vallarta lies on the innermost part of the 25 mile diameter Banderas Bay. The total land perimeter of the bay is approximately 60 miles, however only about 40 miles of shoreline is available for foreign ownership. This available land extends from Mismaloya, 10 miles south of Vallarta, to 25 miles north of Vallarta near Punta Mita in the state of Nayarit. An additional stretch of Pacific Ocean shoreline extends about 15 miles north of Punta Mita with certain portions available for foreign ownership, thus providing the total Greater Puerto Vallarta area roughly 55 miles of beachfront property.

With Greater Vallarta s large area of magnificent land, its climate similar to that of Hawaii, and a pro-growth Mexican government with many new investment incentives, the area has virtually exploded with new residential construction and consequently, with new Mexico real estate agencies. Aside from re-sales, these listing Mexico Real Estate agents, are currently marketing in excess of 100 new condominium complexes containing more than 7,000 new condominiums under various phases of construction. An additional 20,000 condominiums are in the conceptual or planning stages and are scheduled for construction during the next 15 years.

In order to promote these Puerto Vallarta real estate properties, there are currently over 80 listing agencies serving the area with approximately 500 agents, all having a fiduciary duty to the developers and property sellers. That being said, in order to avoid a conflict of interest, they must pay their dedication and loyalty to those with whom they have contractual agreements and represent; the developers and sellers. Of course, these Mexico real estate agents will do everything within their power to sell one of their own listings first, prior to considering the listings of others, in order to satisfy their clients as well as double their own commissions.

Now that we have established that the area in and around Paradise is huge, the quantity of new villas and condos is overwhelming, and 500 Mexico real estate listing agents are putting forth their best effort to please their clients, the sellers; certain questions

arise. How in the world do visitors to the area go about locating their retirement in Puerto Vallarta destination without searching through 80 agencies What assurances do the prospective buyers have that they are getting exactly what they want, in the location that best suits their objectives, and at the best price available How, in Mexico where all legal contracts are in Spanish and the Mexico real estate laws are somewhat different, can the prospective buyers be assured that they are being treated fairly when the Mexico real estate listing agent is representing the developer or seller

To answer those questions and for numerous other reasons, the use of a Mexico buyer's agent is a prerequisite for any foreigner considering the purchase of real estate in Puerto Vallarta. There are a few agencies in the Greater Vallarta area that claim to be Mexico buyer's representatives; however most of them also have listings within their agencies. In order for prospective buyers to be absolutely confident that they are receiving 100% loyalty and dedication, they should attempt to employ the services of an agency with absolutely no listings, no biases, and no ulterior motives; one who knows the area well, that has access to all listings, and that has the legal team, property inspectors, appraisers, mortgage bankers, Mexico escrow agents, etc. working on the buyer's behalf.

Agents that exclusively represent buyers are quite common in the US and Canada, however they are few and far between in Mexico Such agents do request signed contracts with the buyers stating that they are acting on the buyer's behalf, however there is generally no charge to the buyer since commissions are shared by the listing agent.

Listed below are some of the benefits associated with using an Exclusive Buyer's Agent in Mexico:

Exclusive Buyers Agent- Represents no sellers and has no listings

EBA- Avoids dual agency and conflicts of interest

EBA- Owes complete fiduciary duty and loyalty to buyer

EBA- Maintains buyer information as strictly confidential

EBA- Has access to all properties on the market

EBA- Is unbiased in showing all properties available

EBA- Conducts an objective comparative market analysis

EBA- Thoroughly researches property pros and cons

EBA- Obtains appropriate inspection reports and appraisals

EBA- Strives ethically to gain bargaining advantage for buyer

EBA- Negotiates for buyer to optimize purchase agreement

EBA- Obtains most favorable legal and financial professionals

EBA- Prepares contracts in Spanish with accurate English translations

EBA- Works with 100% buyer dedication throughout entire process

EBA- Charges the buyer no fees for representation services

EBA- Often saves the buyer time, money, and provides peace of mind

In summarizing, the prudent buyer will always locate and use a Mexico Exclusive Buyer's Agent when searching for his/her retirement residence in Mexico; where caveat emptor, or buyer beware, is the rule to follow. In so doing, the retiree will be assured a stress free and enjoyable first retirement experience in Paradise.

Author Jim Scherrerhas bought and sold real estate in Puerto Vallarta for almost a quarter a century and has made Vallarta his permanent residence for over ten years. a retired entrepreneur from Houston with an engineering degree and business background He was a co-founder of a Houston based manufacturers' representative firm almost 30 years ago.Current member of (REBAC) real estate buyers agent counsel and (NABEA) national association of buyers exclusive agent He is the owner broker of Puerto Vallarta Real Estate Buyers Agents.For more information (512)-879-6546 www.TOPmexicorealestate.com

“Where 12 TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

Find out how to protect your good faith deposit and Mexico Earnest Money.

Your ready to buy your piece of paradise, but handing money over to someone you don t know in a foreign country is a scary proposition. So how do you protect yourself from a fraudulent situation

Purchasing property in the Cancun real estate market and even in all regions of the Mexico real estate market is a quite different process than in many other countries. And when it comes to handing over deposit money, many buyers make the mistake of leaving their good judgment at home; thinking this is Mexico and this is how business is done here.

Most of those trustworthy buyers have purchased without problem, but there is always a risk. It is not necessary to have a Mexico Real Estate license to sell propeties So it is important to know who you are dealing with and how to protect your interests.

Mexico Escrow Services

Although not widely used in Mexico, escrow services are available through well know US companies and should be your first choice. There is a fee, but the protection it offers is well worth the extra expense.

Escrow is mostly used for re-sales but the property owner must be in agreement This can sometimes be an obstacle as some Mexican owners do not understand the concept of escrow. In most cases the listing broker can convince the owner if it is properly presented.

Mexico Broker

This would be the next option only if the property owner will not accept escrow deposit. Either the listing broker or the buyer s broker holds the deposit. This is more of a risk, so ask for references and DO CHECK THEM.

Mexico Developer

Most developers will not accept escrow deposits as they use incoming funds for construction. Deposits may be refundable or non-refundable (before the contract is signed) so do ask. It is important to work with a broker that you trust to present you with projects by developers with a proven track record.

The Mexico Property owner

It is customary for the initial deposit to go directly to the owner in the case of a re-sale. This is very risky and I do not recommend this situation. If unavoidable, do so in conjunction with your OWN Mexico real estate lawyer, following his advice so he can make sure you are legally protected.

Merida for us is always a fun city to visitSo when I found out I had to make a 4 hour long trip from Playa del Carmen over to the neighboring state of Yucatan, I was rather looking forward to the escape I had to make the drive in order to deliver more documents in the process of getting my Mexico real estate license.This gave us an excuse to see what is new in the Yucatan real estate market and also gave us the opportunity to visit a golf course that is being built by the same developers constructing the new Tulum Aldea Zama community and their planned golf course Below you can see some pictures of the colonial city of Merida and the Yucatan Country Club golf course community that will have you asking “Is that really Mexico”

Last summer, I started the process to obtain a professional Mexico real estate license A new professional license, a new career that will be offered in the universities here in the country of Mexico.It is an extensive and thorough process which includes various phases and requirements designed by several federal and national institutions The Mexico real estate association calledAMPI and the national organization called Ceneval were two of these key players First extensive documentation was required in order to take a written exam of five hours If passing the test, the candidates were then required within 45 days to put together a portfolio of documents assuring various years of experience and volume of on-hand administration of actual real estate transactions amongst other documentation When I received news that I had received approval of this phase of the process, I thought it was the final and defining test see Mexico real estate License Nope, still more documentation including a process to assure that you participate and volunteer with an approved non-profit organization that helps the community All of these documents were needed to be delivered to the Mexican federal offices of SEP Secretaria de Educacion Publica as seen in the picture above I have to say…. hats off to the thorough process and requirements that is demanded by this new professional career here in Mexico If it were not designed to be detailed and thorough, it would lose all credibility and assurances to the market Well lets see if I make it past this round, I will keep us posted

Merida has been the main regional capital city for all of the Yucatan peninsula for many years It is a colonial city and has many old buildings, theatres, and parks throughout its municipality As you drive through the center, you will find narrow one way streets that criss cross through the center from church to church, from park to park, leading you to the main cathedral and Zocalo The city has been growing tremendously over the past ten years receiving new residents from Mexico City, Monterrey, and regional cities such as Campeche, Villahermosa and Cancun But there is also a growing quantity of Mexican foreigners who find the Yucatan Living style very appealing and welcoming With the growing population, there was growing a demand for a closed gate golf community which we had a high interest to visit.I have been following closely the real estate market in Tulum and know that Aldea Zama developers are also the developers of this new golf course closed gate community in Merida called the Yucatan Golf Club

I thought it would be a good idea to get an idea on the style and the results of a previous golf course community constructed by these developers I have to say I was impressed On the future plans of a golf course in Tulum it shows how the course will be developed and blended into the natural settings of the jungle and cenote systems.Quite similar as the design of the Mayakoba golf course canals and water systems As they explained to me in Merida, the Yucatan peninsula is abundant wih under ground water systems There exist many sink holes, and where these open up to the surface, cenotes are created with water appearing and filling up the hole or cave This Jack Nicklaus designed golf course took advantage of its natural surroundings and created an amazing course both appealing to the eye, and challenging to the golfer

Well once again the trip to Merida was a memorable event as well as productive After dropping off my documents with the SEP for my real estate license, we had time to visit the downtown and time to see how the golf course development might look like in the future back in Tulum Great trip.

Thomas Lloyd graduated from Purdue University Krannert School of Management witha degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. With a Mexican Real Estate Certifications and various diplomas he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the companys' web site www.TOPmexicorealestate.com

“Where 9 TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

Mexico can be an exciting place to live for those who are retiring to Mexico, for those who are working from home on a computer link with their company, for those who are looking for a vacation home or an outstanding investment… above all, for those who dream of a better quality of life! Home…the word represents security and comfort for the majority All too often the word, when used in conjunction with a purchase of property in Mexico creates stress, worry and, at times has been associated with financial loss This needn't be the case Procedures in searching titles and transferring property are similar to those of the United States and Canada The buyer of a house, condominium or lot in Mexico must ask the same questions, and should receive answers similar to those received when buying a property elsewhere

Rule Number One: SelectA Mexico Real Estate Agent

In considering the purchase of something so important as a home it is necessary to have the right people representing the buyer and his interests This can be accomplished by first selecting the general area where you think you'd like to live Through NAFTA agreements, the Association of Mexican Real Estate Professionals (AMPI), is now affiliated with the U.S. National Association of Realtors (NAR), the Canadian Real Estate Association (CREA), and the International Real Estate Association (FIABCI) These important national real estate organizations are working to achieve standardization of real estate practices and procedures throughout the world The company you select to represent you in your Mexico property purchase procedure should be a member of AMPI Not only is the AMPI member company required to operate under a higher standard of care, and to adhere to a code of ethics, but also it may have access to an increasing number of the properties available for sale through computerized data bases Once the area is selected and a list of the AMPI companies operating there have been obtained – interview the owners and operators of the companies Ask for references, ask for a professional resume Interview carefully the persons that most impress you the person you select should be familiar with the area, with basic real estate principles…and should impress you with his or her honesty and drive to find what YOU are looking for Once you have found the person you feel comfortable with, stick with him or her and let him do his job The sales person who knows you aren't shopping around will generally work harder to find exactly what you are looking for Remember, it is your money and your commitement Do not be pressured by someone who is charming but who does not listen carefully enough to undertand YOUR special needs

Rule Number Two: Examine the Mexico Neighborhood

Once you have selected the right Mexico community, an agent with who you feel comfortable, AND a possible property, check out the neighborhood Is it new Is it old What will it look like in ten years Are highways or other development projects planned for the future Where are the schools, churches, shopping facilities Are there homeowner fees for maintenance of common areas If so, how much are they and when are they paid Are all the utilities in and paid for What does the developer have left to do What building restrictions are there Are there covenants and conditions registered for the usage of the land In many parts of Mexico there is no enforcement of a master plan or building codes This can affect the changing face of the neighborhood you have selected

Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546 www.TOPmexicorealestate.com

“Where TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

A few days ago I was called up for an interview with Brian Requarth from the VIVA Real Network see the full interviewweb page.Brian and I conversed on several topics such as How is The Mexico Real Estate Market reacting to the US slowdown What are the majority of the non-Mexican buyers searching in regards to Mexico PropertiesWhat advise can you give to a new buyer in this country and what should they expect in regards to the Mexico real estate investment environment and several other questions and topics Click on the button below to listen in on this interview.

Thanks Brian, nice speaking with you and look forward in future conversations.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. With Certifications and various diplomas he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company`s web site www.TOPmexicorealestate.com

“Where TOP real estate experts from ALL regions of Mexico come together to share their Tips & Knowledge to help you buy safely !”

The Mexico Real Estate market is going through an exciting transition to improve the processes of buying properties here in this country The national realtor association called AMPI, sister association with the NAR association of the United States, has been working for various years on a project to regulate or to license the people practicing in the industry of Mexico Real Estate.

Fernando Gonzaez Salazar and Laura Flores Araiza of the national offices of AMPI have been coordinating these activities in conjunction with the federal educational organization called CENEVAL (Centro Nacional de Evaluacion Para la Educacion Superior = National Center for the Evaluation of Superior Education) This organization is authorized and recognized by the FEDERL EDUCATION SECRETARY and Academic Schools and Institutions of the Mexico country for their evaluations and exams.

MEXICO REAL ESTATE PROFESSIONAL LICENSE

With the federal regulation 286 (Acuerdo 286) and published in the (Mexican Diaro Oficial) equivalent to the United States Federal Register , this official document outlines and regulates the process for individuals to obtain a new federally issued license and degree for the profession in the Mexico Real Estate industry

There are two methods available to obtain this degree: the traditional method which is going to an Academic Institution public or private There are now several universities throughout the country of Mexico offering this college degree The second method of obtaining the official license and degree is through the process regulated and outlined according to REGULATION 286 mentioned above This includes applying and taking a nationally applied exam and then if passing exam, presenting a portfolio of documentation demonstrating years of experience and knowledge in the industry.

MEXICO REAL ESTATE LICENSE BACKGROUND

AMPI was first introduced to the Mexico Real Estate industry in 1956 The organization is a national association of real estate professionals who have been gathering under laws and a code of ethics to establish a reliable and trustworthy environment within this industry Today, AMPI is made up of more than 4,000 afiliates and associates, and over 25 separate and autonomous sections Each section has their own board of directors who decide for their areas, and is governed by the national board of directors who elects a national president for two year terms.The state of Sonora was the first state government to introduce a process of regulating and licensing the real estate industry in Mexico in 2004 Although no exams were applied, the Sonora state sponsored an extensive 110 hour course of in depth real estate studies The themes covered in the licensing process included taxation issues, city development, bank trusts, appraisals, marketing & sales, and issues regarding ethics pertaining to the real estate industry The course and licensing process has been applied during the past several years with close observation and analyzation by the AMPI organization, state and federal government officials, and the federal educational boards in order to expand and introduce a similar process on a nationwide level In September of 2008, the first national exam was applied in Mexico

MEXICO REALTOR LICENSE FIRST EXAM

In September of 2008, the first national exam regulated and outlined by the ACUERDO 286 was applied The exam was applied in several cities throughout the country under close scrutiny of the CENEVAL officials The exam was applied nationwide precisely at 8:00 am on the 28th of September in all the participating institutions The exam was a historical event as this was the first exam for licensing in the Mexico Real Estate industryAspiring Mexican realtors prepared many months and years in order to partake in the strenuous 5 hour long test The Mexico Realtor exam was only the first step and process required by the CENEVAL organization Those who passed the first process were then required to deliver extensive files,and documentations to deomonstrate education, experience, knowledge amongst other requirements in the real estate industry.

One important note to make, it is NOT a requirement by any regulation to have a Mexican real estate degree in order to practice in the Mexico real estate industry The ultimate goal and the steps that AMPI is embracing and promoting is to have a guideline, such as the regulations in the United States and Canada requiring realtors to be licensed and brokers to have licenses in order to practice such professions, but today the license is a voluntary procedure and documentationThe licensing and obtaining a degree as a Mexico Realtor is being introduced and educated to the industry with the succesful efforts of people such as Fernando Gonzaez and Laura Flores and their departments at the Mexico national AMPI offices

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. With Mexican Real Estate Certificatons and various diplomas he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company`s web site www.TOPmexicorealestate.com