This August, Mexico Real Estate reached a historic milestone when the first professionals in this field received the new degree in Mexico Real Estate and the accompanying "cedula profesional" – professional identification number. The milestone was a result of the efforts of the Mexican Association of Real Estate Professionals (AMPI) to implement this new prestigious qualification. The new degree is being offered as an option in response to AMPI's concerns that improved standards and better training should be required for real estate consultants and professionals in Mexico. While the new degree is not a requirement, it comes in response to demand from the consumer market, which will now benefit from the new benchmark in professionalism.
“The market and clients demand true professionals," pointed out Fernando González Salazar, Director of the Professional License Department of AMPI, "specialists in real estate with recognized studies and a professional identification authorized by a federal government body.”
The university degree is officially authorized and administered jointly by the Ministry of Public Education (SEP) and the National Center for Evaluation of Higher Education (CENEVAL). The degree is offered through two distinct processes. One is through a combination of a professional exam applied with strict security measures and a portfolio of documentation demonstrating ample experience in the industry. The degree can also be obtained through a 4 year course of studies at several select universities throughout Mexico.
Background
Before the recent implementation of the new degree and professional identification number, there was little organization of requirements or professional qualifications to work in the real estate industry in Mexico. Currently, real estate licenses are not required in most areas, and are often not available. Certifications exist, such as those offered by CONOCER (a government organization responsible for education procedures) and by AMPI chapters. Also, in the state of Sonora and Nayarit a license to work in the industry is both available and required, and is obtained through a single test. However, the majority of the agents and brokers who practice this profession in Mexico have yet to begin the process of obtaining these professional qualifications and have not joined professional organizations such as AMPI.
"We have estimated that there are nearly 19,000 people practicing within the Mexico real estate industry,” mentioned Laura Flores, coordinator of the degree test within AMPI. “Of these only approximately 2,300 are associates of the AMPI organization."
A group of associates in the national office of AMPI have been working with great dedication for the past several years to create the real estate degree and implement the professional identification number, with the purpose of increasing the level of service standards in the industry. AMPI has contributed many hours, and a great deal of knowledge and dedication from key members of their organization to ensure this milestone achievement was accomplished.
Obtaining the degree by means of the exam
As mentioned above, experienced real estate professionals can obtain the new degree by completing an exam, called the "General Exit Exam for the Professional University Degree in Real Estate Business" (EGETSU-CI is its Spanish acronym), and providing thorough evidence of their experience in the field.
This manner of obtaining the degree is designed for realtors with ample experience and is certainly no "short cut," as the following steps of the carefully designed procedure demonstrate.
The first step which real estate professionals can choose to follow is a preparation course to review and consolidate knowledge which they already have acquired from years of working in the industry. La Salle University, for example, offers an 80 hour course, with a diploma. The themes covered in the class cover a variety of areas such as;
• The supply and demand factors for real estate products and services.
• The classifications of property use (in addition to the regulation of land use)
• The functions of the sales process.
• The methods to acquire the rights of a property
• The stages of testamentary and non-testamentary succession
• The classification of contracts for various real estate transactions
• The concepts of Internal Rate of Return, present value and future value.
To enter the preparation course at La Salle there is a minimum requirement of 3 years of experience.
The application of the exam
In addition the the items listed above, the exam also includes administration, economy, and finances, among other aspects of Mexico real estate. The exam lasts for five hours, and consists of 177 multiple choice questions divided into 8 sections. It is administered in strict accordance with guidelines in order to ensure that the questions are not revealed prior to the exam date to ensure formality and professionalism.
Earlier this year, the exam was applied for the first time in 16 cities throughout Mexico; Morelia, Cancun, Mazatlan, Zacatecas, Puebla, Cuernavaca, Veracruz, Cd. Juarez, Tijuana, Toluca, Guadalajara, Mexico City and its metropolitan area, Queretero, Puerto Vallarta, Monterrey. The exam was applied in every city simultaneously, coordinated to have the exams distributed on the same schedule, again for the sake of a high level of formality and professionalism.
The process of documentation
Real estate professionals who pass the exam move on to the process of delivering the supporting documentation, called a “portfolio de evidencias.” In order to receive the degree by means of the exam, realtors must demonstrate years of direct experience and knowledge in the field. The purpose of this portfolio is to demonstrate this experience, and must evidence progress and accomplishments relevant to qualifying the candidate to hold a university degree in Mexico real estate.
The portfolio may include certificates from PIC or CONOCER, diplomas from various authorized universities (for example, Anáhuac, Tech de Monterrey, La Salle, Ibero), courses, professional development projects, and evidence of practical experience, such as documents from a notary public, etc. The specifications for the documentation were carefully elaborated, with the consultation of a group of national real estate specialists.
The documentation revision by SEP is a thorough process; for the first round of candidates the process lasted for almost 6 months. After the revision of documentation, candidates who both passed the exam and whose documentation met the requirements are notified that they qualify for the degree. The degree documents and professional identification certificates are prepared by SEP and delivered by AMPI.
In the first generation of exam candidates, 44 successfully passed the exam and demonstrated their experience to receive the new degree. These professionals are, along with AMPI, leading Mexico's real estate industry in a new direction to a higher level of professionalism.
University course of study
The second manner of obtaining the degree is the more conventional method of obtaining a degree in a university; university students, who are entering from high school may study to obtain the degree in real estate in a regular 4 year course of undergraduate studies. The plan is to offer the degree in selected prestigious universities, public and private, recognized and authorized by SEP, with the purpose of creating a first generation of young real estate professionals, trained in theoretical knowledge with a degree and professional license before entering the practical world of real estate sales. Although they will not have the in depth sensitivity for the field which only experience can bring, the studies will give them a base of knowledge and professionalism to begin gaining experience. The degree is intended to be rigorous, in-depth and serious.
"Cedula Profesional"
As already mentioned, this program will not only offer a degree, but also a professional identification number and certificate (cedula profesional). These are not issued in the same process as the real estate licenses in the United States; they are issued at a national rather than a state level, and are only granted to university degree holders. The "cedula profesional" is also issued to other highly trained professionals, such as those in the medical or legal field, a fact which reflects the level of professionalism the "cedula profesional" implies. The process of receiving the new degree and professional identification number in Mexico is, in fact, more involved than obtaining a real estate license in the U.S. or Canada. There are stricter requirements, and the test is applied in a more secure, professional setting. For clients, the presence of the professional identification certificate will serve as a very trusted indicator of professionalism and knowledge.
Implications in the Future of Mexico real estate
The short term goal of the project is to continue promoting the exam and the degree. According to Laura Flores, in the long term it is hoped that all those dedicated to the Mexico real estate industry will hold the degree and "cedula profesional" - a situation similar as that for doctors, lawyers, etc. For the moment this will be a question of the laws in each region or state.
While these kinds of requirements will be worked out regionally, and perhaps on a national level in the future, the existence of this degree represents a significant step forward in Mexico's real estate industry. This level of professionalism and standards indicates a promising future in terms of professionalism and client confidence.
