Mexican Real Estate: De-mystified
I’ve lived in Mexico since September 2009, (active in real estate since 2013) and I keep thinking about Steve Martin’s quip about a trip to Paris. With feigned indigence, he complains: “ It’s….it’s like THOSE FRENCH have a DIFFERENT word for EVERYTHING! For a chuckle, watch it here.
The Mexicans also seem to have a different word for everything. What I have found, however, is that aside from their strange way of saying things, (beer is Cerveza), we have much in common.
As a realtor here in Vallarta-Nayarit, I have bought and/or sold numerous homes involving multiple-nationalities: Mexicans and Canadians, Canadians and Americans, Americans and Mexicans, Spaniards, and Mexicans… you get the idea. While the buyers and sellers are very often from different nations, what all these transactions have in common is that the properties are all located and deeded here in Mexico.
So it is (or it should be) rather obvious that transactions are conducted in the official language, and according to the laws of Mexico.
This is where it gets a little daunting for foreigners purchasing Mexican real estate. People can feel uncomfortable about the process, and it’s our job as REAL REALTORS (more on this later) to guide our clients through the process. Millions of foreigners have purchased property in Mexico over the years. These transactions, when conducted properly, (as they generally are), result in the orderly transfer of a property from seller to buyer. Spoiler alert: your correspondent is now about to launch into a tirade about the (seemingly obvious) reason to deal with a professional Realtor versus every other option.
Here are a few phrases to help you when you are in Mexico
- Donde es el baño? (where is the bathroom?)
- Una mas Cerveza, por favor (another beer, please)
- Eres afiliado con AMPI? (Are you affiliated with AMPI ?)
The first two phrases will help you avoid embarrassment and dehydration. The last phrase will help you avoid the thankfully uncommon, but unfortunately highly-publicized peril of an unpleasant real estate experience here in Mexico.
So what is AMPI?
AMPI is the most highly regarded association of realtors here in Mexico. REAL real estate agents, serving their clients in the acquisition or sale of REAL real estate. AMPI is the largest real estate association in Mexico, founded in 1956 in Mexico City, with 60 regional boards throughout the country. Today AMPI has more than 1,500 broker-members who in turn represent about 10,000 practitioners throughout the country. AMPI members include: Appraisers, Developers, Counselors, and Brokers, all of whom subscribe to the AMPI bylaws Code of Ethics.
So why do we hear about the occasional rotten deal in Mexican real estate? (I personally know a poor guy who kissed away $250K by dealing with a… let’s say… a guy with no applicable skills or certification, doing business they had no business doing.) Here’s the top reason:
Unlike Canada and the USA, Mexico has not yet made it mandatory that real estate agents be certified by, and affiliated with a professional organization like AMPI. So anyone with a cell phone and a business card can “sell” to you supposedly “real” real estate, (when they’re not doing their day-job as tour-boat operator, bartender, lounge-singer, taxi driver, etc). This is not to say you will get “taken”, it just means it’s far more likely.
Why? Because in Mexico, only AMPI members are certified to have taken the required training, meet the continuing education requirements, stay informed of ongoing regulatory changes, subscribe to a code of ethics, and best of all, they are in turn affiliated with the internationally recognized and respected National Association of Realtors, (NAR) based in the USA, CREA in Canada, and many other internationally recognized professional real estate organizations.
It’s believed that in Mexico it won’t be too many years before realtors, by law, are required to be certified. AMPI is very active, working with legislators and respected international organizations to ensure that consumers, national and international alike, are treated fairly and professionally.
There’s very good news on that last point.
At a recent AMPI conference here in Puerto Vallarta, I spoke with Michael Ford, the Vice President of the National Association of Realtors. Mike was in town to speak about the exciting and now formal relationship that AMPI has with NAR. He spoke about the NAR/AMPI joint venture, and how it brings realtor professionals together in a joint cause. He recognized that the real estate market is more and more an international market. It is truly a global marketplace and the more uniformity and consistent standards we can have the better consumers will be served.
So AMPI is affiliated with NAR (National Association of Realtors) in the USA, and CREA, the Canadian Realtors Association among others. For professionalism in Mexican real estate, you just can’t beat AMPI.
AMPI; Insist on it. You’ll be professionally served, and you could save yourself a world of hurt.
Chris Bouchard. AMPI, PMP.
“Like many visitors to Mexico, Derry and I fell in love with the people and the village of La Cruz. We began a fantasy of “maybe we could move here!” Chris Bouchard offered to show us around a few different options, both to educate us about living in Mexico and to give him a good feel for what we really were looking for. Chris had an in depth knowledge of the area, the personalities of various neighbourhoods, and what properties were available. While technical knowledge and experience is fundamental for any good agent (and Chris is good!), the success of our relationship and eventual home purchase was Chris’ patience and sense of humour. Buying a home in a foreign country can be overwhelming, but Chris made sure we never lost our direction. We found the perfect house, at the perfect price. The closing process was smooth, and we were always confident that we were in good hands. Along the way, we had a multitude of questions, and the normal “middle of the night” anxieties. This was compounded by cultural differences and thousands of miles of distance. Chris was right there beside us, every step of the way. ¡Gracias, amigo!” Shari and Derry from Brandon, Manitoba
Contact Chris to invest in paradise. chris@remaxplayalacruz.com
