Puerto Vallarta Real Estate: Ethics

Puerto Vallarta Real Estate: Ethics

Puerto Vallarta Real Estate: Ethics. This article is about Puerto Vallarta real estate ethics in pre-construction, new developments, as well as resales. There is a particular ethical and moral way in which buyers and sellers should deal with each other, and most of the time, the person who has to keep the negotiation on this level is the agent (agents) involved.

This is our responsibility to recognize and require that everyone involved work on the highest level of reason and fairness. This subject has nothing to do with negating capitalism or denying a buyer or a seller a good deal. Where did we get the naïve and immature idea that one party has to be harmed or beaten down and the other is to win at all costs?

What Rights and Representation Do Buyers and Sellers Deserve?

Basic Rules & Regs for Real Estate Agents:

AMPI agents have rules and regs they agree to follow to become and remain members.  Here are some of these rules we must understand and follow without exception:

  1. The agent must understand that all circumstances involved in a transaction are entrusted to him
  2. An AMPI professional must disclose the qualities and defects of the property under consideration.
  3. He should understand and tell his client the feasibility or complexity required for a completed transaction.
  4. He must disclose all relevant info which could impact a sale.
  5. He must disclose to a buyer how title is taken.
  6. Require a review the condominium regime and current rules and regulations of the HOA.
  7. He must never oppose the wishes of his client to consult an attorney, notary or other professional on the disclosure of:
    1. Restrictions or limits which could affect the property.
    2. Problems affecting the property.
    3. Structural soundness.
    4. Quality of materials.

Additionally, he must cooperate with all consultants’ his client may want to use to investigate the property and conditions of closing a transaction.

When an entity or new development has its own forms, and contracts, he must still find and disclose the same details and risks as in an AMPI approved contract of sale.

AMPI National Ethics

All of this information is in the AMPI National Ethics which apply to every chapter in Mexico. There are many websites with these rules and regs in English and Spanish for buyers and sellers to read. Easy to google……

Jalisco Civil Code and Unethical Agents

If a real estate agent or an attorney is unethical, negligent, or incompetent, he can come under Article 2261 of the Jalisco Civil Code which establishes that the service provider is liable, and the injured party can file a civil action lawsuit.

The client does not need to prove a written contract for services to take this action or worry that a third party would be paying for the agent’s compensation. The client as an injured party does not have to directly pay the bad service provider to prove harm.

 

Harriet Murray

Author and article courtesy of Harriet Murray, Founder of Cochran Real Estate in 1997. Born in Louisiana, Harriet Murray had an early love of art and studied art education in college. Upon graduation, she went on to become an art teacher in New Orleans public schools. She later moved to TX and taught art there; as well as science, speech arts, and other subjects like most young teachers do. She is the current President of the Puerto Vallarta chapter of AMPI (after serving as Vice President under different Presidents for 15 years); and is AMPI certified in both the US and Canada, as well as a member of the NAR.  She is a proud Certified International Property (CIP) specialist – an achievement only attainable after intense training in real estate in markets all over the world. This article is based upon legal opinions, current practices, reporting from FBS MLS of AMPI members, and personal real estate experience in Puerto Vallarta since 1997. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review. Contact Harriet at email: [email protected]

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