You have made an offer for a property through your agent. You have put a deadline on how long it is valid. You are waiting on a response. Everything at this point is out of your hands. You are relying on your agent, and the agent of the seller. If you are making an offer with the listing agent as the buyer agent also, you are going to have to rely on this agent to handle both sides.
What should happen during this period of waiting? What happens to your offer if you are told others are coming in, as well? How does this all work in Mexico?
Buying and selling real estate in Mexico is complicated and very different from the U.S. and Canada. That’s why you should put your trust in an AMPI agent.
Founded in 1956, the National Association of Real Estate Professionals (AMPI) in Mexico has established a reliable, trustworthy and efficient real estate environment through its laws and codes of ethics.
AMPI consists of separate autonomous chapters throughout Mexico, as well as more than 4,000 associates and affiliates. Each chapter is independent and has its own board of directors. There also is a national board of directors comprised of twenty associates from all over the country.
The three local chapters of AMPI – Vallarta, Nayarit and Compostela – follow a set of ethics and policies set by the national AMPI organization. AMPI members have a fiduciary responsibility to fairly and honestly represent our buyers or sellers.
Agents who belong to AMPI follow the AMPI ethics code and strict policies for transparency to avoid acting in a self-interested manner. AMPI agents carefully avoid getting into the middle of any transaction in a negative way to give preferential treatment to one party at the expense of the other.
Here are a few practices AMPI agents adhere to:
- An offer should be in writing from the buyer.
- Counter offers should be in writing from the party making the counter offer.
- Rejections of offers should be in writing from the party rejecting the offer.
- As AMPI agents, we cannot be ignorant or casual about the importance of transparency.
- As a principal in a real estate transaction, an AMPI agent client should insist on transparency and ethics with us.
- The buyer or seller should also be ethical and transparent. This is still possible even in negotiations for buyer and seller to get the best deals possible.
This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller of Mexican real estate conduct his/her own due diligence and review.