Disclose or Don't Disclose . . . that is the question.

[Ross E. Buck]

This is a topic that has gathered a lot of momentum in Baja Norte over the past few years. One of my many goals is to help Mexico to have a transparent Real Estate Industry. To me that means that foreigners that purchase property here would have as similar of experience as they would have in buying property where they come from. That being said, I'm curious what your thoughts are on the topic and what has already been done in your area to help Buyers be "Educated Buyers" that are able to make their own informed decisions regarding their purchases in Mexico.

We are working toward full disclosure in Baja Norte for members of our Association but I know that it is a bit of an up hill battle. We want to create an industry where the consumer has the information about the subject property prior to moving forward with a purchase. I believe that it is the agents responsibily (Both buying and selling) as the "local professionals" to do their job and disclose any items that could affect the property. That could include items such as cracked slabs, crime, HOA meeting minutes and finances, sewage problems, title issues, etc.

Thanks and I'd love to know what you are thinking . . .

[Pam Brame]

Transparency is the key, educating your clients of all aspects of buying and selling in Mexico. Here is San Carlos Sonora Mexico, we now have a Home Inspection Company who does home inspections for the buyers or sellers. They give a great printed presentation folder and CD or email the inspection to the client. We have not gotten as far as having a SRPD yet but I suspect it will be coming in the next few years. Change takes time but I feel Mexico in General is moving in the right direction. Viva la Mexico!

[Carol Billups]

Transparency is what most of us are working towards, but unfortunately there are those who will say or do anything to make a deal. That makes it difficult to say the least when you're representing the buyer. You'd like to think these folks are shady types doing business from a bar stool... but unfortunately they sometimes work for big name franchises (not this one!). And for the life of me I can't understand how they're still in business, but they are and quite successful. And don't get me started on why our professional associations are ineffective in enforcing proper behavior!

Ultimately I believe it will be people like us on sites like this that make the difference. Can you imagine a day in the not so distant future when a buyer types "Real Estate in Mexico" into their browser and is directed here or somewhere like it? And can get neutral advice instead of being routed to a company website that is designed to reel them in like a tuna? Once we have informed buyers the rest, I believe, will follow. Oh sure, we'll always have a few who just beg to be ripped off but they are the exception and not the rule. And perhaps those who have been promised what they're not going to get, etc, will find a voice to speak out against unethical practices. Sure, there's always going to be the sewer that backs up the day after closing or the refrigerator that gives up the ghost before the ink is dry on the contract, but those are accidents and not known but concealed defects.

Just my humble opinion...

[Mercy Stirling de Duenas]

I think it is an ETHICAL issue - and as members of AMPI we need to be the example! Anything that you know FIRST HAND about a property - or there is even a QUESTION about it - you have the duty as the agent to INVESTIGATE and inform your client. And many times - you might even lose a sale because of it - but it is only FAIR...I say - put yourself in their place and how you would like to find out after the sale that a big old OVERPASS is going next to your house.

Now is it EASY to know everything about a property?? Do sellers tell the truth to the listing agent - NO - . It is not like the information is flowing all about us here in Mexico!! We have to ask around.

There is a section here in Gdl. called Royal Country - people are selling their properties because the city is going to put in a big access to the Periferico (Loop) through their neighborhood. I know that because I read the paper. I doubt very much if a seller contacted us they would share that..If we are professionals we should be in touch with what is going on in the city - or at least have a way to investigate if we don't.

I had the experience that when you have untrained unprofessionals selling property - they are in it for the $$$ and just want to get in and out ...and don't care down the road about reputation or referrals. So I would always work with an AMPI member - because at least - in the worst case scenario - if you brought a property and had any complaint you have recourse through the Honor and Justice committee all the way up to AMPI Nacional. At least it is SOMETHING! If you go through others - you have no recourse except to sue them probably locally.. It also fall back on the buyer - CHECK, double check, ask around , if you have a doubt - don't buy!! If there is a development - be sure that you get a buyer's representative to represent you instead of going directly to the development. You can get a local agent ( IF YOU GET THEM FIRST and then go to the development - not after the fact! Or they get no commission!) but at least you have someone that will be looking out for you - and your interests.

Our towns that we sell in are very small and word gets around FAST as to those that are ethical and service oriented as to those who will screw you for a commission.

[Karen Stewart]

I totally agree with you. It is exciting to see how things are changing in Mexico for the better for we AMPI members. There is so much more accurate information out there telling our clients about the positive realities of buying property in Mexico. We are in a very small town of about 8000 people and believe me, everyone knows what is going on here so we want to make sure that we disclose everything that we know about properties that we are involved in. Good service is the key to any successful business and that includes giving all the true facts about our industry and the properties that we are buying and selling for clients. Our Home Inspection Company here in San Carlos will really help our business. We have seen some good traffic here in the last month and hear people say they are ready for a big change in their lives, like moving to Mexico. Love to hear that...

[Carol Billups]

Of course it's a matter of ethics, but unfortunately not everyone sees 'ethics' in the same way. And AMPI, although a help, is not 100% effective. Politics and influence, you know. Maybe the wrong thing to say on the web, but they do exist and influence what is said and done. At least here.

Karen is right about small towns, I'm just amazed the same agents pass out incorrect information, and live to tell about it. Over and over and over again.

All I can figure out to do is work very hard to know what I'm representing as a listing agent and make sure all the 'warts' are disclosed. When I've got the buyers and someone else has the seller is more problematic. Yes, I try to keep up on what's going on in town but when you show a house on the MLS and the listing agent doesn't disclose a little something like the title is in an off-shore corp....

[John K. Glaab, CIPS]

Since 1991, The Settlement Company has been delivering courses to investors and the real estate industry in B.C.S. One of the themes has been "Full Disclosure." Members of AMPI nationwide swear to uphold a code of ethics patterned after the National Assocation of Realtors Code..
On the National and International level, Linda Neil Founder of The Settlement Company is co-author of an NAR course,"Doing Business in Mexico." This course has been delivered in various parts of Mexico and the U.S.A.It too teaches full dislosure and ethical behaviour.
On the local level, MLS Los Cabos has become more aggressive in enfocing its code of ethics (the group has adopted the AMPI Code.).
Having said all of this there remains a major need for more education and a higher level of ethics in the real estate industry. Finally, the word Realtor is an internionally protected copyright. As a result of a joint venture signed by AMPI and NAR in 2006, members of AMPI are members of NAR. This means they can legally use the word Realtor. and the NAR logo.
Let us continue to raise the bar for ethics and professionalism in Mexico.

[Ross E. Buck]

It's great to see others out there working hard to improve the overall Real Estate Industry of Mexico. I brought up the idea to our association that we should create a reference guide for members that discusses all of the "known issues" in each neighborhood that is in our selling area. It seems that everyone was in agreement, so we will work on using this information as our first step in doing actual disclosure documents to the parties of the transaction. Is anyone else already using formal disclosure documents?