Real estate professionals serve as intermediaries in property transactions, representing buyers, sellers, and developers. However, significant differences exist between the regulation and function of these professionals in the United States and Mexico.
WPBC and AMPI Cooperation
The World Property Business Club (WPBC) has a cooperation agreement with the Mexican Association of Real Estate Professionals (AMPI), fostering collaboration between real estate professionals in both countries. WPBC has numerous members in both the United States and Mexico, strengthening cross-border real estate opportunities. For more information, visit WPBC Website and AMPI Website.
Regulation and Licensing
In Mexico, there is no national regulation for real estate professionals, though 19 states impose some level of regulation. There is no nationwide certification or licensing requirement. In contrast, the United States has stringent regulations distinguishing real estate brokers from agents. Brokers have more training, licensing requirements, and earning potential, while agents must usually work under a broker. Licensing bodies, such as the Texas Real Estate Commission (TREC), enforce strict requirements, including examinations, education hours, and professional standards.
Ethics Standards and Conflicts of Interest
U.S. brokers and agents must follow strict ethical codes, including conflict-of-interest regulations, ensuring proper client representation. In Mexico, there are no legal requirements for ethics compliance, but some brokers voluntarily adhere to the Mexican Association of Real Estate Professionals (AMPI) code of ethics.
Liability and Closing
A key difference is the entity responsible for verifying real estate transactions. In Mexico, Notaries Public, who are legally trained professionals, oversee and formalize transactions, ensuring their legality. Mexican real estate brokers have limited liability concerning the legal status of properties.
In the U.S., brokers and agents prepare transaction documents and must comply with local, state, and federal laws. They owe fiduciary duties to their clients, and failure to meet these obligations can result in legal liability. Private title companies, rather than Notaries Public, handle legal verification, acting as intermediaries and escrow agents. They perform title searches, issue title insurance, record deeds, and manage financial transactions. While not legally required, title companies are commonly used and mandatory when third-party financing is involved.
in conclusion, significant differences in regulation exist between real estate professionals in Mexico and the U.S. Those interested in acquiring, selling, or investing in either country should understand these distinctions and seek competent members of AMPI or specialised real estate agents in the USA to navigate transactions effectively.
Source: CCN Law, San Antonio, USA