Is Your Mexican Real Estate Agent Licensed to Sell Property?
If you are investing in property anywhere in the world, it is important to hire professionals to assist you with your purchase and ensure your investment is protected. In the past, anyone in Mexico could claim to be a real estate agent or rental agent, there were no licenses or regulations in place.
In the state of Quintana Roo, one of the fastest growing real estate markets in Mexico, new real estate regulations have been imposed. The new license requirements were published on July 6, 2014. Although the law has been in effect for a few years now, it has not been enforced, but as of February 2018 anyone found working in the real estate field without the proper accreditation will be penalized. This date has been agreed on by The Mexican Association of Real Estate Professionals, the National Chamber of Commerce, Services and Tourism and the Mexican Association of the Real Estate Industry as well as the Secretariat of Sustainable Urban Territorial Development.
The registration and accreditation are granted by SEDETUS Secretaría de Desarrollo Territorial Urbano Sustentable.
The regulation affects anyone working at any level of real estate from sales agents, rental agents, property managers, consultants and condominium administrators. Anyone who profits from real estate services must have a license; this includes Mexican Nationals and foreigners. Foreign nationals must have complied with the requirements of the immigration authorities and prove they have permission to carry out paid activities and also provide proof of legal migration status in the country.
The licensing program will ensure people employed in the real estate field are educated in Mexican laws, liabilities, follow a code of ethics and transparency and do not have a criminal record or history of fraud, something which is standard practice in most countries.
The real estate or rental company, as well as individual agents, must complete the program and hold the license.
Working for an accredited business is not enough, individual agents must be accredited.
Until individuals are accredited, they will be prohibited from providing real estate services and sanctioned if caught doing so. These sanctions will range from a warning, financial penalties of up to a thousand times the minimum wage in the state of Quintana Roo, to being blacklisted from the industry, banned from applying for the accreditation altogether and possible jail time. It is important to understand that since this law is regulated by the state, it falls under criminal law, making it a criminal offense to impersonate a licensed agent.
The Department of Urban Development and Housing of the State of Quintana Roo are the authorities who will impose the sanctions.
Unlicensed agents need to be aware that licensed agents or agencies are required to report potentially unlicensed providers, and in this competitive field, this could be detrimental to you and your business if you do not have the proper accreditation.
It is not difficult for the authorities to locate unlicensed agents through the internet, social media or advertising. Handing out a business card which solicits business in the real estate and rental activities is all the proof necessary to show you are or attempting to earn an income in real estate.
The license is to be renewed each year, and in order to qualify for renewal, agents are required to continue their education in the real estate field by completing a minimum of 30 hours of continuing education on pre-approved topics each year.
Investment in Mexico continues to evolve; with accredited real estate agents and a reputable law firm to close your real estate purchase, you can rest easy your investment is safe and secure.
Click the link and click on the boxes at the bottom of the page for more information and a running list of accredited agents in Quintana Roo.