Buying Real Estate in Baja - Being an Educated Buyer

Let the Buyer Beware!
One More Time. An Update!

By Jay West, CIPS, TRC

AMPI Regional Coordinator for Baja
California Sur & Sonora Coordinator,
International Committee of AMPI Nacional.

It has been said that perception is everything. However, I would like to make a case for substance.

In the past, foreigners purchasing Mexican real estate have not been critical enough in many very important areas. The perception that the English-speaking Buyer can have confidence in any English-speaking agent has also been common. Sadly, many nave investors have paid an unnecessary price for accepting this trust me sales pitch at face value.  In Los Cabos recent past, even doing business with an established real estate franchise name is no guarantee of safety.

So where do we go from here? How can one of the most attractive resort markets in North America achieve its enormous potential? How are the serious real estate professionals changing the face of Cabo real estate? And, who are they? 

More below...
 

In addition, we offer classes to our local community on such issues as Doing Business South of the Border, the need for third party Escrows, and knowledge about the Fideicomiso and the growing need for Title Insurance. More courses and seminars are planned, and most will be open to the public.

Through local and national Commissions on Honor & Justice, AMPI members are required to abide by the Code and Ethics, or face disciplinary action, including expulsion. The Los Cabos real estate market represented individuals investing more than $300,000,000.00U.S.D. in 2004. The future should provide even greater opportunities, and we must create a professional real estate environment committed to safety and service.If you are a foreign citizen thinking about investing in Los Cabos, insist on doing business with real estate professionals who are members of AMPI. Ask if they are currently certified or are also members of the National Association of Realtors or the Canadian Real Estate Association. Ask for professional identification and professional membership information. If your agent is a foreigner, you may also want to know if they have ever been professionally licensed in your home country.

Throughout the world of real estate, no single organization is more respected or more professional than the 1 million members National Association of Realtors (NAR) in the U.S.A. In fact, it is the largest professional trade association in the world. Similar respect is accorded the Canadian Real Estate Association (CREA) and other international associations. Here in Mexico, the Mexican Association of Real Estate Professionals (AMPI Asociacion Mexicanos Professionales Inmobiliarios, A.C.) is the organization recognized by NAR and its international sister organizations.

AMPI Los Cabos members are committed to raising the current level of safety and professionalism in real estate. Each member of AMPI Los Cabos is required to pass an In depth 140 question examination on the AMPI Code of Ethics, which is based on the tenets of the NAR Code of Ethics. The AMPI Code of Ethics was also adopted in its entirety by the Los Cabos MLS in 2001, but fewer than half of its members are also members of AMPI.

AMPI Los Cabos is also committed to the continuing education of real estate professionals. We encourage our members to become certified in the important professional specialties offered by the National Association of Realtors. These specialties include the CIPS Certification (Certified International Property Specialist requiring more than 50 hours of courses where members are tested on their knowledge), the ABR Certification (Accredited Buyers Representative) and the coveted CCIM designation for Commercial Real Estate. NAR is also offering specialized training in Resort Marketing, and several of our Los Cabos members are working to attain this special credential as a part of their ABR certification.

 Why is this important? Because there are NO real estate licensing laws in Mexico!

It is also very encouraging that the Los Cabos MLS is currently promoting an ambitious education program

for our members. In Mexico, we are currently being encouraged to become educated and certified by National professional certification authorities. This process will take time and there are still a number of individuals working here in Los Cabos are resisting any change which will require additional education or testing requirements for real estate. With the most recent unregulated abuses here in Los Cabos, governmental pressure is mounting to create a system of standards and regulations for our industry.

It is our professional and moral responsibility to our clients to make certain they are protected.

Jay West is a Certified International Property Specialist and a member of the National Association of Realtors (USA) CIPS Network. He has also completed the course work as an NAR Resort Marketing Specialist. Jay is past President of AMPI Los Cabos, and past Chair of the Executive Committee of Brokers of the Los Cabos MLS from 2001-2004. He also chairs the Honor & Justice Commission of AMPI Los Cabos.