ASOCIACION MEXICANA DE PROFESIONALES INMOBILIARIOS A.C.
The english version is a courtesy translation. The spanish version of the Code of Ethics will always prevail.
Code Of Ethics of the Asociación Mexicana De Profesionales Inmobiliarios, A.C. to its Extraordinary National Assembly, held on June 3, 2022, in San Carlos, Guaymas, Sonora.
OVERVIEW OF THE CODE OF ETHICS
The provisions of this Code of Ethics will be followed by all associates and affiliates of the Asociación Mexicana de Profesionales Inmobiliarios, A.C and shall be made known to the public.
Every member of the association shall consider himself as a real estate professional who acts as an agent of change that contributes, through his/her work, to the development of the Real Estate industry and profession in Mexico. The integrity and conduct of the real estate professional, in all his actions, shall be the guideline for the professionalism and good impression he/she will make when dealing with clients, authorities, and other real estate professionals.
This Code of Ethics will regulate the behavior and commitment of all Real Estate Professionals to:
I. Professionalism in all their activities;
II. Professionalism to the public in general;
III. Professionalism to all clients;
IV. Professionalism with other real estate professionals.
THE REAL ESTATE PROFESSIONAL
Article 4: Education and Training
Qualified professionals will train the real estate professional, obtain required certifications, and will participate in an ongoing continuing education program regarding all regulations and/or any changes to protocol in the real estate profession, to maintain their professional membership and status. Associates and Affiliates will have the obligation to be up to date yearly by keeping informed of any changes that may affect real estate matters within his/her city, state, or on a national level. Associates and Affiliates will contribute to this ongoing knowledge with his/her firsthand experiences while collaborating with others to improve the real estate environment of the Association.
When required, Associates and Affiliates will provide the public with accurate and relevant information on taxation, legislation, and the best practices of real estate use, land use, urban planning, and other aspects related to real estate.
Likewise, they must fully observe the guidelines established in the Official Mexican Standard NOM-247-SE-2021, published in the Official Gazette of the Federation on March 22, 2022, as well as by the content of the legal provisions of the current Federal Consumer Protection Law and its regulations.
Article 5: Knowledge of the Market
The real estate professional has an obligation to know the rules and regulations of his/her state and local sector. The real estate professional will stay informed about any latest changes in the real estate market, using all the means at his disposal to achieve such purposes.
5.1: If needed, the real estate professional will request the opinion of qualified experts to guide the client on the fair value of the property, as well as the conditions and terms of all legal documents, such as surface of land, square meters of construction, etc. The real estate professional will verify that the public deed proves legal ownership, including all details that correspond to the Public Registry of Property, National Agrarian Registry, Institute of the Registry, and any other authority or organization recognized the Mexican Republic. Ensure that the physical descriptions of the real estate and the legal descriptions of the real estate correspond to the property taxes and the payment of water rights, as well as any other taxes or fees of local, state, or municipal nature. The location of the real estate property must have the specific land use certificate for which the property being listed and marketed is intended.
Article 6: Innovation and Technology
All real estate professionals will educate themselves and learn about the latest innovations in technology and technological tools available to conduct his/her professional real estate activities in the best and most effective way. Real estate professionals will avoid displaying any ignorance or lack of expertise that would prevent their clients or other real estate professionals from obtaining accurate professional advice, information, and recommendations in real estate matters.
Article 7: Obligations of the Real Estate Professional
All real estate professionals shall comply with the following standards of conduct regarding their professional activities:
I. Comply in a timely manner with the legal and fiscal obligations that the governing authority requires of the real estate profession that, in a declarative but not limiting way, can be the documented described, and inscribed in registries or registers. Obtain all authorizations, certifications, and comply with any procedures that authority requires…
II. Comply with the rules and regulations of the Association in accordance with its Statutes.
III. Act with expertise to contribute to the protection of people/clients against fraud, abuse, monopolistic practices, or any action or deliberate omission that may affect the clients and their assets.
IV. Refrain from engaging in or committing any act that attacks the dignity and integrity of the real estate profession.
V. Refrain from conducting real estate operations in which, for any reason, the assets, or interests of clients, third parties or other real estate professionals are harmed or put at risk.
VI. Actively participate in the required training and academic development programs provided by the Association.
VII. Refrain from interpreting, in a discretionary manner, the laws, regulations, Statutes, and this Code of Ethics with the purpose of affecting any real estate activity. Ensure that the same ethical conduct prevails among other real estate professionals you are working with.
VII. Have a system to report information and complaints available to the general public, clients, and other real estate professionals including being able to make telephone, email, or written complaints.
VIII. Observe and always comply with the provisions of the Law for the Provision of Real Estate Services (Ley de Prestación de Servicios Inmobiliarios) or its corresponding counterpart in the federal entity, as well as the existing regulatory norms in each of the Civil Associations of the sections that are integrated in the Asociación Mexicana de Profesionales Inmobiliarios, A.C.
RELATIONS WITH THE GENERAL PUBLIC
Article 8: Obligations to the General Public
In relation with the general public, the real estate professional must:
I. Perform their duties in a professional manner and avoid putting client’s assets at risk.
II. Know the property and study the documentation of the real estate offered prior to its acceptance for administration or sale, to avoid any errors or omissions that could harm the general public, as well as clients and/or other real estate professionals.
III. Comply with the legal descriptions in matters of disseminating information about a property in all advertising; avoiding and errors that would lead to errors, inaccuracies, or deception to the detriment of third parties, clients, and/or other real estate professionals.
IV. Refrain from exaggerating the qualities or features of the real estate being offered or state errors in terms of location, characteristics, size, amenities, or prices.
V. Refrain from contributing to the recording of false information in deeds or other public documents, or falsifying declarations before any authority.
VI. Conduct yourself truthfully always, avoid concealing information or preventing clients and other real estate professionals from accessing information that could affect a client’s assets or the real estate transaction.
VII. Refrain from giving any preferences or engaging in discrimination regarding the professional services offered to any service applicants.
VIII. Do what is necessary to protect the information you receive from the general public, clients, or other real estate professionals, as well as preserve any and all documents, whose attention, privacy, administration, or custody are under your protection, in accordance with the applicable regulations and provisions.
IX. Refrain from obtaining, making public, or appropriating, by any means, personal information, photographs, statistics, source codes, or any other data, with the purpose of obtaining a benefit, without the prior express written authorization of the third party, client, or other real estate professional. This is regardless of whether said information is publicly available in files, records, Internet sites, or … in general, any system where said information can be obtained.
X. For the protection of all the parties involved in a real estate operation, as well as other real estate professionals who may participate, the real estate professional shall ensure that all information, agreements, promises, and contracts related to each transaction are recorded in writing. In all the relative documents, the exact agreement reached by the interested parties will be recorded, and they will sign in accordance, keeping one copy each and leaving another in the possession of the real estate professional for his/her records and file.
XI. Act with absolute justice and honesty towards all parties involved in all real estate transactions.
XII. In general, observe and comply with the provisions provided by the Official Mexican Standard NOM-247-SE-2021 of the Ministry of Economy of the Federal Government and the Federal Consumer Protection Law (Secretaría de Economía del Gobierno Federal y de la Ley Federal de Protección al Consumidor).
RELATIONSHIPS WITH CLIENTS
Article 9: Relationships of the Real Estate Professional with Clients
The Real Estate Professional has an ethical obligation to his/her clients, for which he/she must:
I. Commit to promoting and protecting the interests of the client and an obligation of loyalty to those who have entrusted him/her with their business.
II. Obtain written authorization from the owner or his legal representative regarding the buying or selling of the real estate.
III. Review the legal and technical documentation of the property and the credentials of the owners, to make sure that the information is accurate and in accordance with the law. Where appropriate, find out if there is any litigation, embargoes, liens, marginal annotations, or any limitations on the property, and obtain and/or recommend the assistance and/or advice of a lawyer specializing in real estate and tax matters.
IV. Inform clients about the correct way to review their own documentation and those of third parties involved in the real estate transaction. Provide assurance and guidance about the proper protocol to be always followed, always.
V. Instruct clients on the advantages that granting exclusivity to a real estate brokerage provides for both parties, such as the commitment to work entirely on the behalf of the clients.
VI. If you receive a reduction or discount when making a payment on behalf of the client, the bonus will always go to and be to the benefit of the client.
VII. Be extremely zealous in guarding professional secrecy. Do not express opinions or give information about the circumstances or situation of your clients or about what your client has entrusted to you to do for him or her. Honor and always abide by professional secrecy, with all clients, and do not give out this information to anyone, for any reason.
VIII. Ensure that the offers made on the properties clients have for sale, lease, or administration, are always in writing. In all cases, the real estate professional will have the obligation to present to the owner the offers that he/she receives, in writing, signed by the professional, and signed by the interested parties. The real estate professional will explain the scope, conditions, and implications of the proposal; explaining objectively about the possible benefits, damages, or the possibility of achieving an agreement different from the one offered, to put the client(s) in a position to decide objectively on the professional information presented.
Article 10: Professional Communication with Clients
The real estate professional, in compliance with the guarantee of the interests that have been entrusted to him, must inform his clients with absolute honesty and truth about:
I. The qualities and any defects of the real estate that is provided to you to promote for sale, acquisition, or lease.
II. The procedure, paperwork, required steps, approximate costs, as well as the ease or difficulty of conducting the real estate transactions.
III. Inform the client that they have the right to consult a professional or third party, regardless of their personal, professional, or technical expertise about:
a) Problems that concern the property.
b) The restrictions or limitations that may be present on the property.
c) Any actions or restrictions that could limit the use or enjoyment of the property.
d) About its structural stability; or
e) On the materials used in the construction of the property.
f) In general, the real estate professional will provide access to the property and the necessary information any specialists or technicians require on any matter that the client (s) indicates, so that the client (s) have certainty and assurance about the acquisition or disposition of the real estate.
IV. Prepare and sign the contract for the Mercantile Commission for the provision of professional services with the client regarding the promotion, sale, or commercialization of the corresponding real estate. Clearly indicate the rights and obligations of each of the parties, to avoid confusion, contradictions, or implications that could violate the rights of the contracting parties, or the non-observance of the current legal provisions, always ensuring that there is fairness and clarity in the content of the respective contract.
Article 11: Real Estate Professional Fees
The fees charged by the real estate professional must be fair compensation for their work and knowledge for all actions leading to a sale, taking as reference, the area that the property is located in. Conventional agreements between the contracting parties will be in writing and prevail so that there is no room for any doubt.
These fees may be calculated based on a percentage of the amount of the sale price and in the case of a sale or lease, on the gross or net income, as a fixed amount.
In no case may the real estate professional charge a “surcharge,” since this practice is considered unfair compensation and is a detriment to the interests of the clients.
Article 12: Prevention of Conflict of Interests
In the event that the real estate professional is interested in acquiring or leasing for himself or for his company any property that has been proposed by a client, he must inform the client of this desire and suggest that an expert appraise the property in question. Once this is done, and if both parties agree, the acquisition can be conducted.
Article 13: Price and Value of Properties on the Market
When issuing an actual amount or an estimate on the price of a property, the real estate professional will conduct a careful analysis of all the factors that can affect the value. The real estate professional will carefully analyze the information regarding offer prices, closing costs, location, size, cost of construction materials, and other relevant factors that can affect the price of the property.
To know the true value of a property, the real estate professional will obtain the opinion of a qualified expert or professional regarding the matter of valuation, thereby avoiding inaccuracies or errors in terms of location value, land surface, and total construction values. The real estate professional will verify with experts that these amounts are correct and align with the property deed, (title) with the license or construction documents of the property. If these do not exist, an opinion is issued regarding the property by a qualified and authorized professional who will be responsible for the entity and will determine costs for construction materials, and the finished edifice.
You should never issue an opinion on the value of property that you do not have the expertise or experience for. You are obliged in these cases to consult an experienced and qualified appraiser. The appraiser in these cases, will disclose in writing, all his/her findings to record it to the client.
The real estate professional must never issue an opinion on the price of a real estate in which he/she has a personal or present interest in, unless this circumstance is made known to the client, in which case, he/she must excuse himself immediately and consult an expert appraiser regarding the value of the real estate.
RELATIONSHIPS WITH OTHER REAL ESTATE PROFESSIONALS
Article 14: Your Relationship with other Real Estate Professionals
In all your relationships with other real estate professionals, you will act with respect, loyalty, and responsibility. You will:
I. Refrain from placing a sign, banner, or poster on the property if there is already one from another accredited real estate professional.
II. Refrain from advertising properties that have been offered directly by the owner or another real estate professional. If an offer comes from another colleague, you must have the authorization granted in writing, by the listing real estate professional, to use any communication channel or means of advertising the property, and comply with legal provisions regarding copyright, property, or information. You must abide by the terms of the provisions of the Official Mexican Standard (Norma Oficial Mexicana) NOM-247-SE-2021, issued by the Ministry of Economy of the federal government.
III. Refrain from delivering your business cards or any other means of contact to clients who are working with other real estate professionals, without their authorization.
IV. Refrain from withholding keys, means of access, or in any way impeding the display of another real estate professional’s property; and in case of having the keys or means of access to a property, return them to the real estate professional who listed the property so that he can continue with the promotion and of the property through his/her agency.
V. Identify yourself to colleagues as a real estate professional from the beginning of the call or first contact, then request information about a property that you or your client is interested in.
VI. Deliver as soon as possible the fees that belong to the real estate professional with whom you share the real estate transaction in the terms agreed in writing for the joint venture. Avoid incurring ill will regarding a reduction or deduction of fees if there is previously no agreement on such conditions.
VII. Shared operation agreements between more than two real estate professionals must be proposed from the beginning of the professional relationship and be accepted by all the parties involved and be established in writing to avoid confusion and/or breach of obligations or agreements.
VIII. Be punctual for appointments, honor verbal commitments, and/or sending information to other real estate professionals. Confirm all appointments, regardless of whether they are made in person or virtually.
IX. Promote customer registration to avoid repeatedly displaying or submitting information about properties.
X. When a property is offered and the client receives information from another real estate professional, it is the duty of the real estate professional to always respect the other professional’s protocol when requesting appointments, submitting proposals, or disseminating information, always avoiding addressing the owner directly, unless you receive authorization in writing from the client’s agent to do so. Respect all financials in place for all transactions that the other real estate professional has given you.
XI. Refrain from using information from another real estate professional without the express authorization from him/her; and
XII. Refrain from indicating that a property is already sold or rented until there is a signed lease or sale contract, or a promissory note of sale has been made.
Article 15: Undue Advantage with other Real Estate Professionals
The real estate professional should not try or seek an advantage or competitive edge over other colleagues. It is the real estate professional’s obligation to share with colleagues, their experience, knowledge of the market, and all information that they have acquired through their experience and transactions.
Article 16: Arbitration of Controversies
If any difficulty arises between two real estate professionals of the same Association, the matter must be submitted in accordance with the protocol set forth in the statutes of the chapter, so that these issues can be resolved; this is based on the principle of sectional autonomy of the Asociación Mexicana de Profesionales Inmobiliarios.
Likewise, the parties in the corresponding professional relationships may choose to use the arbitration procedures and process provided for by the national statutes.
The arbitrator will be made up of people chosen from members of the Association and never before courts of common authority. The real estate professional must submit to the ruling issued by the arbitration, and if applicable, observe the regulatory provisions provided for in the national statutes.
Article 17: Matters for Knowledge of the Honor and Justice Commission
When the real estate professional is accused of unethical practices and does not feel guilty, or in case the real estate professional feels that there is a breach of obligations by his colleague that may imply a violation of this code, or the sectional statutes, he/she must voluntarily present the pertinent facts to the Honor and Justice Commission of the chapter to which he/she belongs and, in the second instance, after fulfilling the corresponding requirements, before the National Honor and Justice Commission.
Article 18: Respect for other Real Estate Professionals
The real estate professional will refrain from commenting or making an opinion on the performance or on the business practices of other real estate professionals of the same chapter, or of other real estate associations.
If an opinion is officially requested, it must be issued with absolute adherence to the Code of Ethics of their chapter, and it will always be based strictly on reality, with courtesy, and with respect for the integrity and dignity of the Real Estate Professional.
Article 19: Ethical Behavior in the Exclusive Real Estate Company
The real estate professional must refrain from asking the owner to change to his/her company or accept the exclusive rights that another real estate professional has in force.
In all cases, the real estate professional must inform the owner/client that his/her chapter’s Code of Ethics prevents him/her from requesting or accepting an exclusive, and the real estate professional must respect the rights of the former until the term of said exclusive expires, even if the owner wishes to give him/her an exclusive real estate contract.
Likewise, the real estate professional must refrain from stating that he has an exclusive contract if he only has a non-exclusive option or authorization from the owner.
Both the non-exclusive option or authorization, as well as the exclusive one, must be in writing and signed by the owner(s) of the property.
Article 20: Respect for Colleagues, Affiliates. and Other Associates
The real estate professional must obtain prior consent from another colleague or company to agree to collaborate with or invite any employee or real estate professional to collaborate with them. In the event that he/she works as an affiliate of a colleague or associate, this registration must be included in the Association in order to keep the records updated; if such registration is not made, the Honor and Justice Commission of the corresponding section and the National Commission of Honor and Justice may be informed when it is a matter that could correspond to the competence of two or more different chapters.
RESPONSIBILITY TO THE ASSOCIATION
Article 21: Respect and Responsibility to the Association
In the event that the real estate professional has the responsibility, administration, control or custody of the assets the Association, the real estate professional must carry out an adequate administration of its assets and resources in compliance with the legislation, statutes, regulations, formats, manuals, and generally accepted accounting principles stated, avoiding diversion of resources, improper management of the assets, or incurring any omissions that harm the associates, affiliates or the association.
In these cases, the real estate professional must act with the greatest care and obtain authorization from the management or administrative bodies of the Association when appropriate.
Failure to comply may be brought to the attention of the National Commission of Honor and Justice to determine consequences or sanctions.
Article 22: Work in Favor and on Behalf of the Association
The real estate professional must actively participate in all the work determined by the Assembly and, where appropriate, the governing and administrative bodies of the Association.
Real estate professionals must avoid assuming a position or responsibility in the Association without having the corresponding knowledge about the Association, which will be given and applied by the Training, Research and Statistics Center of the Association.
Article 23: Sanctions for Non-compliance with the Code of Ethics
Failure to comply with this Code of Ethics by any member of the Asociación Mexicana de Profesionales Inmobiliarios, A.C., may be sanctioned in the first instance by the Honor and Justice Commission of the corresponding section and in second instance by the National Honor and Justice Commission.
The sanctions and the procedures to impose sanctions will be subject to the provisions of the National Statutes and, where appropriate, in the Chapter Statutes.
First. The Code of Ethics approved in the Extraordinary National Assembly (Asamblea Nacional Extraordinaria) held on November 7 (seven) 2000 (two thousand) is abrogated.
Second. This Code of Ethics will enter into force the day after its approval by the Extraordinary National Assembly.
Third. Publish it for greater knowledge of associates and affiliates in the Association’s own media.