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| Questions
and Answers about local Ampi* Real Estate Practices.
Part I
By Harriet Murray
May, 2004 |
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What two rules
apply to how an AMPI real
estate professional may advertise
a property? The agent must
first obtain authorization
from an owner before advertising
his property. The agent
must also obtain authorization
from a listing agent to promote
or advertise that listing
agent's property.
-
What is an
exclusive right to sell?
An owner may enter into a
contract with a real estate
professional to empower the
agent to become his authorized
representative to promote
his property. The authorized
agent of the seller must
give priority to this listing
and seek buyers. In the case
of an offer on the property,
the authorized agent will
represent the owner and his
best interests. The authorized
exclusive agent for the
seller shall, according to
the terms of the listing
contract, receive compensation
in the event of a sale of
the property. The listing
agent may cooperate with
other agents and share his
commission.
-
What types
of fees can be charged by
a real estate professional?
The fees collected must be
fair compensation for the
work and knowledge that the
agent has demonstrated. His
fees should be in accordance
with the polices of the
area where the property is
located. These fees can be
based on a percentage of
the purchase price or can
be a fixed amount.
-
What is the
commitment that an agent
has to his principal? When
the agent accepts any business
from a principal, he must
make a commitment to promote
and protect his client's
interests. The agent has
an obligation to be loyal
to the person who has entrusted
him with the business of
buying or selling a property.
Of utmost important is the
duty of the agent to act
with absolute justice and
honesty towards all parties
involved in a transaction.
-
What information
must a real estate professional
give to his Buyer client?
The agent must disclose what
he knows to be the condition
of the proposed property,
the feasibility or completion
of the proposed transaction,
and all the circumstances
involved in the business
entrusted to him as an agent.
-
What if the
buyer or seller wants to
consult an attorney, notary
or other professional? The
real estate professional
must never oppose the wish
of any party to the transaction
to consult an outside expert
opinion in regard to: problems
affecting the property, restrictions
or limitations which could
affect the property, the
structural soundness of the
construction, or whether
correct materials were used
in construction of the
property. The real estate
professional must cooperate
with all consultants and
advisors that his principal
needs, so that the principal
can be comfortable with
the real estate transaction.
-
What if a
real estate agent, acting
for a client, obtains a discount
on a service or product?
This credit or benefit shall
always be credited to the
client.
-
Is there a
guildline within AMPI on
confidentiality requirements
of an agent to his client?
Absolutely. The agent must
not divulge or give opinions
or information about clients,
which may be detrimental
or which have been said to
him in confidence by his
principal.
-
Should an
offer on a property be in
writing? Yes, the agent must
attempt to obtain written
offers to present to the
seller.
-
Does a seller
have the right to see more
than one offer at a time?
Yes, the agent is obligated
to present all written offers
to the owners, whatever the
offer may be. The seller
has the right to compare
and decide whether an offer
is acceptable or not, based
on the terms presented in
the offer.
-
May a real
estate professional acquire
for himself or his company
a property that he has listed?
Yes, the agent involved in
a listing may buy the property,
but he must inform his client
of his intention and should
suggest that the transaction
be handled by using a professional
appraisal to establish a
fair price.
-
May a real
estate professional give
an opinion of value of a
property, which he has or
could, have an interest in?
The agent may give an opinion
of value, if he also discloses
that he has a potential
conflict of interest.
-
• What
if the agent has no experience
in the area in which
he is being asked to give
an opinion of value?
If a market area is out
of his expertise, the professional
must consult an expert
appraiser. Every circumstance
surrounding this case
must disclosed to the client.
 AMPI is a national Mexican
Association of Real Estate
Professionals. Members have
voluntarily met requirements
to be in this organization
and agree to adhere to certain
standards of education and
behavior.
"For your selling ought not
to be a work that is within
your own power and will without
law or limit, as though you
were a god and beholden to
no one; but because this selling
of yours is a work that you
perform toward your neighbor,
it must be so governed by law
and conscience that you do
it without harm and injury
to your neighbor." Martin
Luther, 1524
This article is based upon
legal opinions, current
practices and my personal
experiences in the Puerto
Vallarta-Bahia de Banderas
areas. I recommend that each
potential buyer or seller
conduct his own due diligence
and review. Harriet
Cochran Murray
For
additional information on
properties, for sale or lease
within the bay please visit Harriet
Murray website, call
or e-mail me at: harriet@casasandvillas.com
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