Real Estate Law - The Professionalization of Realtors in Mexico

In many countries, the provision of real estate services consists of the promotion and marketing of real estate, and it is required that such services be provided by individuals or companies that have gone through an accreditation process with an authority or a certifying association. Such process exists in order to professionalize the quality of service, training and updating of realtors and verify that they act ethically and are penalized for actions that do not conform to required minimum standards. The lack of regulation of realtors, or real estate brokers, in Mexico has led to a market that ranges from global companies with high quality and ethical standards to firms that, because of a lack of employment opportunities in the market, do not have sufficient knowledge or institutional support, which latter situation clearly has a negative impact on confidence in Mexico's real estate sector. Recently, some Mexican states have enacted laws regulating the provision of real estate services. In the case of the Federal District, the Real Estate Services Law of the Federal District (the "Law") establishes the obligation of realtors to register with the Registry of Professional Realtors, and obtain the corresponding accreditation, for which applicants must demonstrate their experience and knowledge in the field. The Law even states that realtors can obtain assistance, at their own risk, from realtor assistants, in order to provide services. Similarly, this Law also establishes an obligation upon companies to employ realtors who are registered and accredited by the Ministry of Economic Development of the Federal District, confirming that they are responsible for the services they provide, but without establishing specific penalties for any failure to do so. Existing laws in Mexico aimed at regulating the provision of real estate services are still in a very early stage, and much work remains to be done, such as establishing codes of ethics, mechanisms for penalties, etc. Nevertheless, it is still important to note that regulation in this sector is here to stay, and it is important to remain informed of progress in this area.