Regulation of Pre-Sales by Nuevo León Congress and Municipalities
The Nuevo León Congress and some municipalities are working on regulating real estate pre-sales to provide buyers with legal certainty in property acquisition. This effort aims to address concerns about developers’ ability to deliver on their promises.
Background and Relevance
Juan Manuel Escobedo Garza, president of the Asociación Mexicana de Profesionales Inmobiliarios (AMPI) in Monterrey, highlighted this ongoing regulation process. Real estate advisors face clients who are wary of pre-sales due to uncertainty about project completion. Developers are urged to secure necessary permits, advance the executive project, and provide a bridge loan to ensure project viability.
AMPI’s Call for Developer Certification
Real estate professionals, who interact directly with clients, are concerned about fraud and speculation. AMPI is working to certify developers who meet all necessary requirements for initiating pre-sales.
“We want to know who we’re working with, as advisors represent the public,” Escobedo Garza explained. “AMPI aims to certify developers nationwide who comply with all necessary procedures, ensuring security and confidence in their projects.”
Existing Efforts and Proposed Solutions
In March, PAN’s diputado Carlos de la Fuente and Santiago’s alcalde David de la Peña presented an initiative to reform the Código Civil and Ley de Asentamientos Humanos, addressing pre-sale fraud due to developers’ lack of resources or necessary permits.
Although not yet approved, the PAN asserts that this issue is on the local Congress’s Agenda. Meanwhile, Escobedo Mijes, Mayor of Escobedo and president of the Metropolitan Coordination Table, proposed mandatory developer bonds for pre-sales. He emphasized that the local Congress must establish legal safeguards for regulating these operations.
Key Questions and Answers
- What is the issue? Concerns about real estate pre-sales, with buyers uncertain if developers can deliver completed properties.
- Who is working on a solution? The Nuevo León Congress and some municipalities are regulating pre-sales.
- What does AMPI propose? Certification of developers who meet all necessary requirements for pre-sales.
- What are the proposed regulations? Developers must present permits, have a trust, an executive project, and a bridge loan to ensure project viability.
- What is the status of the proposed reforms? The initiative hasn’t been approved yet, but it’s on the local Congress’s Agenda.
