Event Coverage
Members Learn about Doing Business with Mexico
Thirty members and guests attended "Doing Business with Mexico" yesterday afternoon and celebrated Cinco de Mayo afterwards with Mexican delicacies. With Global Business Council (GBC) Chair Mark Wong and GBC member Sara Spang both moderating, panelists shared valuable information about both inbound and outbound transactions with clients from Mexico.
Panelists included Nancy MacLeod, a real estate broker/owner of Homes2Buy.com, who owns a villa in San Miguel de Allende, Mexico, where she also represents buyers from the U.S.; Alicia Sandoval, a REALTOR® with Keller Williams Realty in Palo Alto and a native of Mexico; Amber Neil, a REALTOR® with No Borders Realty in San Jose, who has dual U.S. and Mexican citizenship and has been doing business in Mexico and California since 2006. Another panelist, Sal Covarrubias, sales manager for First American Title Company, discussed title vesting concerns, proper identification needs for sellers, and the differences in holding title between the U.S. and Mexico.
The REALTORS® said the best way to tap into the Mexican market is to join AMPI (Asociacion Mexicana de Profesionales Inmobiliarios, A.C.), the largest real estate association in Mexico. Join the organization as an affiliate and attend their conventions and events.
AMPI has ties with the National Association of REALTORS® and is strongly advocating for the licensing of real estate agents in Mexico, because right now, anyone can be a real estate agent there. Travel and networking is key to learning more about the real estate business there and AMPI would be a good source, they said.
Covarrubias said issues regarding Mexicans buying property in the U.S. are similar to that of other foreign buyers. Timing is important and whether the foreign buyer will be personally present at closing. Also, agents need to verify their client's legal name. It may not matter much when the client buys the house, but it will matter when it is time for that client to sell the property.
Transactions can take months to conclude in Mexico because financing is tricky. It's also why Mexicans who buy property here get culture shock when the process is quick, and they can close as soon as three or seven days.
Also, there is no disclosure when buying property in Mexico, so REALTORS® need to take time to explain to their Mexican clients the transaction process and all the disclosures needed when they buy property in the U.S.
It is expensive and complicated to do business in Mexico. You need to have a visa and a work permit. It is best to do business via referral, but make sure you are dealing with a reputable agent there, preferably one who is a member of AMPI.
Mexico now has title insurance, but Covarrubias noted title insurance there is not standardized like it is in the U.S. American title insurance is needed for new construction, for example, while only Mexican title insurance can be used for a resale.
The panelists want agents to be aware of cultural differences when dealing with Mexican clients. Mexicans are more social people and want to get to know you personally first before deciding whether or not to do business with you. They value social graces, good manners and respect. Mexicans are not keen on email or text. They want to have a one-on-one, eye-to-eye conversation with their agent, and many meetings.
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The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.