Provision of Real Estate Services in the State of Jalisco in accordance with the Real Estate Law and its Regulations.
The enactment of the Real Estate Law and its recently published Regulations represents a significant step towards the professionalization and regulation of the real estate sector, particularly for Real Estate Service Providers in the State of Jalisco. However, this Law also poses important challenges that require critical analysis from a legal perspective.
The Law and its Regulations emerge in a context where the Real Estate Market has experienced rapid growth, with an increase in real estate transaction frauds, along with a proliferation of real estate agents who, in many cases, lack the necessary training and accreditation to ensure secure transactions. According to data provided during the legislative debate on the Law and its Regulations, only 10% of real estate advisors in Mexico are adequately trained. Given this scenario, the Real Estate Law seeks to establish a regulatory framework that provides legal certainty to both consumers and professionals in the sector.
In this regard, we find that among the main objectives proposed by the Law and its Regulations are:
1. Registration and Accreditation: To promote the registration and accreditation of real estate advisors, agencies, and associations, ensuring that only those with the necessary credentials and knowledge can practice the profession.
2. Fraud Prevention: To reduce attempts of fraud in real estate transactions.
3. Professionalization of the Sector: To promote competitiveness among advisors and agencies by encouraging continuous training and official recognition by State authorities.
Although the Real Estate Law is a necessary advancement, its implementation raises certain questions from a legal standpoint.
1. Non-Compulsory: A debated aspect is the decision not to make the accreditation established by the Law and its Regulations mandatory. While this responds to legal limitations related to freedom of profession, it could also dilute the impact of the Law and its Regulations. Voluntariness could result in partial compliance, affecting the effectiveness of the regulatory framework intended to be established. This is notwithstanding the fact that the Law contemplates the imposition of sanctions on any agent and/or agency that claims to be accredited and is not.
2. Need for a Federal Framework: Finally, it is imperative to point out the need for a regulatory framework at the Federal level. While State legislation is useful, it may be limited in its scope if not articulated with a national system that standardizes the requirements and standards for the provision of real estate services throughout the country. This would not only provide greater clarity and certainty but would also avoid potential conflicts of jurisdiction between Federal entities.
The Real Estate Law and its Regulations are a step forward in regulating a crucial sector for the economy and social welfare. However, its success will depend on its effective implementation, overcoming the constitutional challenges it may face, and eventual harmonization with a federal regulatory framework. As lawyers, we must be attentive to the development of this legislation, evaluating its impact, and contributing to its improvement for the benefit of society and the real estate market.
In addition to advising Real Estate Agencies in their operations, we train real estate agencies and their advisors by means of Diplomas that comply with the legal requirements to certify you as an accredited real estate consultant and agency, since we have the authorization of the Secretary of Economic Development of the State of Jalisco (SEDECO) to act as a training agency in accordance with the Real Estate Law and its Regulations.
Contact us.
Gerardo Torres González [email protected] Luis Andrés Aceves de la Cruz [email protected]