The New Michoacan Real Estate Law
The New Real Estate Law (Ley Para la Prestación de Servicios Inmobiliarios en el Estado de Michoacán) was approved in the session hall of the legislative branch in Morelia on December 4, 2014 and published in the Official Journal of the State of Michoacan on December 31, 2014.
The law is in force since January 1st 2015 and their main purposes are:
1. To create a Registry of Real Estate Agents, Agencies & Associations.
2. To keep records of Real Estate Agents´ongoing training.
3. Prevent and avoid any person providing incompetence real estate services.
4. The Real Estate Agent services must provide security and legal certainty to the clients.
The law regulates: Real Estate Agents, Agencies & Associations in the state in Michoacan.
The government authority is SEDECO: Secretaria de Desarrollo Económico del Estado de Michoacán (Secretary of Economic Development).
The Real Estate Services are: property management & administration, consultation, advise, mediation, promoting & marketing, advertising, appraisal and procedures.
The main obligations for Real Estate Agents are: a) to get registered and b) to get a license. License is mandatory starting on January 1st 2016. There will be a claim system against the agents who don´t comply with the law.
The Registry called RAIEM (Registro de Agentes Inmobiliarios del Estado de Michoacán) will be online. Anyone could check out Agent´s credentials and certifications.
In order to be registered at RAIEM and get a license, all agent must have:
a) Active membership in a Real Estate Association
b) Must be trained and certified by an authorized Institute
c) A letter of commitment to abide by the law, regulations and code of ethics.
The basic training program for real estate agents must include technicals aspects about catastro, contracts, urban development, finances, mortgages, taxes, federal, state & municipal laws and regulations, Public registry, informal procedures and all other matters related to real estate services.
Violations and penalties provided by law are caution, warning, fines, disqualification and cancellation of the license. Some of the sanctions will be applied if:
- A Real Estate Agent flaunts to have a license without actally have it.
- A Real Estate Agent or Agency is not register at RAIEM.
- Offer a property for sale without the owner writen permission (listing contract).
- Promote, offer or sale a property without integrating the real estate file first.
- Sell or promise to sale properties under planning without the financial guarantees for completion by the owner.
- Promote, offer or sale a property having any knowledge of any situation that will prevent the completion of the transaction.
- Failure to abide with the Federal Law for the Prevention and Identification of Transactions with Illicit Resources (anti money laundering law).