In the upcoming legislative period starting in May, Puebla’s state Congress is expected to approve the Real Estate Law, aiming to regulate the sector where eight out of ten individuals involved in home sales operate informally.
Carolina León Soriano, President of the Association for the Defense and Support of the Real Estate Profession (Adagi), emphasized the urgent need to organize the sector as frauds continue to occur, damaging the reputation of real estate agents.
The Issue with Informal Operations
She highlighted that scams often happen through social media, where individuals offer properties they don’t own or lack authorization from the owner to sell.
“In Puebla, there are around 8,000 real estate professionals; however, we lack representation because we’re not formalized. Only 20% of us are truly established and consistent. The rest often change their status within months, claiming to be in the business without proper authorization.”
León Soriano further explained that this irregular situation creates unfair competition for legally registered companies and poses risks for clients entrusting their properties or money for real estate transactions.
Expected Benefits of the Law
Under this context, she suggested that government regulation through the Real Estate Law would help mitigate these issues.
She clarified that they are not against competition but against entities operating without the proper knowledge to conduct registered contracts. This law would ensure that real estate businesses adhere to legal standards.
León Soriano, a former leader of the AMPI in Puebla, noted that it has been 12 years since the Real Estate Law proposal first appeared in the state Congress without success. Now, they hope for its approval in the new legislative period.
Without regulation, she warned, ‘ghost companies’ will continue to proliferate in Puebla, potentially defrauding buyers or homeowners.
Key Provisions of the Law
- Companies must report any fraudulent activities or suspicions of illegal money involvement. Failure to do so may result in penalties.
- Real estate agents will be required to complete 40 hours of annual training and renew their licenses every three years, certified by the state government.
