The recent reform to the Nuevo León Civil Code regarding real estate pre-sales represents a significant step forward in strengthening the legal security of those who invest in development projects, by reducing risks that, for years, left buyers and investors vulnerable, stated León Acosta, Director of Legal Affairs at AMPI Monterrey.
The specialist explained that, although the reform can still be improved, its scope is sufficient to correct practices that allowed for the raising of funds without clear rules, particularly through so-called purchase offers, used by developers without a specific legal framework.
“We believe this is an important step forward because it significantly reduces the risk for those who invest their money in a project, by providing them with greater legal security,” he noted.
Acosta specified that one of the main impacts of the reform will be the professionalization of real estate advisors, by requiring them to clearly distinguish between concepts such as purchase offers, purchase agreements, pre-sales, and formal sales. He warned that confusion surrounding these concepts has led to numerous legal conflicts, including projects that have accumulated hundreds of civil lawsuits for breach of contract.
“If the advisor can’t properly explain what the investor is signing, it’s very easy for the investor to believe they are buying something when, in reality, they are only making an offer,” he pointed out.
Contrary to the perception that the new rules could hinder real estate activity, the representative from AMPI Monterrey maintained that the requirement to have a valid building permit before starting a pre-sale will not delay projects, but rather make them more efficient and organized.
“Ideally, any development should have all its permits; this reform simply aligns practice with what should be the norm,” he explained.
One of the most significant changes, he emphasized, is the shift in the balance of power between developers and investors, establishing that the mere act of receiving money implies automatic acceptance of the offer.
“Previously, developers could reject offers even years later, when investors already had their money tied up. Now, the moment they receive funds, the offer is considered accepted, leveling the playing field and creating immediate obligations,” he stated.
Regarding the increased legal exposure for developers and marketers, Acosta considered it a fair adjustment.
“Yes, it increases substantially, but it’s a necessary increase to prevent abuses and provide certainty to those who invest their assets in these projects,” he said.
With the reform set to take effect on March 16, the legal director of AMPI Monterrey recommended that those interested in purchasing properties in pre-sale seek advice from certified professionals.
Finally, he invited citizens to contact AMPI, where they can be connected with certified and experienced real estate advisors.
“AMPI has highly qualified professionals; the important thing is to make sure that whoever advises you has the necessary knowledge to protect your investment,” he concluded.
Source: abcnoticias
