Quintana Roo Real Estate Sector Pushes for Legal Reforms to Curb Fraud

Cancún, Quintana Roo — Real estate specialists in Quintana Roo say the state needs to reform several laws and tighten professional standards for agents in order to strengthen legal certainty and reduce the risk of fraud in property transactions.

Miguel Ángel Lemus, president of the Mexican Association of Real Estate Developers of Quintana Roo, said more work is needed on legal reforms and regulations to prevent real estate fraud in the state and give investors greater confidence.

His first priority, he said, is that licensed real estate advisers work alongside developers before a project begins to ensure it complies with every applicable law and regulation — not just the construction permit, but also a valid environmental impact statement, registration with the Social Security system, and all other required documentation.

Under the proposal, agents and developers would share responsibility for compliance, an approach intended to curb the marketing of projects that later run into legal, environmental or administrative problems.

“The real estate agent and the developer must work together with the same shared responsibility, and we need to start shutting out agents who are not prepared and do not have certification,” Lemus said.

The same standard applies to anti-money laundering rules, he added, because society as a whole benefits from legal certainty and clearer transactions.

The initiative also calls for raising professional standards across the sector and keeping people without the proper training, registration or certification out of real estate deals, given the risks they pose to both buyers and investors.

The broader goal is to give property transactions stronger legal footing and to set up mechanisms that can prevent fraud, misunderstandings and irregular deals.

The sector is among those required to apply stricter oversight and comply with Mexico’s Federal Law for the Prevention and Identification of Operations with Illicit Funds (LFPIORPI), making compliance and professionalization a priority.

The Mexican Institute of Public Accountants in Cancún recently urged businesspeople and professionals to train and keep pace with new requirements and general rules so they do not fall into noncompliance.