Everything you need to know about NOM-247 for the real estate sector
If you are marketing one or more developments in Mexico and still do not know how NOM-247 applies to the real estate sector, we invite you to continue reading this article.
As of September 2022, the Mexican Official Standard NOM-247-SE-2021, which establishes mandatory business practices and requirements that brokers, agents, developers and real estate professionals must follow in order to avoid economic fines or suspensions of activities, went into effect throughout Mexico.
In general terms, NOM 247 seeks to guarantee the rights of consumers, mainly against possible fraud derived from the advertising or commercial practices of real estate companies, construction companies, financial institutions, developers and other market players.
But let us not see this as a restrictive rule, as it is undoubtedly an opportunity to stop unfair competition, as well as informality. This is a key moment to professionalize the sector's activities.
If you are marketing one or more developments in Mexico and still do not know how NOM-247 applies to the real estate sector, we invite you to continue reading this article.
What does NOM 247 say about the real estate sector?
It establishes requirements that real estate marketers must comply with both in their advertising and in sales contracts and intermediaries, so that the consumer has all the concrete and non-speculative information related to the purchase of a home.
Does NOM 247 apply to me?
This informative compliance standard applies to suppliers that are developers, promoters, builders and advisors for the purchase and sale of real estate and land for residential use; therefore, real estate developments for offices, warehouses, shopping malls, etc. are excluded.
Remember that if you are a private individual who, for example, wants to sell his aunt's house with a direct deal, NOM 247 does not apply to you, as it is more focused on pre-sale processes.
What must be reported to comply with the standard and avoid penalties?
According to the Official Gazette of the Federation, suppliers are obliged to inform and respect all conditions published or used in the marketing for the delivery of a real estate property, among which are:
- Prices
- Rates
- Units available
- Warranties
- Quality
- Measures
- Materials
- Finishes
- Insurance
- Interests
- Charges
- Bonuses
- Terms, form and conditions of payment
- Payment and delivery terms and dates
In total there are more than 50 points of compliance, so now more than ever there must be greater control over the material that agencies or marketing teams prepare for the advertising of developments. Direct communication from sellers must also be ensured to make sure that the homes they are promising comply with what they are offering to the client and that they are still available.
Automated quoting and inventory tools will help to avoid gaps in customer-facing information.
How to avoid being fined for non-compliance with NOM 247?
To avoid fines, you must follow the guidelines for real estate advertising, have minimum elements that must be included in the purchase and sale contracts, pre-sale and promise of sale, as well as the mandatory registration of adhesion contracts approved by the Federal Consumer Protection Agency (Profeco) prior to their commercialization.
In addition to this, you must respect the rights of the buyer, as well as comply with the obligations related to the delivery of the property and guarantees. Likewise, comply with the commitments related to the deed, financing and notary expenses.
Some questions we have heard is "can I really be fined up to 10.5 million for non-compliance?" And the answer is yes and more when considering that there are around 50 points of compliance that marketers must take care of.
The regulation establishes that the authority can make an inspection or review due to anonymous complaints, so at any time they can make a visit to review compliance with all the points that involve NOM 247.
How can I comply with all the requirements of NOM 247?
We know it sounds difficult, but the alohome is on your side to make it easy and possible, since we have a platform made up of an intelligent ecosystem that allows you to monitor from a single point the communication, information, inventory, quotes and compliance with federal regulations.
