Beyond the impact that the frauds generate in the real estate sectorthe hardest hit comes to people trying to build their wealth, as a deceptive transaction can mean the loss of a lifetime’s savings.
Although there are estimates that indicate that the real estate industry loses around 600 million pesos a year due to fraudsso far the impact on end users has not been quantified, that is, the victims of scammers who promise attractive options to purchase a property, but in the end it is all a lie.
According to the Mexican Association of Real Estate Professionals (AMPI), the growing housing exclusion, as well as the high percentage of the population that is in the informal market – which prevents meeting the requirements for a bank loan – generate an environment conducive to the increase of real estate frauds.
In this scenario, there are potential buyers who, desperate not to live in a property according to their needs, They risk their life savings and become vulnerable to scams, especially on social networks.
“This phenomenon not only represents a financial tragedy for the victims, but also worsens the crisis by permanently expelling those who have been disappointed”, can be read in the study “Housing in Mexico 2025: Access and Eligibility”, prepared by the AMPI.
How to avoid fraud?
Given the risks, The AMPI suggests a series of steps for those people thinking about carrying out a real estate purchase soon. Thus, the steps to follow are:
- Trade with real estate professionals certified, that is, those who have real estate license in the federal entities where it is required.
- Verify the reputation of the developers in the Commercial Bureau of the Federal Consumer Protection Agency (Profeco).
- Check that the contracts they sign are registered in the Registry of Adhesion Contracts of Profeco.
- Validate the notaries involved in the operation.
- Verify that the parties involved have the corresponding permits, including opinions and construction license.
- Review purchase and sale contracts with the advice of a professional.
Professionalization
For the AMPI, a solution that could mitigate the problem of real estate frauds is to create a national registry of real estate advisors trained, through the modifications to the Federal Consumer Protection Law.
“The importance of professionalization of real estate sector to build trust and reduce risks, such as fraudwhich directly affects the eligibility of families by discouraging formalization and access to credit is crucial,” the report reads.
