JOSÉ GUADALUPE OSUNA MILLÁN, STATE GOVERNOR, HEREBY MAKING EXERCISE OF THE FACULTY CONFERRED BY ARTICLE 49, FRACTION XVI, OF THE POLITICAL CONSTITUTION OF THE FREE AND SOVEREIGN STATE OF BAJA CALIFORNIA, USING FOUNDATIONS FROM ARTICLE 3 OF THE ORGANIC LAW OF THE PUBLIC ADMINISTRATION OF THE STATE OF BAJA CALIFORNIA; AND

CONSIDERING

1. That on October 15th, 2010 the Law that Creates and Regulates the state registry of property management agents and real estate agents in the state of Baja California was published in the State’s Official Diary, serving the purpose of the creation and establishment of the rules and principles that regulate the State Registry of Real Estate Agents in order to serve and to have a control of the operations related to the commerce, lease, trust, sale, or any other type of contract of Real Estate property, including the administration, commercialization or consulting of the previous, which are developed by Real Estate agents.
    
2. That the creation of the State Registry of Real Estate Agents, which is referenced in the previous statement, is established as an organization with the purpose of providing better juridical certainty to individuals: providing the listing of juridical and people that practice Real Estate operations in the State to the different governmental orders, enterprise organisms and to the general population in order to guarantee that said people have the skills and professional experience to satisfy quality and price expectations; to professionalize real estate agents; and at the same time guaranteeing the compliance of the obligations that real estate operations should generate.
    
3. That in order to make a proper enforcement and due compliance of the precepts contemplated in the Law that Creates and regulates the State Registry of Property Agents and Real estate agents in the State of Baja California, and with the purpose of complying with the second transitory article in said law, it is necessary to issue this regulation, in order to precise and detail the relative dispositions for capacitation and enrollment of real estate agents into a registry and revalidation of said registry, inspection visits, proof of enrollment, and also the sanctions of non-compliance according to the Law and the following regulation, from the registered Real Estate Agents.
    
4. That the previous statements are congruent with the objectives marked in the State Development Plan (2008-2013), which consists in the development of a government that guarantees, promotes and acts within the rule of law, bringing with it even more confidence and legal certainty to the juridical acts celebrated by the people and enterprises, with the ends of establishing the basis for an integral human development and economic competitiveness.
    
5. That in conformity with the statements provided on articles 52, fraction I of the Political Constitution of the Free and Sovereign State of Baja California, and 9 of the Organic Law of the Public Administration of the State of Baja California, the dispositions that the Executive State dictates in the use of its faculties shall be authorized with the signature of the Government Secretary.
    
6. That according to the disposed statements on articles 49, fraction XVI of the Political Constitution of the Free and Sovereign State of Baja California, and 3 of the Organic Law of the Public Administration of the State of Baja California and, in response to the disposed statements in the previous considerations, the State Governor has the faculty to formulate and expedite the regulations for the good handling of public administration, as in this case, for which the following is expedited:  

THE REGULATION OF THE LAW THAT CREATES AND REGULATES THE STATE REGISTRY OF REAL-ESTATE AGENTS AND PROPERTY MANAGEMENT AGENCIES IN THE STATE OF BAJA CALIFORNIA

CHATPER I

GENERAL PROVISIONS

ARTICLE 1 – The following order has the purpose of regulating the dispositions contained in the Law that Creates and Regulates the State Registry of Real-Estate Agents and Agencies in the state of Baja California, in terms of its application and interpretation by the Directorate of Public Registry of Property and Commerce (Dirección del Registro Público de la Propiedad y el Comercio).

ARTICLE 2 – In addition to the definitions provided in article 2 of the Law that Creates and Regulates the State Registry of Real-Estate Agents and Estate Agencies in the State of Baja California, for effects of this ruling, it will be understood as:

1. Law: to the Law that Creates and Regulates the State Registry of Real-Estate Agents and Estate Agencies in the State of Baja California;
    
2. Director: To the Director of Public Registry of Property and Commerce.
    
3. Intermediation: to the activity exercised by a real-estate agent between two or more people for the purpose of specifying a juridical business.
    
4. Brokerage: to the diligences, jobs and agencies that a real estate agent makes in favor of the person which entrusted the development, analysis or execution of a juridical business.
    
5. Inspection Visit: to that diligence that a public server makes by designation of the Directorate, based on an inspection order, and originated from an enrollment application or revalidation of said enrollment in the registry, from a complaint, or to verify the law enforcement and also the enforcement of this document;
    
6. Inspection order: The document emitted by the Director, or by the public servant who has said faculty delegated, by whom it will be authorized to other public servers of the dependency to develop and make an inspection visit.
    
7. Annual program: Annual Program of Capacitation, Update and Professionalization in Real Estate Operation Matters; and
    
8. Regulation: To the regulation of the Law that Creates and Regulates the State Registry of Real-Estate Agents and Estate Agencies in the State of Baja California; 
    

ARTICLE 3 – It’s the Director’s faculty to designate the public servers of the Directorate which will realize by their means the functions of enrollment, management and administration that are relative to the Registry, including the activities of inspection, development and execution of the Capacitation, Update and Professionalization programs that are referred by the Law.

CHAPTER II

ABOUT THE ANNUAL PROGRAM

ARTICLE 4 - The annual program has the purpose of establishing a set of systematized and organized activities which serve the purpose of acquiring, developing, complimenting, improving and updating the knowledge, abilities, and aptitudes of the registered Real Estate Agents so that they have an efficient performance of their activities in the field of Real Estate Operation.

ARTICLE 5 – The annual program shall contain the basic aspects which make possible the methodological consistency and uniformity for its accurate execution and shall include at least the following themes:

1. Urban planning and salary regime
2. Juridical regime of properties in Mexico and particularities in Baja California;
3. Public registry of the property;
4. Valuation of properties;
5. Fiscal charges related to the transfer of real estate;
6. Ethical formations of registered Real Estate Agents, and deontological principles of real estate activity; and
7. Other topics related with real estate activities, which shall be determined by the Directorate, and also those that are proposed by the registered Real Estate agents and that get authorized by the Directorate.

ARTICLE 6 – The Annual Program will be formulated and executed by the directorate, according to the statements provided by Law and this regulation, with the participation of the enrolled Real Estate Agents, to whom will be called to submit their proposals to said dependency on November 30 of each year.

ARTICLE 7 – The Director will be responsible of the execution of the establishments in the Annual Program, including the application of exams that derive from it, guaranteeing that the capacitation, actualization and professionalization is given to the enrolled Real Estate Agents.

Also, the Directorate can coordinate with civil associations, public or private organisms, and educative institutions either public or private, for the accomplishment of capacitation, actualization and professionalization tasks for the enrolled Real Estate Agents.

ARTICLE 8 – The Directorate shall publish the Annual Program to the registered Real Estate Agents before the month of March each year.

CHATPER III

ABOUT OBTAINING ENROLLMENT IN THE REGISTRY

ARTICLE 9 – In order to obtain enrollment in the registry, the interested user must credit the mentioned requirements on article 6 of the Law, shall present their application in a written form to the Director’s office, or, at the local Registry Office in the state, who will reissue the document to the Directorate, for the corresponding response.

In the case of a juridical person, they shall do the procedure via their legal representatives, crediting their legal faculties and address of their parent or subsidiary and making use of a corresponding charter or assembly act.

In the case of a natural person, they shall add a copy of their identification with a picture emitted by an official Mexican authority.

ARTICLE 10 – The solicitant shall present in written form their manifesto, under oath of complying with the training and actualization that is established in the Annual Program.

CHAPTER IV


ABOUT THE REVALIDATION OF THE ENROLLMENT IN THE REGISTRY

ARTICLE 11 – The enrolled real estate agents will request, with an anticipation of 30 business days previous to the expiration date, the revalidation of his/her enrollment in the registry, having the following requirements:

1. A manifesto, written and signed under oath, that the agent maintains the same information that originates from his/her enrollment in the registry. In case of demanding a modification in the information required, it should be expressed and accredited with the proper documentation that sustains said modification;
2. Should have at least eighty percent of attendance in the courses of capacitation and actualization that are mentioned in the Annual Program;
3. Have credited with a passing grade above eight, in the numeric scale from one to ten, the exams applied by the Directorate, derived from the Annual Program; and
4. Presenting a simple copy of the proof of registration on the Registry.

CHAPTER V
PROOF OF REGISTRATION

ARTICLE 12 – The proof of registration, which for effects of article 12 of the Law, once delivered to the Directorate, will have a validity of two years starting its date of expedition. Said proof of registration must have:

1. Name, charge and signature of the public servant adscript to the Directiorate, which is the one who will emit it;
2. Name and date of expedition
3. Name of the real estate agent, on favor of whom it will be emitted, and, in case of it being a juridical person, the natural person authorized under said concept;
4. Date of expiration of the enrollment on the registry
5. The concept, whether it is a first registration or its revalidation.

ARTICLE 13 – The directorate will operate a Database of the registered real estate agents, for public access via its Internet website, possibly granting a previous payment of the corresponding rights, proofs or information to whoever might request it.

ARTICLE 14 – In case that one registered Real Estate Agent gets sanctioned for infringements to the Law or to this regulation, there’ll be the reasons of it in the proof of registration, giving publicity for the act, making use of the mechanisms that the Directorate shall consider appropriate.

ARTICLE 15 – The Directorate shall integrate a special section in the published database on the website, in which the normal or juridical people who are not registered as Real Estate Agents will be listed, as a measure to prevent the community.

CHAPTER VI
OBLIGATIONS OF REAL ESTATE AGENTS

ARTICLE 16 – The registered real estate agents, notwithstanding the obligations established in the Law, shall have the following obligations:

1. Conduct themselves with honesty and professional ethics, and protect the legal and financial interests of their clients, with respect to the real estate transactions in which they are involved; to which will integrate a record in which, in a written form will inform their client about:
   1. The qualities and defects of the property in matters of property operations
   2. The juridical consequences that appear when realizing the property operations; and
   3. In general, all those circumstances that could affect the act for which they have been entrusted.
2. Maintain and keep updates on a book of records about the contracts of provision of services celebrated with the users;
3. Including the enrollment folio on the registry; in his/her paperwork and advertisings.
4. Identify him/herself on the inspection visits and in all the procedures that should be done to the Directorate, in terms of the Law and this regulation; and
5. The others provided in this regulation.

CHAPTER VI
INSPECTION VISITS

ARTICLE 17 – The Inspection visit will be done by the Directorate, in the address of the registered Real Estate Agent, or its parent or subsidiary, which was expressed in its application, thereby subjecting itself to the formalities established by the Law, and also to the following:

1. The inspection order will be signed and emitted by the Director or another person whom he/she has delegated that faculty.
2. If the inspection order is empowered to more than one inspector to realize the inspection visit, this can be developed by any of the inspectors empowered in said order;
3. The inspection visit should be made during business days and hours, by which is meant during 8:00 to 17:00 hours, from Monday to Friday, according to the disposition of the Law of the Procedures for acts of the public administration of the state of Baja California; and
4. Once the inspection visit gets started during business days and hours, it can be continued until its conclusion or get suspended until the business hour of the next business day, making mention of it in the detailed record until the purpose gets lift.

During the diligence act, the inspected person can formulate the observations that he/she might consider appropriate and contribute the necessary proof, or, deliver them at the end of the five business days following the date of the conclusion of the diligence.

Following the deadline which is referred to in the previous paragraph, during the following five business days to it, and considering the circumstances that could have attended and the proof provided, in its case, the Directorate shall dictate the proceeding resolution, regarding the registration, accordingly based and motivated in terms provided by the Law, having it notified personally by the interested person, in the following five business days starting from the emission of the resolution.

ARTICLE 18 – The record that gets lift by effect shall be detailed and shall contain the requirements indicated on article 10 of the Law.

ARTICLE 19 – Any person can give notice to the Directorate, in case any registered Real Estate Agent committed any violation of the law, or to this resolution, to which it will give origins to an inspection visits, given previous validation; also, it could be given notice to the Directorate, if a third party is taking action as a registered Real Estate Agent, for which the actions follow as stated on article 15 of this resolution.

CHAPTER VII
SANCTIONS

ARTICLE 20 – The non-compliance of the dispositions of the Law and this regulation, on behalf of the registered Real-Estate Agents, will give as a consequence the following sanctions:

1. Temporal suspension of an enrollment in the registry, which can be determined by the Director’s judgment,  during a period from three to twelve months; and
2. Definitive cancellation of the membership in the registry

ARTICLE 21 – The registered real estate agents whom might’ve been convicted due to a felony due to a patrimonial matter, will be sanctioned with the cancellation of their enrollment in the registry, with a previous verification with court records if it’s required.

ARTICLE 22 – In all cases, the non-compliance by part of the registered real estate agents, that merits the imposition of a sanction that was mentioned in this regulation, will be filed in the registry.

TRANSITORY ARTICLE

ONLY ONE. The present regulation will enter into effect during the next business day following the date of publication on the Official State Newspaper.

In conformity with the statements established by article 49, fraction I of the Political Constitution of the Free and Sovereign State of Baja California, print and publish the following regulations for their according observance and compliance.

Approved in the Executive Power Residency in the City of Mexicali, Baja California on the twenty-seventh day of May of 2011.