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tribuna article may 5 2014May 14, 2014, PUERTO VALLARTA:  Today the Amapas Neighborhood Association formally notified AMPI (Puerto Vallarta’s Professional Real Estate Association) and the Applegate real estate agency of violations of the District 9 Plan Parcial in the D’Terrace project, located in the alleyway across from Tropicana Hotel.  The project will be put under judicial review in a lawsuit by PRODEUR, the Attorney General’s office of the state of Jalisco.  Click here to see the English Summary of this letter: ampi english summary

According to the Tribuna article, the Urban Development Office of the Jalisco Attorney General will sue to nullify the construction license for D’Terrace. The article states that after review of documents regarding this project, the PRODEUR feels there is sufficient evidence to present a lawsuit to nullify the project. The case will go before the Jalisco Administrative Court who will make the decision.

AMPI Realtors are obligated to notify clients of potential problems with properties for sale.  The building as advertised is roughly double the allowed density and height allowed in Amapas per the Plan Parcial adopted into law in September 2012. AMPI Code of Ethics Article 10 states:

The guarantee of interests placed in the hands of the real estate professional must provide the customer with absolutely truthful information on the following:

b) The ease or difficulty involved in proceeding with the proposed transaction.

I. Any problems affecting the property.

II. Any restrictions or limitations that could affect the property.

By notifying AMPI of problems with this project, ANA wants all potential buyers to be notified that the project is under Jalisco state judicial review.  According to the ANA letter:

The obvious discrepancy between what is lawfully allowed and what has not only been permitted, but is presently being built has motivated the Amapas Neighborhood Association to request an investigation by PRODEUR (the Jalisco State Attorney General).

According to Jalisco’s Urban Code, if a lawsuit against D’Terrace’s unlawful construction licenses is successful, the licenses could be annulled, and the structure ordered demolished, resulting in substantial losses to any buyers.

As most buyers in these projects are from the US or Canada and are not familiar with Mexican law, they rely on their real estate agent to warn them if any property is under judicial review which could result in the delay of the project or title to the property.  By giving AMPI notice, the ANA hopes that AMPI agents will act on behalf of their clients.

The ANA letter stated:  “We know that your realtors rely on the outstanding character and quality of life in Amapas to attract your clients to purchase in our neighborhood.  The Plan Parcial is intended to help preserve that, and we appreciate the cooperation of AMPI in its enforcement.”.

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ANA is launching a media campaign to alert potential buyers to the need to support responsible development, meaning buying in buildings which are built in conformance with the law.  The Association’s members are planning to pass this information along to the real estate agencies with whom they have done business to ask them to support the ANA’s objectives and get the D’Terrace project brought within the legal limits.