The Differences in Negotiations

"When in Rome…" It will be helpful to you when selling or buying property in Mexico; to understand the differences in the way negotiations are handled.

To North Americans, negotiations generally end when the contract is approved and signed by the principals. We think in terms of following the contract to the letter after the agreement is reached. Other countries, to name a few: China, Japan, Mexico, consider the agreement or contract the beginning in a number of steps in the relationship that will change with time and circumstances. In cultures different from the United States, written contracts can be formal symbols of an "intent" to agree. More important issues in these countries are the trustworthiness and character of the other party.

When negotiating agreements or contracts, different cultures may give priority to personal and human factors, rather than the business of business. Price and time frames can be secondary to the more human issues. This style of negotiation appeals more to the emotional level and many times can gain an advantage over the other side. Writer Boyce Lafayette De Mente is of the opinion that foreigners who adjust to letting their emotional side direct them, generally make out better in Mexico, China, and Japan.

Similar to customs followed in the southern United States, the side using more formal courtesy and manners, can be so charming as to disarm the other side in the negotiation. Mente calls this "cultural seduction."

The purpose of the first meetings in the negotiations is to learn and judge the character and personality of the people involved. It is also important to learn if the other party is compatible with the way business is done locally. Taking the time to learn this information will be of great help later.

Similarities exist, also. Good negotiators want to know the names and titles of their opponents. They also want to know about the other side's business or personal backgrounds.

There is a hierarchy of power in the group to be used to one's psychological advantage. The less senior members of the team arrive; do the set up and opening remarks or discussion. The powerful member of the team will make an appearance or speak later. The beginning of the meeting will involve a period of casual conversation and keen observation. To rush this part of the process will be negative to the other side, even considered rude.

One side of the negotiation may wish to talk in concrete terms, making all intentions and feelings perfectly clear. The other negotiators do the opposite, deliberately being ambiguous in order to leave their opposition open to various interpretations, creating more "options." One side may say that they do not understand a point and ask for further clarification, when they really do understand. On the other hand, if the negotiator does not understand, he may not ask for clarification, in order to not lose face. Be aware that you need to look to see if there is understanding of issues as you go through them. Don't always look for conclusive answers. A firm "no." is not likely. "Maybe" or "let's discuss it later', will be more typical. Conversely, "yes" is not a final answer, either.

The challenge you will have is to narrow you differences to understand the other side. Good rules of thumb are to be well -prepared, calm, polite, appreciate silence, and look relaxed. If you are not truly bi-lingual, you will need to rely on someone you trust to help you with the interpretation of the meanings of the words and inferences being used. You should use as your interpreter, someone who understands the nature of the business being discussed as well as someone who is loyal to you. Not understanding the language well opens you up to misinformation and manipulation.

Don't talk down to the other side and don't expect them to appreciate any comparison to how thing are done differently in your country. You are not in your country, you are in theirs.

Don't be afraid to bring up legal issues as soon as the informal, personal, getting-to know-you preliminaries have taken place. Mexican contracts use very formal Spanish, and are different from conversational Spanish. You will find, however; that the registration of documents is very strict. Changes by initialing or scratching out cannot be made. Only original documents are considered valid. Sometimes, a certified copy by a notary is accepted. Many times you have to show the original document and the certified copy in order to get an approval.

Following up after an agreement is reached is important. You need to know that the details in the contract are being followed. When you are encouraging this ongoing follow-up, don't show impatience or anger. Continue to use good manners, greeting the person and asking how they are, before you plunge into the business at hand.

To successfully negotiate an agreement through the entire process is an important test of your ability to live successfully in another culture.

* Source: "Mexican Etiquette and Ethics" by De Mente

Harriet Murray, Broker
For additional information on properties for sale or lease within the bay, please call or e-mail me at: harriet@pvnet.com.mx

Thanks and until next week.