• There is an internal legal power struggle between the two companies that own the complex for almost a year already.
• There is what attorney's call, "Legal Uncertainty" as to who actually owns the property and will be legally responsible for transferring title, if that ever happens, to you as new owner.
• There are legal law suits being filed by both parties running from ownership rights to operations of the complex,  that might jeopardize the issuing of legal title to you.
• There is "presumably" embezzlement of deposits funds which you may never be recovered, see since they have been moved out of the country by one of the litigating partners of the complex.
• There is constant denial of the facts and lack of communication by the now "owner" of the project as to the real issues affecting your purchase.
• There is constant change of the "Grand Opening" date of the complex based on the termination of the same, due to poor workmanship and materials being used for the construction of a pseudo "Five Star" project development.
•  There is the loss of revenue from a "promised" rental pool contract of a project that should have been up and running well over a year ago.
• There is the possibility of a "Open Sale" of the complex, since one of the litigating partners had the "great idea" of executing the trust they were holding on the property, which now creates another uncertainty, of "who will end up with the project", to you.
• There is the liability of the future condition of the property, since all you have seen so far is a lot of damaged areas and continued rotting and deterioration of recently put material into the complex.
•  All promises of a "Five Star" development complex are looking more like a "Two Star" based on the present condition of the complex, and it has yet to be opened.     
• You have put all your life savings into the project, paid for it in full, and now you have no certainty as to whether or not you will see a return on your hard earned invested money ever again.

Of course you would.  Wouldn't you?

Unfortunately, as I mentioned before, there is no Government, and/or Public entity that can look after your interest in cases like the one above mentioned, since real estate practitioners and developers are not regulated in Mexico. 

We know of several cases where owners who have already paid for their units in full, or 90% fully paid, to say the least, have yet to receive actual title to their properties.  Yes of course they are enjoying it since they come down and spend a couple of weeks a year at their unit and then go back to their place of origin.  But who can guarantee that the developer will not fall back into an above similar scenario.  How can they be ensured that the next time they arrive into town to enjoy their condo unit, another company will not already own the complex and they will left with no condo unit, and no way of recovering their investment?

The only way you can be guaranteed ownership of your unit is through an actual transfer of deed, and that requires a condo regime already recorded and approved by the municipality.  Anything else is just speculation that would not stand in court.

How do you avoid situations such as the above mentioned (we know of at least another such development in town)?

You do your homework prior to entering into a contract negotiation, or paying off your unit.   You need to find the right people and proper advice.

Whether finding the right attorney, the right realtor (you may contact AMPI, the Mexican National Realtors Association), or find a reliable party who can assist you and advise you as to which direction to take to avoid finding yourself in a similar situation as the above cited case.  Or you could contact us and we will gladly try to inform you to the best of our knowledge.

Something I have yet understand, and based on my former experience in doing real estate and mortgages in the USA, is how people put themselves in this precarious situations. My experience tells me this would not occur in the USA, nor in Canada I would imagine.

So why do purchasers keep putting their investment at risk by not requiring proper documentation prior to paying their property in full in Mexico?

Could it be they are being ill advised?

Regardless of what the reason may be, you should ensure that you are properly advised and have the right team working for you.  It is never too late.

This article has been written by Enrique (Henry) Saldana-Mexico Home Realty Center the First True One Stop Real Estate Company in Mexico.  We offer Real Estate and Mortgage Services among other real estate related services for foreigners purchasing property in Mexico.

For further info. you can reach him a (984) 116-8528 This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; www.buyerbewaremexico.com; and, www.mexicohomerealtycenter.com

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