Hola Amigos y Clientes:
I’m back with renewed energies, hoping that I will be able to publish more USEFUL articles than in the past which were very busy years for me.
During my last visit in San Diego, California I ran across an article in the San Diego Union tribune News paper. It talked about bad land deals in Baja California Norte and the mistake that people often do by placing faith in the US real estate franchises that operate in Mexico. In the years that we have been in business we have always made it a practice of advising our clients on the necessity of hiring a knowledgeable lawyer or agent before buying real estate property in Mexico.
I personally was involved in the real estate business for a couple of years, but finally decided to quit due to the lack of loyalty and honesty of some sellers and buyers and to the cut throat practices of some real estate agents (and frequently non agents) – Don’t get me wrong; there are some honest real estate people out there doing business in Mexico.
We are now offering our legal representation and assistance to buyers; rarely do we work with the sellers.
If you ask me if it is safe investing in property in Mexico, I would say YES, but you must take some precautions as in every case, such as:
- Title search
- Escrow accounts (if possible)
- Keep in mind that there is really no escrow companies such as there is in the States.
- Preferably, Assistance of a lawyer specialized in real estate transactions.
- Purchasing title insurance (if possible)
- Make sure you understand the terms of the transaction and the Fideicomiso contract before you sign any document. (ASK QUESTIONS!).
And remember, each country has its particularities when it comes to real estate transactions. For instance, Mexico does not require a certification for Realtors as it happens in the US. There is no clear regulation of escrow accounts in Mexico either.
Moral of the story is;
IF you are getting ready to spend a big chunk of money buying property, spend a little bit of money hiring a competent and honest lawyer who can save you a big head ache.
Here is link to Diego Union tribune News paper.
http://www.signonsandiego.com/news/2011/sep/25/baja-land-deals-end-lawsuits/
All your comments and suggestions are welcome; we love to hear from you!
Sincerely,
ALBA WALKER AND THE PAPER CHASE TEAM