Mexico is becoming a popular real estate market for vacation and
investment properties. Like with any real estate
purchase, you should first know all the facts before
signing a contract. Columnist, Marla Dickerson of The
Seattle Times, warns prospective Mexico real estate
owners to be aware of what you are buying, in her May
21, 2006 article, “Mexico real estate: By at your own
risk.”
Several years ago, Doug and Dru Davis sold
their home
in San Diego to buy a gorgeous $200,000 home on the
beach in La Cruz De Huanacaxtle, Mexico. The value of
this new home increased by about 500 percent, until
developers “moved the beach.”
Construction began
last fall that will bring a high-rise condominium, hotel
and marina just in front of the Davis’ home, blocking
their view.
“Instead of watching whales glide a
few hundred yards off their patio, the couple fear they
soon will be looking at garbage bins, a service road and
beer trucks.’ This is sending a terrible message to
investors,’ said Doug Davis, 61. ‘You think you're
buying oceanfront property, and then the [Mexican]
government lets someone build in front of
you.’"
Neither the Mexican nor American side of
the country border keeps statistics of deals gone bas
involving Americans and Mexico
real estate. “Some would-be buyers have had brokers
disappear with deposit money. The homes of others have
been seized in land disputes. A few have landed in
jail.”
U.S. officials also warn prospective
Mexico real
estate owners that if a legal dilemma occurs,
Mexico’s “murky” land records make it difficult to win a
dispute in their court.
“There is a history of
problems,’ said Liza Davis (no relation to Doug and Dru
Davis), public-affairs officer at the U.S. Consulate in
Tijuana. ‘We ask people to go in with their eyes
open.’"
When disputing real estate in Mexico, it
is often your word against theirs, even if there is a
contract. Many things in the contract can be vague,
which allows the Mexican government to claim a different
interpretation.
“Doug Davis said he was stunned
by the lack of transparency when he and other mostly American homeowners began asking
questions about the $50 million project, being developed
by four well-known local businessmen. The 17 affected
property owners had to hire attorneys to obtain basic
information about building and environmental
permits.”
The Mexican government still holds
strong that the contracts were explained in detail and
that they have the official documents. “Armando Zepeda
Carrillo, an official with Mexico's Secretary of the
Environment and Natural Resources, said the expanded
project obtained all necessary permissions.”
Dru
Davis said she was taking antidepressants to cope with
the stress of the situation. Their home, recently
appraised at around $1 million, could lose half the
value once the construction is completed.
Mexico
real estate can be a great investment in a great
location. Just be careful when signing the contract.
Have everything explained in writing and bring an
attorney. |
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