(h) Ask the seller to show you the title insurance policy.
Make sure you read all of the exclusions and feel free
to question any that are not clear to you.
(i) All documents should be in both English and Spanish.
Use an independent translator to make sure you
understand every word in your contract(s).
(j) Put all monies in an escrow account not associated
with the seller. Make sure you understand any
agreement you are asked to sign regarding release of
monies from the escrow account to any other party.
Pay special attention to the date on which your funds
may be transferred.
(k) If the selling entity signing your contract differs from
the entity you believe is selling you the property, ask
for proof that the signing entity has the power of
attorney to represent the seller.
Seek the advice of a licensed,
trained real estate professional
who can answer your questions.
Make sure you read all of the exclusions and feel free
to question any that are not clear to you.
(i) All documents should be in both English and Spanish.
Use an independent translator to make sure you
understand every word in your contract(s).
(j) Put all monies in an escrow account not associated
with the seller. Make sure you understand any
agreement you are asked to sign regarding release of
monies from the escrow account to any other party.
Pay special attention to the date on which your funds
may be transferred.
(k) If the selling entity signing your contract differs from
the entity you believe is selling you the property, ask
for proof that the signing entity has the power of
attorney to represent the seller.
Seek the advice of a licensed,
trained real estate professional
who can answer your questions.
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| Rocky Point Exposed |
Be Careful, Be Very Careful!
| GUIDELINES FOR SAFE INVESTING |
| THE MOST IMPORTANT GUIDELINE: Don't leave your brains at the border! It is your responsibility to do your homework before purchasing Mexican real estate. This partial listing of practical guidelines has been developed based on the experiences of investors who have made successful purchases, as well as those who have lost money investing in Rocky Point real estate. |
Buyers Real Estate
Risk Checklist
Provided by AMPI, Puerto Penasco
Mexican Association of Real Estate Professionals
---------------------------------------------------------------------------------
General Questions
1. Is the property in the restricted zone? What does
it mean?
2. Is the property part of Ejido land? What are the
special risks?
3. When I get a Fideicomiso (Bank Trust),do I own the
property?
4. Is the contract written to protect me? Can I
influence the contract?
5. Can I get a deed or title on the property?
Real Estate Resale Questions
1. How is the property owned? Deed, Title, Bank
Trust, Private contract, LLC, Mexican Corporation?
2. Does the property have clear title?
3. Does the property have liens or lawsuits
preventing title?
4. Is the property held free and clear of debt?
5. Are there city or state bylaws that limit ownership
or usage?
6. Is there a condo regime? What are the restrictions?
7. Is there HOA (Home Owners Association) rules?
How do they impact your usage.
New Development Questions
1. Is the project an idea on a brochure?
2. Are building and sales permits in place?
3. What stage of development is the project in?
4. Does the project clearly describe what you are
getting?
5. Is your deposit protected in an escrow account?
Is the letter of instruction favorable to you?
6. Is the purchase reservation, promise of trust
agreement, and other legal documents written to
protect you?
7. Are there warranties and consequences if the
performance expectations are not met?
8. How is the project financed? What percentage of
the financing comes from the developer, investors,
financial institutions or buyers?
9. If your funds are used for promotion or
construction, are they protected if commitments are
not met?
10. If the project fails to be adequately funded, are
the investors left with anything real?
11. Does the developer hold performance bonds that
are valid and payable to the investor/buyer against
contract warranties?
12. Does the developer have a good history of
building similar projects.
13. What does the developer have to lose if the
project fails?
Additional tips to buying
real estate in Mexico
(a) Don't be swayed by fancy full color brochures or
claims made in advertisements in local newspapers.
(b) Make sure you understand Mexican real estate laws.
They are vastly different from U.S. laws!
(c) Understand the system by which non-Mexico citizens
may acquire land in Mexico. Make sure you fully
understand the way the bank trust system works.
(d) Do not be swayed by ads indicating the development
is "close to sold out". While this may be true in some
instances, ask your attorney or accountant to check
out that claim.
(e) Beware of pre-construction offers requiring payment
in full.
(f) Make sure you have representation and don’t
attempt to handle any transaction on your own.
Hire licensed Mexican and U.S. real-estate agents
and attorneys. Choose an attorney and Notario
not affiliated with, nor recommended by the seller.
(g) Make sure the seller can prove ownership of
the property and shows you clear title to the
property. Be wary of sellers who have not
paid for the property in full. (See FAQ)
They may have paid a small portion for the
land and are relying on future sales
to fund the balance that is owed on that land.
Risk Checklist
Provided by AMPI, Puerto Penasco
Mexican Association of Real Estate Professionals
---------------------------------------------------------------------------------
General Questions
1. Is the property in the restricted zone? What does
it mean?
2. Is the property part of Ejido land? What are the
special risks?
3. When I get a Fideicomiso (Bank Trust),do I own the
property?
4. Is the contract written to protect me? Can I
influence the contract?
5. Can I get a deed or title on the property?
Real Estate Resale Questions
1. How is the property owned? Deed, Title, Bank
Trust, Private contract, LLC, Mexican Corporation?
2. Does the property have clear title?
3. Does the property have liens or lawsuits
preventing title?
4. Is the property held free and clear of debt?
5. Are there city or state bylaws that limit ownership
or usage?
6. Is there a condo regime? What are the restrictions?
7. Is there HOA (Home Owners Association) rules?
How do they impact your usage.
New Development Questions
1. Is the project an idea on a brochure?
2. Are building and sales permits in place?
3. What stage of development is the project in?
4. Does the project clearly describe what you are
getting?
5. Is your deposit protected in an escrow account?
Is the letter of instruction favorable to you?
6. Is the purchase reservation, promise of trust
agreement, and other legal documents written to
protect you?
7. Are there warranties and consequences if the
performance expectations are not met?
8. How is the project financed? What percentage of
the financing comes from the developer, investors,
financial institutions or buyers?
9. If your funds are used for promotion or
construction, are they protected if commitments are
not met?
10. If the project fails to be adequately funded, are
the investors left with anything real?
11. Does the developer hold performance bonds that
are valid and payable to the investor/buyer against
contract warranties?
12. Does the developer have a good history of
building similar projects.
13. What does the developer have to lose if the
project fails?
Additional tips to buying
real estate in Mexico
(a) Don't be swayed by fancy full color brochures or
claims made in advertisements in local newspapers.
(b) Make sure you understand Mexican real estate laws.
They are vastly different from U.S. laws!
(c) Understand the system by which non-Mexico citizens
may acquire land in Mexico. Make sure you fully
understand the way the bank trust system works.
(d) Do not be swayed by ads indicating the development
is "close to sold out". While this may be true in some
instances, ask your attorney or accountant to check
out that claim.
(e) Beware of pre-construction offers requiring payment
in full.
(f) Make sure you have representation and don’t
attempt to handle any transaction on your own.
Hire licensed Mexican and U.S. real-estate agents
and attorneys. Choose an attorney and Notario
not affiliated with, nor recommended by the seller.
(g) Make sure the seller can prove ownership of
the property and shows you clear title to the
property. Be wary of sellers who have not
paid for the property in full. (See FAQ)
They may have paid a small portion for the
land and are relying on future sales
to fund the balance that is owed on that land.
Useful Links ------------------------------------------------------------ The media has recently become aware of the real estate problems in Rocky Point. Read, hear and see about it here: Media Arizona Daily Star - March 9, 2008 ABC-15 News - March 5, 2008 10:00 PM ABC-15 News - Feb. 14, 2008 6:00 PM ABC-15 News - Feb. 13, 2008 10:00 PM The Arizona Republic - Nov. 25, 2007 Tucson Citizen - Nov. 27, 2007 Arizona Daily Star - Jan. 29, 2008 KTVK- Channel 3, Phoenix - May 2, 2006 There is lots of good information on the Internet about purchasing property in Mexico. The links below will be invaluable to you in insuring a successful real estate transaction Buying Mexican Property Mexican Association of Real Estate Professionals Stewart Title Company First American Title Company Buying Property in Mexico Mexican Real Estate - Buying Property Leap of Faith - Buying property in Mexico Should there be a time when Arizona residents may need to register complaints about Mexican real estate transactions, the links below will be of help. Government Agencies Arizona Office of the Governor Arizona Attorney General Arizona Real Estate Commission Out of state residents should contact local real estate authorities and members of Congress: US Congress The Mexican government has finally taken note of the situation in Rocky Point. Read about it here. This website depends upon its readers to provide additional information relative to real estate problems in Rocky Point. Please participate in our BLOG with any information you wish to share. |
"If only I had known then what I know now about Mexican real estate, me and my family would have been a heck of a lot better off financially today." A Rocky Point Investor |
| Visit www.rockypointexposed.com/blog to post a comment |
| The information herein has been obtained from various sources and is not guaranteed by rockypointexposed.com. Prospective investors are advised to conduct their own investigation of the information contained herein before proceeding with any real estate investment in Rocky Point (Puerto Penasco). The information contained on this site is not legal advice. While the highest standards were used in compiling this information it should not be considered legal advice and all legal questions should be handled by appropriate representation. Copyright rockypointexposed.com. All rights reserved. Web Hosting by Yahoo! |
Visit www.rockypointexposed.com/blog to post a comment. |
| A bad investment in US real estate is better than a good investment in Mexican real estate. An investor who has lost thousands |