| As Advertised in 2006 |
| Status as of Feb. 2010 |
La Perla del Mar is the first luxury high-rise condominium project in
Rocky Point’s main shopping and dining district, The Mirador. Previous
developments of this caliber have been located at least 3 miles north
of the city center. Clifton Meridian has partnered with Scottsdale’s OZ
Architects on the $110 million, 254-unit, 15-story condominium project,
which broke ground September 1, 2006. The condo units, which range
from 764 square foot studios to 3,389 square foot Casitas are available
as whole and fractional ownership with Bank Trust ownership and
secure Title for each.
The condo units will range in price from $230,000 ($79,000 / ¼ Share
Fraction) to $750,000 ($127,000 / 1/8th Share Fraction). The project
features four (4) different studio layouts, three (3) one-bedroom floor
plans, two (2) two-bedroom choices, and the market’s finest and closest
beachfront three-bedroom condos in addition to the tower’s Penthouse
and two (2) free-standing three-bedroom Casitas.
| The history of La Perla |
An investor purchased a share of a two bedroom unit about 4 years
ago. They were told that the whole tower would be sold out within 6
months and therefore prices would rise rapidly. The promise, in writing
via contract, was to deliver the unit by 1/31/09 or all paid monies were to
be returned to them, but the verbal time frame was more like the end of
'07 or at the latest, January of '08. The purchaser was told verbally at the
time of purchase, that the project had 100% financing lined up already,
so the speed of sales of units was not important - the project would be
built regardless of how quickly units sold.
The contract required that the
project be finished by the end of
January 2009 and EXPLICITLY
STATED that all monies were to
be refunded if the project was not
completed. That has of course turned out to be complete garbage, since
the project is just a hole in the ground after all this time. This investor is
out over $30,000. It is estimated that around 40 buyers are in a similar
position with about $5 million placed in deposits.
About 7 months ago, the investor sent La Perla management a registered
letter demanding their deposit be returned, since the contract would clearly
be violated and could not possibly be done by the time indicated in the
contract.
That letter was ignored. Four months ago, another letter was sent. Meridian's
response 30 days later, was a letter that essentially stated that "poor
economic conditions" constituted an unforeseen circumstance, and
Mexican Law allowed them to ignore the completion/refund date in the
contract.
ago. They were told that the whole tower would be sold out within 6
months and therefore prices would rise rapidly. The promise, in writing
via contract, was to deliver the unit by 1/31/09 or all paid monies were to
be returned to them, but the verbal time frame was more like the end of
'07 or at the latest, January of '08. The purchaser was told verbally at the
time of purchase, that the project had 100% financing lined up already,
so the speed of sales of units was not important - the project would be
built regardless of how quickly units sold.
The contract required that the
project be finished by the end of
January 2009 and EXPLICITLY
STATED that all monies were to
be refunded if the project was not
completed. That has of course turned out to be complete garbage, since
the project is just a hole in the ground after all this time. This investor is
out over $30,000. It is estimated that around 40 buyers are in a similar
position with about $5 million placed in deposits.
About 7 months ago, the investor sent La Perla management a registered
letter demanding their deposit be returned, since the contract would clearly
be violated and could not possibly be done by the time indicated in the
contract.
That letter was ignored. Four months ago, another letter was sent. Meridian's
response 30 days later, was a letter that essentially stated that "poor
economic conditions" constituted an unforeseen circumstance, and
Mexican Law allowed them to ignore the completion/refund date in the
contract.
| Status as of 2010 |
Be Careful, Be Very Careful!
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. |
| "We were told the project was 100% financed. A total lie!" La Perla investor |
"Mexican law allowed them to ignore completion/refund dates in the contract". |
The development as advertised
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
A bad investment in US real estate is better than a good investment in Mexican real estate. An investor who has lost thousands |
| Rocky Point Exposed |
THE DEVELOPER HAS NO INTENTION OF RETURNING A DIME OF ANY INVESTOR'S HARD-EARNED MONEY. DO NOT DO ANY BUSINESS WITH THESE PEOPLE IN THE U.S. OR MEXICO, OR ANYWHERE ELSE. YOU CAN SEE THEIR COMPANY INFORMATION ON WWW.CLIFTONMERIDIAN.COM. PASS THE WORD, DO NOT DO BUSINESS, PROTEST - DO WHATEVER YOU CAN." A La Perla buyer |
In other words, according to Clifton/Meridian, their interpretation of this Mexican law states that any developer not meeting delivery
obligations because of current economic conditions can screw their buyers - with immunity. On the other hand, according to a noted
Mexican real estate attorney, the law cited above does indeed cover "Acts of God" which include tsunamis, hurricanes, earthquakes,
etc. Force Majeure is not intended to excuse negligence or other malfeasance of a party. It does not protect companies against
economic down turns or because of bad business practices, as is the case with La Perla Del Mar and other developers in Rocky Point.
So who can an American investor complain to? The Mexican government? The Mexican legal system? It bears repeating; foreigners
investing in or living in Mexico have NO property rights or legal standing in a Mexican court ruling on a real estate case.
obligations because of current economic conditions can screw their buyers - with immunity. On the other hand, according to a noted
Mexican real estate attorney, the law cited above does indeed cover "Acts of God" which include tsunamis, hurricanes, earthquakes,
etc. Force Majeure is not intended to excuse negligence or other malfeasance of a party. It does not protect companies against
economic down turns or because of bad business practices, as is the case with La Perla Del Mar and other developers in Rocky Point.
So who can an American investor complain to? The Mexican government? The Mexican legal system? It bears repeating; foreigners
investing in or living in Mexico have NO property rights or legal standing in a Mexican court ruling on a real estate case.
Despite the fact that Clifton Meridian is not meeting their obligation to buyers in La Perla Del Mar, they are currently seeking $5.775 million from investors to finance a 12.66 acre project called Las Fuentes Del Mar. The development would consist of a 48 unit beach front vacation home community in the Las Conchas area of Puerto Penasco. |
The developer claims that, due to economic circumstances
affecting the United States, this has caused a "detriment" to their
company. As a result they cite Article 2193 of the Civil Code of
Sonora which allegedly states that they can invoke "Force
Majeure" thereby protecting them by such legal concept for as
long as the current economic circumstances in the United State
remain.
affecting the United States, this has caused a "detriment" to their
company. As a result they cite Article 2193 of the Civil Code of
Sonora which allegedly states that they can invoke "Force
Majeure" thereby protecting them by such legal concept for as
long as the current economic circumstances in the United State
remain.