| Rocky Point Exposed |
| Be Careful, Be Very Careful! |
Several independent developers purchased land from the owners of the master planned property known as North
Beach. Their intent was to build luxury condominiums and private homes. Construction and sales began Potential
buyers invested approximately $8 - 10 million dollars in the Playa Azul project. The developer alleges that he
invested approximately $13 million dollars. North Beach land owner Grijavla filed suit against his partners Martin (the
same players in the North Beach development) and named as additional defendants each entity or individual that
had acquired property, including Playa Dorada, Playa Azul and Riviera Real. Construction on Playa Azul was halted.
Beach. Their intent was to build luxury condominiums and private homes. Construction and sales began Potential
buyers invested approximately $8 - 10 million dollars in the Playa Azul project. The developer alleges that he
invested approximately $13 million dollars. North Beach land owner Grijavla filed suit against his partners Martin (the
same players in the North Beach development) and named as additional defendants each entity or individual that
had acquired property, including Playa Dorada, Playa Azul and Riviera Real. Construction on Playa Azul was halted.
DEVELOPMENT INTRODUCED IN 2005
STATUS IN 2009
This letter about Playa Azul was
posted on the internet on a public
forum.
------------------------------------------------------------
June 18, 2007
To Playa Azul Buyers:
As you are all aware we have been dragged
into a legal proceeding regarding our Playa
Azul property. The litigation between the
development partners began early in 2006.
Our attorneys, O’Farril and Associates, were
advising us throughout 2006 that the problem
should be resolved quickly. Our title
insurance company, First American Title
Insurance Company, also led us to believe
throughout 2006 that the problem would be
resolved. As of this date the issue has not
been resolved. This year, (2007) after three
months of attempting to meet with the
development partners we were given a
meeting in early April, (2007). The negotiations
had completely broken down between the
partners. Consequently, resolution is not
expected in the short-term, foreseeable
future. If the litigation continues through the
court system in Mexico it could take several
years before the situation is resolved.
All the legal experts that have been consulted
on the case are confident that our side will
prevail and we will retain ownership of our
land. Once that happens we will proceed and
complete the project as planned. In the
unlikely event that we were to lose the land,
Playa Azul has a $15 million title insurance
policy on the property. Playa Azul will pass
along to you the equivalent of 75% of your
deposit from the proceeds of the title policy.
The policy requires First American Title to
resolve the situation in a “reasonable time”. A
reasonable amount of time is a matter that may
ultimately be determined by the US court
system.
posted on the internet on a public
forum.
------------------------------------------------------------
June 18, 2007
To Playa Azul Buyers:
As you are all aware we have been dragged
into a legal proceeding regarding our Playa
Azul property. The litigation between the
development partners began early in 2006.
Our attorneys, O’Farril and Associates, were
advising us throughout 2006 that the problem
should be resolved quickly. Our title
insurance company, First American Title
Insurance Company, also led us to believe
throughout 2006 that the problem would be
resolved. As of this date the issue has not
been resolved. This year, (2007) after three
months of attempting to meet with the
development partners we were given a
meeting in early April, (2007). The negotiations
had completely broken down between the
partners. Consequently, resolution is not
expected in the short-term, foreseeable
future. If the litigation continues through the
court system in Mexico it could take several
years before the situation is resolved.
All the legal experts that have been consulted
on the case are confident that our side will
prevail and we will retain ownership of our
land. Once that happens we will proceed and
complete the project as planned. In the
unlikely event that we were to lose the land,
Playa Azul has a $15 million title insurance
policy on the property. Playa Azul will pass
along to you the equivalent of 75% of your
deposit from the proceeds of the title policy.
The policy requires First American Title to
resolve the situation in a “reasonable time”. A
reasonable amount of time is a matter that may
ultimately be determined by the US court
system.
This unfortunate situation is affecting both the
buyers and all of us at Playa Azul. We have
tried over the last 12 months to raise enough
funds to complete the C Building, the first six
or seven villas and adequate infrastructure to
service these units. It has been very difficult
to collect money from buyers, current or
potential, financial institutions or the investor
community. All money collected from
customers has been invested in the project.
The situation being as it is makes it impossible
for Playa Azul to refund any money at this time
or to continue building. Also, we are open to
speaking with any legal advisor you, the Playa
Azul buyer, may have.
Playa Azul is currently planning to complete
beach homes as the first phase, as funds are
collected from respective home buyers. If the
economy recovers and customers in the C
Building are willing and able to pay $3 million
of the $9 million owed for their completed
units and we collect another $1.5 million from
new buyers for C Building units we would have
sufficient funds to complete Building C
through the 13th floor. In addition we would
require signed mortgage obligations from
buyers who have money due on their
respective units at the time of completion. This
option would require buyers to put in
additional money without having title
insurance covering the additional amount.
Playa Azul is not anticipating this level of
commitment from our current customers.
However, if you would be interested in putting
additional money in, please contact Shannon
Viola who will be keeping track of cost to
complete and customers’ committed cash.
buyers and all of us at Playa Azul. We have
tried over the last 12 months to raise enough
funds to complete the C Building, the first six
or seven villas and adequate infrastructure to
service these units. It has been very difficult
to collect money from buyers, current or
potential, financial institutions or the investor
community. All money collected from
customers has been invested in the project.
The situation being as it is makes it impossible
for Playa Azul to refund any money at this time
or to continue building. Also, we are open to
speaking with any legal advisor you, the Playa
Azul buyer, may have.
Playa Azul is currently planning to complete
beach homes as the first phase, as funds are
collected from respective home buyers. If the
economy recovers and customers in the C
Building are willing and able to pay $3 million
of the $9 million owed for their completed
units and we collect another $1.5 million from
new buyers for C Building units we would have
sufficient funds to complete Building C
through the 13th floor. In addition we would
require signed mortgage obligations from
buyers who have money due on their
respective units at the time of completion. This
option would require buyers to put in
additional money without having title
insurance covering the additional amount.
Playa Azul is not anticipating this level of
commitment from our current customers.
However, if you would be interested in putting
additional money in, please contact Shannon
Viola who will be keeping track of cost to
complete and customers’ committed cash.
This is an extremely unfortunate situation.
We are all victims. Playa Azul wishes we had a
better resolution. The fact of the matter is –
we do not. You, of course, may contact Hiram
Roche in Mexico at 480-626-1095, Shannon
Viola at 480-497-6004 or Al Young at 480-363-
4939 to discuss the situation. However, we
are at the mercy of the Mexican courts and
will update you when any significant legal
proceedings occur. It would be greatly
appreciated if you would not take your
frustration out on Hiram, Shannon or Al as
they are simply passing along the information
given to them.
Let’s all hope the legal proceedings move
quickly. We will all be excited to see this
project under construction again.
Sincerely,
Steven J. Seymoure
We are all victims. Playa Azul wishes we had a
better resolution. The fact of the matter is –
we do not. You, of course, may contact Hiram
Roche in Mexico at 480-626-1095, Shannon
Viola at 480-497-6004 or Al Young at 480-363-
4939 to discuss the situation. However, we
are at the mercy of the Mexican courts and
will update you when any significant legal
proceedings occur. It would be greatly
appreciated if you would not take your
frustration out on Hiram, Shannon or Al as
they are simply passing along the information
given to them.
Let’s all hope the legal proceedings move
quickly. We will all be excited to see this
project under construction again.
Sincerely,
Steven J. Seymoure
Playa Azul
| "Every time I look at that skeleton of a building, I get heartsick. All that money invested and who knows when we'll ever be able to enjoy our condominium." A Playa Azul investor |
| "Can you imagine? The people who sold this and are associated with this development don't want us to take our frustration out on them. Are they kidding?" A Playa Azul investor |
| Visit www.rockypointexposed.com/blog to post a comment. |
| Participants in Playa Azul Eberardo & Reynaldo Grijalva - Land owners Juan Luis Martin Jr. & Sr.- Land owners German & Estela Palacio - Land owner Steven J. Seymoure - Developer Raul O'Farill - Attorney First American Title Company |
| 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. |
Because of the non resolution of the current 4 year old lawsuit between the Martins and Grijalvas, and the apparent unwillingness on the part of the Sonora government to resolve this issue, it is highly unlikely that investors/buyers will ever see this project completed, nor will they ever recover their money! |
| Since this letter was sent to Playa Azul buyers over two years ago, First American Title has not paid any money to investors/buyers. It is apparent that title insurance does not necessarily guarantee that any real estate investment is safe. |
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April, 2009
In March of this year, I received a letter from the attorney representing Seypet (Playa Azul), outlining what he called positive steps regarding the
lawsuit involving North Beach and the lis pendens on the land.
He explained that the lis pendens had been lifted and in addition, the restrictions on issuance of building permits were removed. The Mexican
attorneys who worked to get this ruling advised that this most recent ruling is not subject to any further appeal and therefore from the judicial
perspective, there should be no impediment to obtaining permits. Good news, right? Maybe not.
The title company, First American who allegedly issued a $15 million title insurance policy to Seypet will not assure Seypet that they will issue
insurance beyond that amount. So Seypet has decided they will not resume construction until they are certain that First American Title will
provide reasonable assurances for the benefit of existing customers and investors.
The letter goes on to say that there is more good news regarding the lawsuit. Service has been accomplished on all but two of the Spanish
entities, and answers will be due before March 20, 2009. More good news, right? One would think that if the Defendants don’t answer, the
Plaintiff wins and the case is over. Not so fast. According to Mr. Stegall’s letter, that would do little to resolve our issues.
If I were bright enough to understand these issues, I probably wouldn’t have bought at Playa Azul in the first place!
Now, to add to the confusion, I heard from a resident in Dorado that the lien was re-instituted on all of North Beach, which includes Playa Azul.
All I know is I’m out a lot of money, First American Title is basically saying, “Don’t look to us,” the Mexican judges appear to give in to the highest
bidder, and I’m pretty sure neither Steve Seymour (Playa Azul developer) nor his attorney are standing in a bread line.
A Very Disgusted Playa Azul Investor
Unsubstantiated rumors indicate that the delays in resolving the lawsuit are coming directly from the office of
Governor Bours. Some claim that the lawsuit between the Grijalvas and Martin is a ploy to delay any further
development on North Beach until Governor Bours leave office in 2009. It is common knowledge that he and his
family have invested millions of dollars in real estate developments in Puerto Penasco. Upon leaving office, he and
his family would then acquire all of prime North Beach property worth an estimated $650 million to continue
multi-million dollar developments, leaving the original North Beach investors holding the bag for millions of dollars of
their investments.
Governor Bours. Some claim that the lawsuit between the Grijalvas and Martin is a ploy to delay any further
development on North Beach until Governor Bours leave office in 2009. It is common knowledge that he and his
family have invested millions of dollars in real estate developments in Puerto Penasco. Upon leaving office, he and
his family would then acquire all of prime North Beach property worth an estimated $650 million to continue
multi-million dollar developments, leaving the original North Beach investors holding the bag for millions of dollars of
their investments.