Cautionary Tales in Real Estate
We may get overly excited and carried away when we see the lower cost of living and the beautiful new developments being offered here in the Riviera Maya, but it can be a dangerous move to try and complete your purchase alone.
We may get overly excited and carried away when we see the lower cost of living and the beautiful new developments being offered here in the Riviera Maya, but it can be a dangerous move to try and complete your purchase alone.
Foreigners have been known to buy land or a home with a gentleman’s agreement, with no lawyer involved, thinking they can save money, but in the end, they lost everything.
Some properties being sold are not legal for resale to foreigners, these homes or lots are on ejido land, for example. You cannot obtain the title on this type of property. The land is technically owned by the Mexican Government but for the sole use of local indigenous people.
Foreigners have purchased this land with the promise that it would soon become privatized, and they will get the clear title. This may never happen, or it will take years.
A reputable Mexican real estate lawyer will review the property appraisal, the survey, ensure there are no liens, and the title is free and clear. This professional will ensure the transfer taxes are done and most importantly, that the title is registered in the public record. If the property is not registered, the buyer will run the risk of paying more taxes or even paying extra capital gains tax, when it is finally registered. Worst case scenario, this property will not actually belong to the buyer, and the buyer even will risk losing the property. Unfortunately, this has been the case for hundreds of people in Cancun and Riviera Maya.
During any real estate transaction, it is very important to use a reputable lawyer who will be able to guide you through the process and ensure you that each step is done legally, and your investment is secure.
Buying real estate can be a scary process, especially in a foreign country but, with professional legal assistance in your corner, it will be worry free.
You should choose professionals that offer years of experience to ensure your real estate investment is safe and secure, and guarantee there is a clear title, and the deal is above board before closing.
