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Fulano_de_Tal's avatar

Chuck Levitin

Baja Real Estate Deal Sours for U.S. Investors

Temeculabetty said: "1)Insist your money is escrowed in a reputable third party, escrow account like stewart title or first american title. 2)read the contract. 3) take title when the money is exchanged." Sound advice Betty. However, there are a few small problems. First of all, there is no such thing as an escrow in Mexico. There is no enabling legislation that recognizes an escrow and which keeps your money separate and apart from the escrow holder. Secondly, for a contract to be legal and admissible in court in Mexico, it must be in Spanish. The courts will not enter a contract written in English into evidence. So what good does it do to read the contract, unless you happen to be fluent in Spanish? And let us not forget that the poor saps who bought La Esmeralda have to enforce those contracts in a Mexican court. Even if they get a judgement, the chances are between slim and none of ever getting back one penny from a long-gone developer. You might as well just take your purchase money, place it is a burlap sack and leave it by a taco cart. Third, you got that backwards. It is not "take title when the money is exchanged." It is exchange money AFTER THE PROJECT IS COMPLETED AND YOU HAVE TITLE. Of course this will never really happen, as you seem to be totally ignorant of the requirement for a fideicomiso titleholder for foreigners in Baja or the fact that the developer will not sell you a condo until you put up a substantial downpayment, which they either use to build it or just put in their pockets and walk away. And you have yet to explain how to take title to a condominium unit that does not exist, nor have you considered the process of making sure the developer has paid off the underlying liens on the property you "took title to." After all there is no escrow and Mexican title insurance does not insure the buyer for any liens on the property, disclosed or not. They do not insure that because it is the legal obligation of the Notario to pay for any damages due to his negligence. Of course, no Notario has the money to actually do that and the Notario is not liable for the action nor inaction of the developer.
— January 21, 2011 10:36 a.m.

Baja California Sur – like Leucadia of the ’70s

Steve, there seems to be no "misconception of Mexico being more dangerous than the U.S." unless you think the Mexicans are spreading that misconception. The Mexican NGO, Centro de Investigación para el Desarrollo A.C. did their own study which was released last August. They too, reported that Mexican is more dangerous that the U.S. You can read it yourself: http://www.cidac.org/vnm/pdf/pdf/IncidenciaDelict… And is sure would be nice if the surfer Gabachos would stop infantilizing Mexicans by suggesting they are happy with their lot in life. The Pew Research Center just released a report which shows that 1/3 of Mexicans would migrate to the US for a better life. http://pewglobal.org/reports/display.php?ReportID… Your article makes nice reading, but I'll have to file it in the Fiction section of my library.
— October 11, 2009 6:43 p.m.

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