Investing in Mexico not a "Punta Banda" story

The evictions demonstrate that in any country, title discrepancies exist, lawsuits get filed, and in some rare cases, buyers lose their property. To be educated and prudent buyers, we must understand the issues.

The American residents at Punta Banda are, on one hand, victims of possible fraud and misrepresentation concerning the developer’s ability to enter into lease agreements for lots within the Baja Beach and Tennis Club. On the other hand, residents ignored the warnings and disclosure that the ownership of the land was in dispute and there was pending litigation to resolve the title matter.

The plaintiffs had given public notice that the developer did not own the property and that no one should build on it. The U.S. lessees trusted in the assurances given by the developer and the Ministry of Agrarian Reform. However, ownership of the land was overturned and the evictions occurred.

In that light, why should Americans not fear buying real estate in Mexico? Title assurances and ownership protections that exist today were not readily available when Americans built in Punta Banda 14 years ago. And remember that the property can probably be insured with a title insurance policy enforceable under U.S. jurisdiction guaranteeing ownership rights.

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.tar.org.