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Baja Real Estate / No requirements for agents in Mexico

1 Mexico Review updated:

This is from this site:

Lic. J.E. Beaulne, LL.B. provides us another interesting article about legal terms in Mexican real estate.

I conducted a personal survey on this matter and found that 90% of the salespersons are not qualified when it comes to the legal matters during a real estate transaction in Mexico and, to cover their ignorance they just simply lie instead of saying “Sorry I do not know”.
I have found this to be true of all the websites posted by the real estate agents in order to lure foreign investors to Baja. They do not inform buyers of the need for caution. In fact, they try to make it sound like waiting to make a decision will cost. This is not true, especially now that the market has taken a drastic downturn. My agent did not even suggest I offer less on the property I was negotiating. I went back a few weeks later and offered $250,000. on a house the seller was asking $275,000.00 and they settled for $263,000. and paying $15,000.00 of the closing costs. The agent I had gone to was letting me take the asking price. What kind of help is that. Read more Baja real estate complaints to get a clearer picture of the situation.

This is now a buyers market. But remember it is always buyer beware.

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  • Ke
      11th of Aug, 2007
    0 Votes

    I saw the CBS story and because it was on the news I thought it would be accurate. Now I have a major financial problem because I bought a house in San Antonio Del Mar. By the time I sell, if I can, I will have lost thousands. Right now I am losing money every month on the interest and finance charges. What happened to responsible reporting? If something sounds too good to be true it certainly is. The people who make money on these things are the ones who get in early and out fast. It is like a pyramid scheme.

  • Ke
      28th of Aug, 2007
    0 Votes

    Know first hand what a problem buying in a place like that is. I bought a place in Real Del Mar in 2004 for $170,000.00. It cost $12,000.00 in closing costs, and another $2,000.00 in other fees to establish the trust. I am now trying to sell the place, and have only been offered $220,000.00. I have been to told it is worth $260,000.00 by people in the development and realtors, but I have only had one offer is eight months. I have been paying almost $1,200. a month for three years. That is over $40,000. in interest. When I sell I have to pay 35% capital gains on what the Mexicans consider capital gains, the difference between the $220,000. and $170,000. It is easy to see with the money I also put into furnishing it, this has been a very expensive and not profitable experience. If I had put that money in the same mutual fund I have my 401 K in I would have received dividends, capital gains distributions, and growth on the price of the shares. I thought I was investing, but instead I was getting an education, and I learned a lot from this mistake. I paid a lot for this education.

  • Ke
      3rd of Sep, 2007
    0 Votes

    I do not like to see the hostility that is expressed on the previous comment. I agree, it is very important to follow the guidelines issued by the United States, State Department, regarding contracts signed in Mexico, as well as other foreign countries. I also found the information I got when I looked at the Arizona Dept. of Real Estate document I found a link to in some of the complaints and comments on Mexican Real Estate complaints. It seems like a lot of trouble, and risk. I have decided to invest in a mutual fund with a ten year average return on investment of just over 12%. It pays dividends, and capital gain distributions actually, as well as growth on the share price. My broker recommended some American Funds so we divided the money into three funds. A house is a consuming asset. It needs upkeep, regular maintained, and appliances and roofs need replacing. There are higher commissions and fees going in and out, and the capital gains are higher. I can take some of my income from the funds and rent places in different parts of Mexico, instead of going back to the same place every vacation. In fact, I have booked a vacation in Cozumel for next March, and even though it is not in Mexico, rented a condo for my family in Lake Tahoe the week of Thanksgiving for just under $1,200.00. We will probably go to Puerto Nuevo for New Years again, but staying at a hotel is a lot less expensive than buying a house there. I am much more comfortable with my decision not to risk Mexico, and invest in securities that won't cost me money every month, but pay dividends and income regularly. My friend bought a condo in Hawaii, someone who rented it caused a fire and now she is trying to deal with repairs long distance. She is losing sleep. When she told me her story, it reconfirmed I did the right thing. Thank all of you who posted information regarding real estate investments in parts of Mexico. You gave me important facts, because I was emotionally leaning towards buying there. It was smart to listen with my head, and not my heart. Now my heart even feels better. I am not anxious and worried about if I am doing the right thing.

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