Thread: Don't Buy Property in Mexico

http://www.modbee.com/business/story/11 ... 0955c.html

Beach home loses beach

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By J.N. SBRANTI
BEE STAFF WRITER

Call this a cautionary tale of paradise lost.

A Modesto couple has learned the hard way about the perils of buying property in Mexico.

The $680,000 beachfront home they purchased last spring on the Pacific Coast is no longer next to the beach: The water in front of their home is being filled in, and the new land that's being created will be developed.

"Who would ever think a developer would come along and steal your oceanfront and your view?" asked Dr. Lars Enevoldsen, a Modesto plastic surgeon. "The developer is ignoring all the laws, which we've learned is kind of how they do things in Mexico."

Enevoldsen and his wife, Modesto attorney Sabrina Tourtlotte, are in a legal battle over Mexican coastal property rights. So far, they're losing.

They thought they had thoroughly scrutinized the property before buying their beachfront home.

"We spent lots of time on the Internet researching what can happen," Enevoldsen said. "We made sure of all the things we were supposed to make sure of."

And they were sure they loved the house they found in La Cruz de Huanacaxtle, Nayarit, about 15 minutes north of the Puerto Vallarta airport.

They, like many members of the baby boomer generation, saw Mexico as a place to relax, a spot for their children to play and a beautiful location to retire.

"It was perfect for us,"Enevoldsen said of the 2,000-square-foot home overlooking the water. "We basically refinanced our (Modesto) home and paid cash for it."

At the time of purchase, the Mexican home's back yard adjoined 10 meters of government-owned beach and tide pools, with an unimpeded ocean view.

Instead of hearing waves hit the shore and watching whales frolic, now they listen to pounding pile drivers and see trucks dumping dirt into the water.

The tide pools and whalebreeding area have been destroyed, Enevoldsen said, and are being replaced with a full-service marina and numerous waterfront buildings on landfill.

"Everyone in government knows this is being done illegally, and no one is doing anything to stop it," alleged Enevoldsen, who is part of a homeowners' group taking legal action against the development.

Property value has sunk

The Modesto couple say they knew a marina was proposed for the region but government-approved plans show it being built 100 yards farther down.

"Kind of in the dark of night the developer expanded their plans," Enevoldsen said. "They just decided to make the marina twice as big."

Before dawn one morning last October, Enevoldsen said a convoy of dump trucks started unloading dirt in the ocean next to the 17 homes, most owned by Americans and Canadians.

"They're adding 250 feet of land to our beachfront, on top of which something will be built," said Enevoldsen. An open-air fish market, harbor master's office, gas station and restaurant are among the things planned. "They want to put the armpit of the marina in front of the gringos' homes."

Enevoldsen said his home's beach access is gone, its view is going and its property value has plummeted. He said appeals to government officials, lawsuits and protests haven't helped.

"Realistically, I don't think we'll be able to stop it," Enevoldsen said.

His wife is more optimistic.

"I remain hopeful the Mexican government will uphold their own laws and stop what is going on in the ocean in front of our homes," Tourtlotte said.

She doesn't think her nationality has anything to do with the situation.

"We aren't being picked on here in Mexico because we are Americans. This happens to Mexicans as well," Tourtlotte said. "They live in what I believe to be a very corrupt system where fairness and justice are terms used very loosely."

Need 'qualified informers'

The U.S. State Department, in fact, warns Americans to "exercise extreme caution before entering into any form of commitment to invest in (Mexican) property."

The State Department's Web site warns: "Foreigners who purchase property in Mexico may find that property disputes with Mexican citizens may not be treated evenhandedly by Mexican criminal justice authorities or in the courts."

Title challenges, squatters' rights and real estate laws that differ substantially from those in the United States can cause serious problems for Americans who buy property in Mexico, according to the State Department.

Even Mexican consulate officials advise Americans to be cautious before buying.

"It's very important to have advice of a local lawyer who is an expert in real estate (in the area where you want to buy)," advised Bernardo Mendex, the consul for trade and business at the Mexican Consulate in San Francisco.

Mendex said that besides understanding Mexican laws, potential property buyers must find "qualified informers" who can tell them about local history and government officials who may have unofficial business relationships with developers.

"You have to have sensitivity … to the local situation and politics," said Mendex, acknowledging that "ethical problems" may arise.

Mendex said political connections can change with elections, which is something else American buyers should consider before purchasing.

Ocean views for less than $1M

Officials on both sides of the border agree buying Mexican property is increasingly popular with Americans despite all the cautions.

Enevoldsen and Tourtlotte, for instance, wanted a place they and their three children could relax.

"As a family, when we are in Mexico life just slows down," Tourtlotte explained. "We roll out of bed and into our pool, or we plant ourselves under an umbrella at the beach and watch the children play in the ocean."

They aren't the only Americans who view Mexico as a place to unwind.

"Baby boomers are getting close to retirement age and are looking for an affordable home in the sun," said Gabriel Robles, president of the Resort Real Estate Developers Association of Baja California.

Robles said younger Americans who want "a vacation home where the surf is up" and investors also are buying Mexican property.

"The main reason is the affordability, both in purchasing a home and cost of living," Robles said. "Where else can you buy a (more than) 2,500-square-foot home with an ocean view, less than an hour from San Diego, for under $1 million?"

Squatters have rights in Mexico

Robles said the most popular Mexican spots for Americans to purchase are in Baja California, near Cancun on the east coast, and near Puerto Vallarta on the west coast.

Mexican laws changed in 1994, making it easier for foreigners to own real estate within 31 miles of the coast. The Mexican government created a trust mechanism in which a bank has title to the property, but the foreign buyer gets the benefits of ownership.

Robles contends it's safe for Americans to invest in Mexican property: "The biggest risk is for buyers who 'check their brains at the border.' If you play by the rules of the game, real estate ownership in Mexico is as safe as … in the U.S."

The U.S. State Department doesn't see it that way.

"U.S. citizens are vulnerable to title challenges that may result in years of litigation and possible eviction. Title insurance is virtually unknown and untested in Mexico.

"In addition, Mexican law recognizes squatters' rights, and homeowners can spend thousands of dollars in legal fees and years of frustration in trying to remove squatters who occupy their property," the State Department's Web site warns.

Tourtlotte has warnings of her own.

"My advice for other Americans who are considering purchasing property in Mexico is that they need to understand it's risky," Tourtlotte said. "Research the Mexican laws, retain a bilingual attorney in Mexico to help you through the process and talk to other Americans about their experiences in Mexico."

But she and her husband said they did all that and still ended up in a property dispute.

"If the Mexican government is not going to do what it's supposed to do to stop illegality, then who's going to invest down there?" Enevoldsen asked.

His advice to those considering buying property abroad: "Don't invest in any country that has a record of corruption."

Bee staff writer J.N. Sbranti can be reached at 578-2196 or jsbranti@modbee.com.

This kind of problem actually also happens to Mexicans, I know a Mexican family who had bought a second home on Lake Chapala in the 1920s they had it at a time the area was being developed for hotels 50 years later. They ended up being squeezed out by lawyers for a more recently politically connected developer.

I used to live in Modesto.

Bunch of slack-jawed white trash infest the place but our bretheren from below the border are taking over. In fact, it was where I was living when I decided to flee California.

A Web search will offer ample evidence of the perils of buying Mexican property. Horror stories abound. That American couple obviously did not research properly.

Idiots. They deserve their plight.

They wanted to maximize their money by living where it's cheap, after years of accepting money from Americans.

I'm glad their abode in the cesspool will lose value. Teach them to live in the country/culture that offers them more protection that in that cesspool below the border.

Yeah, we have plenty of problems here in the land of the BIG PX but, compared the the ultra-elitist racist Mexico, we are much better off!!!!! Well, at least until the invaders become the majority then we will be Mexico Two.

"The developer is ignoring all the laws, which we've learned is kind of how they do things in Mexico."

They don't just restrict it to Mexico, Doc.

The tide pools and whalebreeding area have been destroyed, Enevoldsen said, and are being replaced with a full-service marina and numerous waterfront buildings on landfill.

The Modesto couple say they knew a marina was proposed for the region but government-approved plans show it being built 100 yards farther down.

Apparently, destroying the tidepools and whalebreeding area 100 yards away would have been just fine with these folks.

Count floyd - this is the funniest avatar you have had yet. I assume it isnt your driver's license picture - most likely is King george- but please dont change it!

Originally Posted by thelmahopkins

Count floyd - this is the funniest avatar you have had yet. I assume it isnt your driver's license picture - most likely is King george- but please dont change it!

For some reason I don't understand, JuniusJnr thinks I'm wearing a wig.

Don't worry you're secret is safe with me

Originally Posted by CountFloyd

Originally Posted by thelmahopkins

Count floyd - this is the funniest avatar you have had yet. I assume it isnt your driver's license picture - most likely is King george- but please dont change it!

For some reason I don't understand, JuniusJnr thinks I'm wearing a wig.

Count Floyd,

Your hairdresser and makeup artist deserve a big round of applause. Please pass along my compliments.

Oh, and what was the original article in this thread about???

Only going to buy America