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Regarding Sunday's AZ Republic, Puerto Peñasco, article:
1. The Mexican bank trust system started in 1972, 35 years ago, and has operated beautifully ever since. On December 27, 1993 with NAFTA taking effect January 1, 1994, the law was modified to extend trusts to 50 years from 30. All trusts whether 30 or 50 year trusts, are renewable. The trust is irrevocable with transfer of dominion making the investment safe and saleable or willable.
2. No foreigner with a properly constituted bank trust has ever lost their property EXCEPT for those very few cases where the property was used in the commission of a Federal crime. U.S. title insurance is available but not necessary unless a lender requires it.
3. Most of the nightmare scenarios in the article could have been avoided by simply doing a title search. Any reputable real estate broker knows how to do this. If a broker won't do it for their client (at the client's expense, P.$180.00 in Guaymas), find someone that will, possibly a lawyer, or simply walk away.
Investing in Mexican real estate is perfectly safe when done properly. Whether it is profitable or not depends on location, market conditions, financing and a little luck.
Email: sun@prodigy.net.mx
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Could San Carlos become like Rocky Point? -- Tom T. House -- 11/26/07 5:51p.m.
For balance, here's a contrasting view -- Tom T. House -- 11/27/07 10:58a.m.