Baja Real Estate reviews and complaints

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.

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.

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.

I am a US based real estate agent, and I have sold nine condos at Las Olas Mar y Sol to US clients. I feel that anyone should be able to ask and receive answers to real estate questions without fear of receiving threats. I and my family have been threatened by Mr. Crosthwaite, the developer at Las Olas Mar y Sol, I have not received my commissions, and at this point most of my clients are asking for full refunds.

I stated before that I would be the first to say if Mr. Crosthwaite has fulfilled his obligations. So I hereby report that he did refund Mr. Rich Soranno’s $10,000 earnest money deposit. However, it took countless phone calls, attorneys, and press exposure to achieve this. Also, I now have two other clients that are requesting refunds, but neither Mr. Crosthwaite nor his agent Gustavo Torres (Remax-Baja) has responded to those requests. I have not received my commissions because Mr. Crosthwaite has ordered me to write a favorable statement about him, subject to his approval, before he will pay me the money he owes me. I stand firm that I will not write a favorable letter just to collect those commissions.

I submit to the public the following list of questions and issues that created the problems with Mr. Crosthwaite. I invite the public to judge for themselves whether these are questions that others should ask, and whether my life should be put in danger for asking them.

1. Trust Agreement. If the contract states “Promise of a Trust”, then what kind of trust is being promised? Is it a Real Estate Bank Trust or an Administrative Trust? There is a huge difference between the two types of trusts.

2. Exhibits. If the contract refers to Exhibits, they should be attached to the contract and provided to the buyer for full review.

3. Upgrades. There should be a price list of upgrades that can be added.

4. Homeowners Association Fee. What will be the amount of the dues, what is included in the fee, and will the homeowners take control of the Homeowners Association eventually, or will it be controlled by the developer?

5. Actual Closing Date. The contract states that the Trust Agreement will be executed within 24 months after the execution of the contract. What if the building is not complete?

6. Initial Earnest Money Deposit. The contract stated that "said earnest money will simply be held and then returned when 30% down payment has been placed". Does the term "simply held" mean that the check will be cashed or not cashed?

7. Notary. The contract states that the Trust Agreement shall be executed before the Notary Public appointed by the developer. Why can't the Notary used be of the buyers choice?

8. Release of Funds. The contract states that money is to be released by the Title Company to the developer at certain stages of construction. If so, then why aren't the buyers notified when the funds are released? If money is being released, who is checking to see that this part of the construction has actually been started?

9. Unit Re-sales. Las Olas Mar y Sol requires that re-sales go through his company. Why would he sell your unit before he sells his own?

10. How many towers will be going up at this site?

The following additional items are things that are not related to Las Olas Mar y Sol, but that I have learned while trying to buy real estate in Mexico:

1. The Spanish Version of the Contract Applies in Court. Buyers should not necessarily believe that the contract says the same thing in English and Spanish.

2. Select your own Attorney to review your contract. Do NOT hire an attorney that is referred to you by the developer!

3. Construction Bond. Ask whether the development is covered by a construction performance bond.

4. Disclosure of relationship between your agent and the developer. If your real estate agent or that firm has a partnership in the development, they do not disclose this to you! This may be the main reason that they are trying to sell you a particular development!

6. Get it in Writing. For agents, get your commissions due you in writing at time of contract. For buyers, if you make any additional agreements with the developer, get it in writing! DO NOT assume that they will honor any verbal agreement.

I agree with everyone on this comment board and I am so sorry to hear about all the trouble that you are all having. This is the reason I started my company. I have helped several people that have mortgages with ASC, Countrywide, and other mortgage companies that don't seem to care if they harass people or suck them dry. The comments I have heard are along the lines of trying to get blood from a stone or turnip, or something like that.

I have a service that actually will take you out of the loop of contact with ASC, or Countrywide or whomever you have servicing your loan. All you have to do is tell me how we can help you. By that I mean, tell us what you are looking for us to do for you and we will pursue the help that you want, no matter what. We have all aspects of the mortgage business covered from being a mortgage mediation company, a title company, a real estate company, all the way to having access to attorneys for litigation or help to avoid foreclosure. No aspect of help is turned away.

Let me tell you, most of the customers that I deal with have told me about the fear and the frustration of working with mortgage companies that don't seem to care or give them the runaround. To be totally fair, mortgage companies have their ways of dealing with people. Some are good, some are horrible. But one thing all mortgage companies love is being vague. When they are vague, they don't have to give you information until you ASK for it. How does that help you? How can you try to save your home if you don't know how to ask the right questions?

That’s another reason why I created this company. I take your number out of their "system". When they mail you something, it goes to me. I take the burden away from you so you can live your life without the phone calls and the letters. And the rudeness! Oh, man, if I told you some of the stories I have heard...let's just say, it’s not pretty.

I know that some people are going to look at this comment and go, this guy is trying to drum up business. Well, you're right. But here's the kicker. I used to work in mortgage collections. I used to make the phone calls and send the letters. I used to work around the people that make your lives hell. And I kept asking myself, why? Why are these people not being told about the help that’s readily available? Why are these people not being helped to make payment arrangements that are realistic? Why does this company care more about the money than about customer service when that is supposed to be their primary objective?

That's why I got out. I can not stand collections. Just because they are hiding behind a company name they think that they can say anything or act anyway they like with the customers, being friendly with one and the next 40-50 they can treat like crap. Where is the customer service?

I take all that frustration away from you and create solutions that work. I know that it may be hard to swallow, but I do. I have done it for several people. And I can do it for you too. If you want more specifics or just want to talk to me, call my office at [protected] and check out the website, which is being updated with a few new options available. And this isn't just for people facing foreclosure, people that are current and want to pay off their home early, call me. I can and will help as many people as I am able to. What have you got to lose? Website address is http://www.onlybusiness.com/members/RealtyMediationService...and if not for you, best of luck. In all your endeavors.

There is no real ownership for foreigners living along the coast line in Mexico. And these bank trusts? What happens if the banks fail? They are the real owners of the property.

I have lived there full time for a while in the Ejido Primo Tapia in Marbella. Since the property was purchased in the mid 90's we were promised titles we had paid for, but never received. There was to be a height restriction for homes and trailers were supposedly not allowed, that never happened. They opened up a sewage treatment plant a block away from my house after the home was built. The smell at times was atrocious.

It turns out that the so called titles were to be issued at the end of last year, but were in reality a "Certificate of Occupancy".

I lost my home because I was in dispute with my ex (A Mexican born American) who hired an attorney, Jesus Moreno Guzman from Tijuana. He threatened to fabricate criminal charges against me and had successfully cut the power to my home and I was not able to restore. He also libeled my character.

Under these auspices and due to unscrupulous actions by the Ejido Primo Tapia in conveniently losing a record of my co-ownership with my ex, I was forced to leave as I did not relish the thought of spending time in Tijuana jail. It's only a house.

My home had been broken into a total of five times and losses were into the thousands. I am 55 years old and a software designer. I knew or associated with 6 people who were murdered within a half year span a few years ago, including my neighbor who was a policeman and was beheaded.

I love Mexico and many people are honest. However I would never buy there again. Renting is a lot more viable and less expensive. Be careful. We thought we were. And how do you know if your attorney is honest or competent. English documents hold no legal basis in Mexico. I knew a lot of people down there and am or was aware of many property disputes etc. It's not only the Mexicans, the Americans trying to unload or turn a quick buck are even worse. Watch out!

I believe that the best thing is to take some time before being sucked into the hype.

I live in Real Del Mar, and there is an Almalfi house that is falling down, and others with great structural damage. Laura does not know what she is talking about. Our attorney took an engineer/architect there and found many serious problems. I don't know why she does not say just hire the right people to oversee the process. A good attorney is the first step. If he feels you need someone to do a further inspection to guarantee structural integrity then do that. Why does Laura want to be the only one advising her clients? Why is she afraid of good legal advice? I know many Americans get it in the U.S. What is wrong with it in Mexico? Also, the type of inspection she says we have are only walk through. It is not where a building permit process has been followed, and inspectors oversee the stages of construction. These are not required in Mexico, they just are not a service the government provides. Since they don't it is important to get it yourself. I would not trust anyone who is afraid of you getting legal advise from someone who understands Mexican law. An attorney who is only certified to practice law in the U.S. does not have the understanding of the provincial law, or the ability to handle problems. Laura's comments regarding this show her lack of knowledge, and her fear of being found out. The State of Arizona also has information on the Internet about how to go about real estate transactions in Mexico, and they too advise using good legal council first. So, I guess Laura knows more than the U.S. State Department and the Arizona has learned from the citizens who have gone to them for help after having problems. They can't help them after the fact, so they warn them to get legal advice FIRST. Laura won't be there to help you either, but if you don't buy from her she can't laugh all the way to the bank.

My name is Laura. I am a realtor in Mexico and I truly resent this post. Please read on and see how I debate what this person has said about ALL The realtors in Mexcio. I will break this down and answer some of your concerns. You will see {Remark from Laura} That is my opinion of what this person is saying. Forgive me if I get a little strong in some of my remarks. I am usually a very easy going person but this is too much for even me.

Here goes: Statement #1
The complaints I found when searching for Mexico real estate complaints, Baja real estate complaints, and about the developer I was thinking about buying from had very important things for me to think about. I think I was getting caught up in the hype of what the sales people were saying instead of taking the time and being objective about the costs, and the risks.

{Remark from Laura: Don't you think before you buy in the USA? What hype, are you talking about? A chance to own beach front property at a fraction of the cost. The fact that it is safer than ever to buy land in Mexico. Better get a realtor that belongs to Ampi board of realtors in Mexico so you do not invest in developments that are questionable.}

Statement # 2
I don't want to be stuck with a property with chronic problems, in a foreign country with no government protections. I am glad that these warnings were available for me. I am complaining about the lies and scams that are being promoted as fact by the Baja Real Estate community.

{Remark from Laura: You are obviously dealing with the wrong people in Mexico. So as always you have one bad experience and you think the entire country is bad. Good Grief. Are you really that ignorant. Please name all the " Baja Real Estate People that have lied and scammed you. My thought is you too are going by hearsay and talking out of the side of your head.}

Statement 3
It is important to understand these people have a lot to gain by getting us to go there and buy.

{ Remark by Laura: Don't all real estate people have a lot to gain no matter where they sell property? Don't most people work for money? Working for money does not make a person unethical. I resent your remarks. I work for my clients to find them the best possible investment. I invest down here myself. No one is forcing you to come here and buy? Are you that easily persuaded to do something that you do not want to do? Your remarks are offensive and I would suggest you get your facts straight.}

Statement 4
It would be a good deal if there was a government that provided services and agencies for consumer protection.

{Remark by Laura: Mexico does not have a government? News to me. Have you read the law that was passed in 1992 or have you heard of Fonatur? I think not. }

Statement # 5 (my personal favorite!)
If the realtor and seller don't deliver the product they say they are selling there is no board of realtors to help you.

{ Remark by Laura:Yes I believe we do have a Mexican Board of Realtors. Have you ever heard of Ampi? I belong to it. Do your homework before you spread your mis truths}

Statement #6
The realtors are not licensed. There are no inspections of construction done by government building inspectors on houses or condominiums.

{Laura Remarks: You cannot be serious? Where are you getting your information? We have title services, American loans, American escow, home inspections. You need to research before you talk.}

Statement #7
When you see eroded concrete in the area it is because contractors were able to water it down and install it without using qualified workers. Americans are spoiled, we assume there are oversites. There are no oversites on Mexican construction.

{Laura Remarks: You seriously do not think the Mexican people know how to build? I cannot believe what you are saying. They are craftsman. Have you ever seen a copola or bovida? That takes a tremendous amount of skill. Oversite? If I saw construction workers using eroded concrete I would probably not buy there. Just a thought}

Statement 7
The people who are realtors are not going to tell you this unless you know to ask about it.

{Laura Remarks: I really resent this remark. The people who are realtors are not going to tell you? Good Grief. Are you piling all of us realtors into one group. That is intelligent. I happen to steer my clients away from anything that would cause concern. I work for them, not the developers. You need to find another agent. Also you verbage seems to have that all or nothing ring to it. Again you are sooo wrong.

Statement 8
In ten years the new construction of today will be riddled with major problems.

{ Laura Remarks: Oh my goodness, now you are a contractor also? Is home inspection your specialty? I challenge you to come to Mexico and tell me the homes and condos I take you to are not built well. }

In Real Del Mar you see it in houses that are only a year or two old.

Statement #9
{Laura remarks: Funny Real Del Mar has been around for over 15 years and I do not see homes falling down.} Let me ask you this, How many builders do you think build in Real Del Mar? Answer: For your information all homes are custom homes built by individual builders hired by the owners. Are they ALL bad builders? There is your all or nothing mentality coming out again.}

Statement #10
I would say buy a lot and build your own home, but take an American engineer to inspect the lot and do soil compression tests because they are selling lots that don't have the proper compaction to support a house , so the foundations crack and move.

{ Laura Remarks: Again if it smells like a duck and quacks like a duck it is most likely a duck! Get the right builder and you will not have to concern yourself with these issues. Ignorant people say ignorant things. Quack Quack}

Statement 11:(I can barely stand this remark. Ugh!)
Don't trust the sales people, there is NO way to hold them to anything they tell you.

{Laura Remarks: Again, "Do not trust ALL The sales people? I resent that ,again your all or nothing attitude is showing your ignorance to the facts}

Statement 12 (this one is a hummer)
You are walking into a lawsuit in a foreign country if you don't take a lot of time first, and use a Mexican attorney before you buy.

{ Laura Remarks; Now, if you are telling EVERYONE not to trust the country why on earth are you suggesting they get a Mexican Attorney? Maybe they should hire an attorney in The USA? They are ALL ethical, aren't they?}

Statement 13
There are many scams where Americans put deposits on property of $5,000. to hold it and even though they were told they could get it back, they don't.

{ Again give me some names. You are an idiot.(please forgive me) but come on... are you serious? I am sorry I have to call a duck a duck. Just give me the names of the companies that do not give you your deposit back. But of course like you have stated previously, your problem is,YOU cannot find a good honest realtor because they are ALL corrupt? If you could just find one good honest realtor they would tell you that the checks are made out to American title Insurance companies. If you are stupid enough to write a check out to anything but an escrow company you deserve to get conned. You are not doing your homework again.!So are you saying that the American Title insurance companies do not give the AMERICANS their checks back? They are crooked too? You just cannot trust anyone nowadays can you? EVERYONE is corrupt, right?} So now what? You are running out of excuses and arguments}

Statement 14
The whole process is riddled with risk from the beginning to the end. This is true in Rosarito, Tijuana, Loreto, all Baja. I believe it is true in all Mexico. Ask about how the realtors, builders, etc. are regulated, and what your rights are, and who will help you if you have a problem. If you don't ask about this first, you will be in major trouble later.{

{Remarks by Laura: Again you are saying the WHOLE process is riddled with risks. Please tell me there has to be one teeny weeny process that does not have a risk in Mexico. All I want is one. Lets see what I can come up with? I do not think this is risky... Like making a check out to Land America or Stewart Title? Is that risky. Oh how about this one? Getting an American Loan? Very risky indeed. What about doing a title search? Oh not that would be too much work for you wouldn't it?}

{Laura Remarks: You know I would suggest to live in a plastic bubble where you do not have to make decisions. After all where can you be safe in this all or nothing world? But be careful your plastic bubble may burst.}

You obviously have not been able to thoroughly check on other buyer's comments or other developers doing other projects in Mexico. We are building homes in Punta Mita (www.elencanto-puntamita.com) and our clients (100% US citizens) will not agree with you at all. They have been part of a very professional process that ended with full title and timely delivery of a home of the highest quality of construction, furniture and appliances. I'd like you to dare compare our homes and sales process with any other developer's.

Cheap projects are found all over the world (I'm sorry to break the news but even in the US! and even in Phoenix!). So don't be surprised to get what you pay for (in Mexico or the US).

I believe your broken dreams will be the fact that you will never have another opportunity to live by the ocean for a fraction of what it cost in USA. I am always amazed how narrow-minded people are. They hear one bad story and run with it. Yes the issues with Real Del Mar are a know fact. But Real del Mar is not the only place to buy in Mexico. I would not think twice about buying a resale in that development. It is beautiful and close to the border.

When something bad happens in Mexico people such as yourself act like the whole place is in chaos and corrupt and unsafe. Truth be told bad things happen in the USA all the time. You cannot be that naive to think that corruption is not world wide? Of course it is. I cannot think of one school bombing in Mexico. Can you? Any murders, or thieves in our country? Of course they are but if it happens to you say all of the USA is bad. Really, think about it.

There is good and bad in every aspect of life. Yes there are unethical people in the world and in Mexico. But one unethical person does not make everyone unethical. Find a realtor in Mexico that belongs to the Mexican Board of Realtors. Whoever says there is not a board of realtors in Mexico is talking out of the side of their head. Goes to show how people ignorant to the facts can spread so much nonsense. My suggestion is try reading the articles on business trends instead of relying on hear-say.

Keep in mind other realtors in Mexico do not want you coming down to Mexico to work. It is competition. It takes away their business. Believe me I know, because I have been through it.

Between my associate and myself we are working on our 5th property. Yes I know the behind the scenes stuff that goes on in Mexico. I live there. I just know how to buy from reputable builders and reputable real estate people.

Loosen up... take some risks. Do your homework. Check-out why all the American and other foreign investors are going to Mexico in a frenzy to buy up coastal land. Don't you think large corporations do their due diligence?

Why are American Mortgage companies coming down to Mexico to offer AMERICAN LOANS to Americans in Baja? Why is there American escrow services and and American title insurance company's in Mexico? Is everyone else naive or do you think large corporations have the means to do in- depth checking before they invest in another county. My guess is that they have done their homework... You should too.

How much research have you done besides reading the blogs? Remember those are personal opinions not fact. Sorry about the typos but I had to do this fast because I have clients waiting. Wake up smell the roses. I love Mexico and I love the USA. Experience life... For those of you who truly dare to live your lives to the fullest... welcome to Baja.

Unfortunately all the issues discussed are meaningless if you have inadequate water supplies or sewage treatment facilities. Water is currently a major problem in Baja and continues to worsen with the drought. Check out the last issue of Gringo Gazette for more information. Baja's water is being siphoned off by 7 US states, grabbing Colorado river water before it reaches Baja.

I ran out of water one evening in Marbella and I had company. It took almost a day to find a truck to deliver a load.

I had a squatter move into my place, even though it is a gated community. The security believed them when they showed them a false rental agreement. It has been a year and I can't get my place back. The law sides with squatters if they are Mexican citizens and the landlord is foreign. I am going to default on my loan, because my other home mortgage just went up and I can not afford the payments, the legal fees, and the time to go to a Mexican court again. I already have put thousands into a Mexican attorney to try to help me. No more good money after bad, as I saw one person write. If you have a Mexican dream, rent, don't purchase. It is hell if you have a problem. I tried to use PROFECO, but they don't handle disputes like this. I saw that they are the agency that helps foreigners, but only within the first year of having a contract, and a squatter problem is not anything they deal with. What a nightmare.

The Mexican government does little to nothing to assist foreigners who get scammed there. Real estate and timeshare fraud is rampant. It is important to use the words complaint or scam in doing any research on the Internet. An example is put Royal Holiday complaints in google, and you will find literally hundreds of people who have been scammed openly, in broad daylight at resorts. The government, credit card companies, and hotel chains all know it is going on, and NO ONE is stopping it. It does not surprise me that real estate developers are also signing contracts that they have NO intention of living up to. We may pay higher taxes in the United States, but we are a lot safer here. That does not mean it does not happen, but contractor boards, boards of realty, the bbbs, and other agency's are effective. Just look at the difference between Tijuanna and San Diego. Tell me higher taxes aren't worth it. Recent drug tests on cops in Baja show around twelve percent are on some type of drugs. And that is the law enforcers. I agree, Mexico is no place to be.

I looked at the construction at the Mariotte Hotel in Real Del Mar, the other hotel I stayed in at Puerto Nuevo, and I have to say, it is substandard. It is typical of Baja construction. It would never pass inspection in the United States. Some of the plumbing in Mexican developments is a joke too. The pipes, or where you should have pipes in made out of plastics that are very flimsy. Look under the bathroom sinks, that is what you are getting.

So, how does one find a good Mexican attorney?