Puerto Penasco, Sonora, Mx. Condo Owner Fights Eviction in Lien Battle

[AlanMexicali]

http://www.phoenixnewtimes.com/news/rocky-point-condo-owner-fights-eviction-in-lien-battle-7336617

"A former Scottsdale woman is making a last-ditch effort to avoid losing her Rocky Point condo over a fight between a developer and construction workers.

Donna Peckenpaugh faces imminent eviction from her condo at Bella Sirena on Sandy Beach, as well as the total loss of the $350,000 she paid for it. Several other condo owners are dealing with the same problem, she says."

"This is a country that has no respect for anyone," she fumes.

The former interior designer and widow has lived for the past 10 years in Puerto Penasco, a.k.a. Rocky Point, a sleepy villa on the shores of the Gulf of California."

[hensley]

That is why we would never buy property in Mexico.

[Mainecoons]

Pelican Partners, a Seattle Company

Mexican division of Beck Group, also a U.S. company.

Even worse, the owner failed to follow through immediately on setting up the required Mexican Trust which would have exposed the problem immediately.

There have been all sorts of condo frauds and failures in Puerto Penasco. And American companies have been up to their necks in them.

The condo laws are a joke in Mexico and the whole business of buying using a Bank Trust is fraught with perils IMO. I wouldn't touch either. Stick to fee simple handled by a reputable notario.

There's more than a few fraccs I wouldn't go near here as well.

[AlanMexicali]

Pelican Partners, a Seattle Company

Mexican division of Beck Group, also a U.S. company.

Even worse, the owner failed to follow through immediately on setting up the required Mexican Trust which would have exposed the problem immediately.

There have been all sorts of condo frauds and failures in Puerto Penasco. And American companies have been up to their necks in them.

The condo laws are a joke in Mexico and the whole business of buying using a Bank Trust is fraught with perils IMO. I wouldn't touch either. Stick to fee simple handled by a reputable notario.

There's more than a few fraccs I wouldn't go near here as well.

True, if the poor women would had done even the littlest bit of research on beachfront property ownership by foreigners she would have know to be the legal owner she had to have the "escitura" held through a fideicomiso from a Mexican bank in the restricted zone.

I have to wonder if she didn´t hear this at least once or twice when hanging around with other foreigners in the 10 years she lived there.

[Intercasa]

And people wonder why with realtors / developers and notarios they need independent counsel for due diligence. She was naive and the notario should have pulled a no liens certificate and she should have hired independent counsel prior to signing a contract and checking for liens.

[Jim Bowie]

And the sad part is she was not(nor will not be) the last naïve person coming to Mexico.

[Mainecoons]

They also have mechanics liens NOB and you can lose your property to them there as well. It is one of the reasons you buy title insurance there.

[CHILLIN]

The fact of the matter is that all the desirable properties, for vacationers and snow birds, remain in either ejido or fideicomiso. There are some very large chunks in the hands of private corporations but to commercialize them would require 100's of millions of pesos. If someone sees "danger" in the fideicomiso system I would like to hear about it. More likely a misunderstanding of how they work. A good property lawyer, backed up with a second opinion from a Notary, will tell you many people prefer fideicomiso, even where it is not compulsory, because it streamlines estate and tax planning.

Luxury and waterfront apartment rental prices are up by 30 - 35% this year in Puerto Vallarta, many are solidly booked into 2016. I don't know if this has caused a property value increase. Many are now collecting, and issuing facturas on the I.V.A. tax and Hospitality tax - together they make up 19%.

[AlanMexicali]

http://www.phoenixnewtimes.com/news/rocky-point-condo-owner-didnt-follow-mexican-rules-fellow-owner-says-7343516

This is a follow up of the story where our speculations here are correct.

[slainte39]

Some one posted that this situation is why they would never buy property in Mexico.

Anyone who is not willing to exercise even the minimum of due diligence and educate themselves about ownership should not own property in Mexico, or anywhere else for that matter.

[Jim Bowie]

Some people just have a "hat full of money".

[michigander]

Who drops $350K on property and does not get the proper releases. Did she even have a notario? It really sounds like she has no beef with Mexico, her problem is with the U.S. Developer that hosed everyone.

[RVGRINGO]

Her real beef is with herself, for not following proper procedure; probably not even asking questions.