Baja Real Estate – Just a Reminder about Security of Aquisition

Baja Real Estate Acquisition is a very important and often misunderstood topic. I recently responded to an article about the people in Punta Banda who “lost” their property, 20 years ago, in punta Banda south of ensenada, due to a land dispute, on the property they were leasing that they built homes on. The area continues to be riddle with title issues and unlicensed real estate agents who sell properties with no title. It is an area where I alway recommend extreme caution. The article claims this was due to the Mexican government and unscrupulous developers. while the later is true it could have been avoided with proper representation by a Realtor® Licensed in Baja California.

The article made many incorrect claims regarding leases good for 50 years and no mention on the correct method to hold real title in the “protected zone” (border areas and coastlines). Below is the text from my response to the article:

Non-nationals, with a proper visa (including a tourist visa), can hold title to real property, in the protected zone, through a vehicle that many in the US use as well, a family trust. In Mexico it’s called a fidecomiso and is issued by the foreign investment administration of mexico, through one of the national banks of Mexico (like Bancomer, Banamex, etc…). The process is underwritten, as all legal transactions for real property should be, by one of the locally appointed “notarios”. There are significant costs associated with this process and it can take 6 to 12 weeks to complete the transfer of title (trust rights).

Leases, while they can be “written” for any time period (like 99 years) are only LEGALLY ENFORCEABLE FOR UP TO 10 YEARS from the date of signature. At that point either party can terminate the agreement. Anything built on the land, that is permanently affixed to the land (e.g. with a foundation) is the property of the land owner. I never recommend “buying” property on leased land from the lessee because they can not sell you what they don’t own! If you want to own the property it would be best to go the owner of the land.

Had any of these people used a Real Estate Agent, Licensed by the State of Baja California, they would have been aware that there was no security in their transaction. Furthermore, no bank would have financed any of these transactions nor would have title companies provided title insurance, which is available.

Secure acquisition of real property in Baja California is possible and there is a safe path to to title. But due diligence, proper representation and proper process are essential to eliminating the significant risk of “going it on your own”. Escrow, title insurance and proper representation are available and if it “sounds to good to be true” it likely is.  For more information please contact me for a personal and individualized consultation and request my buyers briefing  .

2 Storey For Sale in Puerta del Mar, playas de rosarito

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Amazing Panoramic Views

•  3900 sqft , 5 bath , 1 half bath , 4 bdrm 2 storey FOR SALE  USD549,500 . Expansive Luxury Home

This amazing property in Puerta Del Mar is a beautiful home towering over one of the most scenic views the pacific coast has to offer. Established on a promontory above the famous K55 cove/beach just north of La Fonda and Bahia Descanso in 2010. Breathtaking views, the highest quality construction and an impeccable attention to detail are what make this Luxury Home a standout on the Baja California Coastline.

The House features four bedrooms. The master has spectacular views, a spacious walk-in closet with custom built-ins (must see), an expansive private balcony and a sprawling master bathroom with Jacuzzi-tub, oversized shower, italian porcelain and more. There are two large fully equipped guest suites and a fully outfitted efficiency (kitchen, bath, private entrance) on the lower floor.

The living room opens up with an impression of grandeur and the rest of the house follows. The foyer leads down to a solid travertine slab stairway with a beautiful cupola dome crowing the area. The downstairs is home to the expansive entertainment area with bar, wine cellar, bodega, guest room, apartment and a massive patio with an outdoor kitchen and room for a hot tub.

The culinary kitchen has a large island with granite counter tops and stainless steel appliances (Bosch, Dacor, etc…) fcook top, dishwasher, convection oven, built-in microwave and French-door refrigerator with ice maker. Oh and the view… that will have you spending more and more of your time honing your culinary skills.

The outdoor living space (both up and down) is truly the most spectacular feature of the home. It epitomizes the luxury lifestyle that Baja provides.

This is a must see to appreciate residence. Set up an appointment today.

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