Re: Don't shoot the messanger!

Posted by D on October 3, 2010, 12:37 pm, in reply to "Re: Don't shoot the messanger!"
187.146.111.201

Hi Mike, I am going to assume that you are asking about titled property being challenged. The Rodenas situation (a corporation claiming ownership of multiple properties, some titled) does not, to my knowledge exist in La Manzanilla. There are properties which could have titles challenged because of pre existing family / associate disputes. It is my understanding that most of these "problem properties" are known by the people in the Ejido office, but I couldn't guarantee that the information would surface during a transaction. Time will tell how the Tenacatita situation will turn out. Before Tenacatita I would explain the process in La Manzanilla with Fideicomiso (bank trust of a titled property) being the goal. Now that has to be amended to say good title / Fideicomiso. Good title starts as the property leaves the Ejido to be titled. For instance, sometime ago I read about http://www.bajainsider.com/baja-business/derecho-de-tanto.htm Derecho de Tanto, I asked the president of the La Manzanilla Ejido about this situation, his answer was that all of the people who needed to sign off had signed off before a property was allowed (by majority of the Ejido) to to to Guadalajara, on the next step to be titled. There are several checks and balances along the way which are supposed to expose any problems with a particular title, culminating with the Notario and the bank trust investigations. I had a mortgage broker write to me regarding the violence in Puerto Vallarta a few months ago, the email was designed to let Realtors know that these kinds of problems were very isolated but still could affect tourist and real estate markets. He concluded the email by saying "I was notified last week by a friend who said he has a direct conduit to President Calderon. If you have any ideas that you would like to present to President Calderon that will help the tourism and real estate markets, please send them to me and I will forward them on." So I emailed him saying "The invalidity of titles and Fideicomiso's is becoming more of a problem. See if you can get this message to President Calderon." He responded saying "The thing all of us need to do is to better educate potential buyers - the only sure title is an escritura. I've heard of people who get a fideicomiso and think they have secure title, but a fideicomiso doesn't guarantee anything. I often tell people that when they get a loan, they have the lender running interference for them to make sure the title is 100% perfect or the lender won't loan on the property. Anytime people are dealing with ejido property, there is always a risk - in some areas of Mexico this is greater than other areas. An escritura and a gravamen (freedom of liens certificate) are the only sure ways to know you have a clean and clear title. It doesn't sound to me like the Canadian in the link you sent had an escritura, and it is understandable how a signature from a high-ranking Mexican official would seem secure. ......The kind of bad publicity in these links hurts all of us, since people's biggest concern of purchasing in Mexico is - do I really own this property and can it be taken away? I'll pass your suggestion on". --------------------- Most if not all of the buyers of titled land in Tenacatita used a Notario to complete the transaction. It reminds me of this saying I from a Notary on the Tomzap web site "The ultimate test of a Notario is whether or not the sellers Title Deed holds up if challenged." Time will tell if Lic Lomeli (one of the Notario's used) did his job correctly or not. Here in La Manzanilla we have a good Ejido, that is the corner stone of building good title. Several properties have gone through the system to title and many others are in the process. How good those titles really are may vary property to property. I know the general foreigner mind set is "I have titled property / fideicomiso, I'm done, safe and secure". I would suggest applying for a loan on the property, if you get it chances are very good that you have a secure title. Some say title insurance is the way to go but from what experience I have with title insurance (limited in number but not research) title insurance policy's can be full of legal loopholes and not worth the paper they are written on. I think anytime you are talking about legal things like this one has to realize that the world is changing constantly. Corporations are basically the biggest threat to the average person and that applies weather you are doing business in Mexico or any other country. Have a look at the situation going on in the US right now. Using that as the basis for comparison were all screwed. There is too much to know to try and go it alone, it is good practice to have someone looking out for your specific interest. Adios for now Daniel

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