1. Always
ask for a project disclosure statement. Extreme caution is advised
if the project developer does not have a formal disclosure statement.
A project disclosure statement should include, but not be limited
to:
A.
Project owner/developer information including business structure
and main office location.
B.
Project Covenants, Conditions or Restrictions for the development
and the individual property owner.
C.
Homeowners' association bylaws, rights and budget.
2. Always
inspect a copy of the public deed (escritura publica), recording information
and a current copy of the lien certificate (certificado de libertad
de gravamen).
3. If
land was converted from Ejido or Communal land to private land for
purposes of development, request a copy of the recorded document which
shows the date of conversion.
4. Obtain
copies of all applicable Mexican state/municipal development authorizations.
There is limited government compliance oversight. Caution:
Many projects are in progress without proper land title and/or development
approvals.
4. Always
require that title insurance be issued from a recognized title insurance
company.
5. Never
release money to a developer without a certificate of completion and
occupancy. Purchase terms prior to project completion should allow
for any deposit or purchase funds to be placed in a neutral, third
party escrow or trust account. When developer performs as agreed and
clear title is conveyed, the money is released.
