Posted by Matiz on October 31, 2000 at 10:59:02:
In Reply to: Found the following.... posted by Curious on October 31, 2000 at 09:53:29:
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Curious and KRICO: The same Friday LA Times article (or a later one on the weekend, I can't recall) explained some very interesting realities about purchasing land in Mexico. First, there is almost no system of title registration in Mexico. We are used to each county having a Registrar's Office where title is recorded and any liens or clouds on title are also recorded. This gives constructive and/or actual notice to subsequent purchasers that title is disputed and may not be "free and clear". You purchase land subject to those claims and a court may have to later decide whether the claims are superior or inferior to yours. But at least there is a system. And the courts have very specific, long-standing rules for how to decide whose claim is superior. We pretty much take local title recording as a given these days, but it is almost unknown in Mexico. Second, there are almost no official subdivision maps, which in the US, are common and locally available. A purchaser in the US can look up the exact property lines for the parcel he/she wants to buy. These are also virtually unknown in Mexico. Finally, there is only sporadic title insurance. And from the article, it appears there is no title insurance as to lands involving the ejidos, precisely because these lands are often already tied up in the legal system and insurers don't want to back the risk. I fully appreciate the frustration of the resident "owners" in Punta Banda: they bought land that had been awarded by a 1973 presidential decree to the ejido, that then acted as lessor/seller to the now-evicted owners. They were very prudent, had legal representation, and had all sorts of official documents showing that the ejido had title and could properly convey it. Now, all of that and 7 pesos will buy you a snack at Tacos Primo. The article pointed out that this problem was not limited to Punta Banda, and that there are presently problems with ejido lands in Mazatlan and Cabo San Lucas. It's an important cautionary tale that reminds us that Mexico's laws are very different in some fundamental ways from the US and that the protections and services that we routinely expect in even the most basic property transactions may not be available there. As always, caveat emptor.
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