Comments on: Real Estate Scams in Latin America to Avoid http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/ Live where you want to live... Live how you want to live... And make money doing it! Mon, 06 Feb 2012 11:29:54 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Deepak Malhotra http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-3/#comment-1713 Deepak Malhotra Wed, 14 Apr 2010 17:27:03 +0000 http://www.escapefromamerica.com/?p=712#comment-1713 There are a lot more risks than those mentioned in the article. A lot of the real estate agents are not licensed and do not have insured escrow accounts. So if they flee with your earnest money, there is no insurance and you will probably not recover anything. This has happened before. A lot of the closing agents do not have insured escrow accounts. So if they flee with your money, they is no insurance and you will probably not recover anything. In Mexico, there are Ejidos, communal farming land, that can be privatized. If it is not privatized properly or if some farmers change their mind after the property has appreciated, it can take years to get a decision from the court system and it may not be favorable. That is what happened near Ensenada. Then there is the issue of underreported transfer prices or transfer of shares of corporations. If buyers aren't careful, they can get stuck with the seller's capital gains taxes. They may not realize they have a problem until they try to sell. Also, if you buy in Mexico through trust, there are additional tax forms (3520, 3520A) that you have to file with the IRS that are not in tax software preparation forms and that most accountants are not familiar with-a minor issue but a $10,000 fine if you don't do it. Prosecutors in Latin America are not interested in problems of Gringos so don't expect the police to help you if you get ripped off. If you want an investigation, you usually have to pay for it. There are a lot more risks than those mentioned in the article. A lot of the real estate agents are not licensed and do not have insured escrow accounts. So if they flee with your earnest money, there is no insurance and you will probably not recover anything. This has happened before. A lot of the closing agents do not have insured escrow accounts. So if they flee with your money, they is no insurance and you will probably not recover anything. In Mexico, there are Ejidos, communal farming land, that can be privatized. If it is not privatized properly or if some farmers change their mind after the property has appreciated, it can take years to get a decision from the court system and it may not be favorable. That is what happened near Ensenada. Then there is the issue of underreported transfer prices or transfer of shares of corporations. If buyers aren’t careful, they can get stuck with the seller’s capital gains taxes. They may not realize they have a problem until they try to sell. Also, if you buy in Mexico through trust, there are additional tax forms (3520, 3520A) that you have to file with the IRS that are not in tax software preparation forms and that most accountants are not familiar with-a minor issue but a $10,000 fine if you don’t do it. Prosecutors in Latin America are not interested in problems of Gringos so don’t expect the police to help you if you get ripped off. If you want an investigation, you usually have to pay for it.

]]> By: sara http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-3/#comment-1591 sara Mon, 29 Mar 2010 20:56:21 +0000 http://www.escapefromamerica.com/?p=712#comment-1591 I live in Ecuador and it is a wonderful country. Its people are so nice and kind, they will give you the most warming welcome. I have put together a helpful fact sheet, and also an article on Ecuadorian manners and customs I live in Ecuador and it is a wonderful country. Its people are so nice and kind, they will give you the most warming welcome. I have put together a helpful fact sheet, and also an article on Ecuadorian manners and customs

]]> By: John http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-3/#comment-355 John Sun, 02 Aug 2009 00:30:09 +0000 http://www.escapefromamerica.com/?p=712#comment-355 My wife and I visited Bocas del Toro with an intent of purchasing some property for investment and retirement. We didn't like it much. The people were very friendly but it was way too remote. We weren't looking for a Supermarket WallMart but a least a modest grocery Store....none were found. No entertainment. Not a large selection of restaurants. We also looked at lots on the Isla Solarte. It is a nice little Island just a short boat from town.....glad now we didn't buy any property after reading the above article. There was a Britt named Ron who we liked very much. He had developed about 6 lots on another small Island. Ron lived in town but was going to build a house on one of his lots and sell the other 5. I am not sure if he ever did build his dream house. We looked at other places in Panama and Costa Rica.....decided and bought a place in Argentina. My wife and I visited Bocas del Toro with an intent of purchasing some property for investment and retirement. We didn’t like it much. The people were very friendly but it was way too remote. We weren’t looking for a Supermarket WallMart but a least a modest grocery Store….none were found. No entertainment. Not a large selection of restaurants. We also looked at lots on the Isla Solarte. It is a nice little Island just a short boat from town…..glad now we didn’t buy any property after reading the above article. There was a Britt named Ron who we liked very much. He had developed about 6 lots on another small Island. Ron lived in town but was going to build a house on one of his lots and sell the other 5. I am not sure if he ever did build his dream house. We looked at other places in Panama and Costa Rica…..decided and bought a place in Argentina.

]]> By: Chas http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-3/#comment-313 Chas Fri, 26 Jun 2009 18:55:38 +0000 http://www.escapefromamerica.com/?p=712#comment-313 The biggest scam of all is finding a "good lawyer". What an oxymoron and something that many of us from countries with good legal systems have come to trust, yet we get ripped off in the Latin American countries because we "trust" the so-called lawyers, notarios, and the rest of the scam artists involved in the real estate game. We have been ripped in Mexico and the latest is Costa Rica...by a Tico lawyer, Tico realtor, and American seller. The biggest scam of all is finding a “good lawyer”. What an oxymoron and something that many of us from countries with good legal systems have come to trust, yet we get ripped off in the Latin American countries because we “trust” the so-called lawyers, notarios, and the rest of the scam artists involved in the real estate game. We have been ripped in Mexico and the latest is Costa Rica…by a Tico lawyer, Tico realtor, and American seller.

]]> By: Bernard Collier http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-295 Bernard Collier Fri, 19 Jun 2009 15:50:07 +0000 http://www.escapefromamerica.com/?p=712#comment-295 Paradise Stolen 2 This is the second TV film by Adelita Coriat and combines the original shown last September (06) (over 1000 viewings) it divulges more facts about the scams on Isla Solarte in the Bocas del Toro archipelago selling RoP (Derechos Possesorios) of state owned land in Panama. Shepard Johnson is on the run and has not returned to Panama or Isla Solarte for years his sales have collapsed he remains in his house in Granite Bay California, complaining he is the innocent party and refuses to return to Panama City and face the charges against him, blaming everybody for his demise and declaring Chapter 11 last July (07) in California and suing anyone who does not agree with him. Guillermo Martucci and his partners even though under house arrest go about their daily business as normal, the same applies to the other defendants in the case, they have very deep pockets having swindled people out of millions of Dollars. The Government and the corrupt Judiciary refuses to do anything about the corruption at all levels, instead of tackling the problems are now part of it which recent events and legislation protecting crooks in Panama has proven. This has outraged investors who are demanding action and indicating that if this problem is not tackled soon the whole Panama land bubble may burst. In August the Government were forced to amend law 62 regarding RoP that had caused so much controversy and was open to misinterpretation by crooks and scam artists, and even the introduction of law 2 with concessions in 2006 has done little to alleviate the problem. Non-Spanish speakers are advised to have someone with knowledge of the Spanish language to assist in understanding some of the complications of this problem. I would like to extend my grateful thanks to Adelita Corient for her persistence and excellent reporting. Enjoy the film, please spread the word and pass the URL on to any other persons or organisation you think will benefit from it's contents, you are reminded that this documentary covers the 200 investors on Solarte and now includes the native community on the Island who are also under threat. They all hope one day to call Isla Solarte home, regretfully after ten years there are a few (now deceased) who will never be able to do that. Thanks for watching Bernard Collier P.S. The murder last week of Kim Crofts on the island has now created more fear and uncertainty. Paradise Stolen 2-a http://video.google.com/videoplay?docid=-876547171908907409&q=solarte+paradise+stolen&pr=goog-sl Paradise Stolen 2-b http://video.google.com/videoplay?docid=-7247709494971970796&q=solarte+paradise+stolen&pr=goog-sl Paradise Stolen 2

This is the second TV film by Adelita Coriat and combines the original shown last September (06) (over 1000 viewings) it divulges more facts about the scams on Isla Solarte in the Bocas del Toro archipelago selling RoP (Derechos Possesorios) of state owned land in Panama.
Shepard Johnson is on the run and has not returned to Panama or Isla Solarte for years his sales have collapsed he remains in his house in Granite Bay California, complaining he is the innocent party and refuses to return to Panama City and face the charges against him, blaming everybody for his demise and declaring Chapter 11 last July (07) in California and suing anyone who does not agree with him.
Guillermo Martucci and his partners even though under house arrest go about their daily business as normal, the same applies to the other defendants in the case, they have very deep pockets having swindled people out of millions of Dollars.
The Government and the corrupt Judiciary refuses to do anything about the corruption at all levels, instead of tackling the problems are now part of it which recent events and legislation protecting crooks in Panama has proven. This has outraged investors who are demanding action and indicating that if this problem is not tackled soon the whole Panama land bubble may burst. In August the Government were forced to amend law 62 regarding RoP that had caused so much controversy and was open to misinterpretation by crooks and scam artists, and even the introduction of law 2 with concessions in 2006 has done little to alleviate the problem.
Non-Spanish speakers are advised to have someone with knowledge of the Spanish language to assist in understanding some of the complications of this problem. I would like to extend my grateful thanks to Adelita Corient for her persistence and excellent reporting.
Enjoy the film, please spread the word and pass the URL on to any other persons or organisation you think will benefit from it’s contents, you are reminded that this documentary covers the 200 investors on Solarte and now includes the native community on the Island who are also under threat. They all hope one day to call Isla Solarte home, regretfully after ten years there are a few (now deceased) who will never be able to do that.
Thanks for watching
Bernard Collier

P.S. The murder last week of Kim Crofts on the island has now created more fear and uncertainty.

Paradise Stolen 2-a
http://video.google.com/videoplay?docid=-876547171908907409&q=solarte+paradise+stolen&pr=goog-sl

Paradise Stolen 2-b
http://video.google.com/videoplay?docid=-7247709494971970796&q=solarte+paradise+stolen&pr=goog-sl

]]> By: porn rape videos http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-286 porn rape videos Sun, 14 Jun 2009 15:12:19 +0000 http://www.escapefromamerica.com/?p=712#comment-286 now I'll be in touch.. now I’ll be in touch..

]]> By: Miguel http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-282 Miguel Tue, 09 Jun 2009 14:41:12 +0000 http://www.escapefromamerica.com/?p=712#comment-282 I tend to agree with you, though there may be some notable exceptions like Costa Rica. And even if you avoid the scams, what is to prevent a future government from taking power in Nicaragua or Ecuador that will seize all property from foreigners? Rental rates are low enough that, IMO, it doesn't make sense to buy unless you are married to a native. I tend to agree with you, though there may be some notable exceptions like Costa Rica. And even if you avoid the scams, what is to prevent a future government from taking power in Nicaragua or Ecuador that will seize all property from foreigners?

Rental rates are low enough that, IMO, it doesn’t make sense to buy unless you are married to a native.

]]> By: » Your chance to remix a song for a future EP release. pullman washington http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-280 » Your chance to remix a song for a future EP release. pullman washington Sun, 07 Jun 2009 00:08:23 +0000 http://www.escapefromamerica.com/?p=712#comment-280 [...] Real Estate Scams in Latin America to Avoid | EFAM | Escape From … [...] [...] Real Estate Scams in Latin America to Avoid | EFAM | Escape From … [...]

]]> By: tom sigur http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-269 tom sigur Thu, 28 May 2009 14:17:13 +0000 http://www.escapefromamerica.com/?p=712#comment-269 hey david, thanks for the heads up, its a logical thought....but needs to brought into public dialouge. hey david,
thanks for the heads up, its a logical thought….but needs to brought into public dialouge.

]]> By: david http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-266 david Wed, 27 May 2009 08:39:23 +0000 http://www.escapefromamerica.com/?p=712#comment-266 I think the BIG scam story today involves off-plan sales, in places such as Panama & Costa Rica, for projects that may be significantly delayed or never built at all! The RE crash and shady developers are doing a double whammy on starry eyed buyers. Is it any wonder that this story gets no press in the many industry supported websites that continue to promote RE investing in developing nations while ignoring the reality that the global crunch has seriously hammered home values...particularly in Latin & Central America where US buyers account for a large percentage of purchases. Who is safe guarding the deposits, etc. I think the BIG scam story today involves off-plan sales, in places such as Panama & Costa Rica, for projects that may be significantly delayed or never built at all! The RE crash and shady developers are doing a double whammy on starry eyed buyers. Is it any wonder that this story gets no press in the many industry supported websites that continue to promote RE investing in developing nations while ignoring the reality that the global crunch has seriously hammered home values…particularly in Latin & Central America where US buyers account for a large percentage of purchases. Who is safe guarding the deposits, etc.

]]> By: WorldCitizen http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-2/#comment-262 WorldCitizen Mon, 25 May 2009 22:40:44 +0000 http://www.escapefromamerica.com/?p=712#comment-262 In other words....NEVER NEVER NEVER buy real property in Latin America. Period. I have traveled throughout Latin America and not only will I never buy any property, I will not rent anything which requires my signature or a deposit. Not worth the inevitable headaches, my friends. Mr. Buonamici's cure all seems to be "find a good lawyer." Ever tried doing that in Latin America? Most of them will sell you out to the seller for a few dollars. Put your money into property you can take with you when you move, because in Latin America...you will eventually be on the move again. In other words….NEVER NEVER NEVER buy real property in Latin America. Period. I have traveled throughout Latin America and not only will I never buy any property, I will not rent anything which requires my signature or a deposit. Not worth the inevitable headaches, my friends. Mr. Buonamici’s cure all seems to be “find a good lawyer.” Ever tried doing that in Latin America? Most of them will sell you out to the seller for a few dollars. Put your money into property you can take with you when you move, because in Latin America…you will eventually be on the move again.

]]> By: pedro medina http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-1/#comment-261 pedro medina Mon, 25 May 2009 14:47:50 +0000 http://www.escapefromamerica.com/?p=712#comment-261 I agree with the comment of Mr George, you can not generalize latinoamerica, because there are many countries .... another very important point to buy property in mexico for example, you do not need a lawyer, you need to find a real estate agency and work directly with a Notary public, (who is the highest authority), I lived many years in USA and is very different how to buy a property in USA that in mexico ... I work in REAL ESTATE in this area IXTAPA ZIHUATANEJO. I born here too. So when you know very well the area and the properties, you can give a good service to folk that want to buy...WHY, BECAUSE this is small town, if you make samething wrong everbody know and we lose reputation,prestige and clients. thak you Mr Domenick: have greay day.... Pedro Medina. www.ixtapa-zihuatanejorealestate.com I agree with the comment of Mr George, you can not generalize latinoamerica, because there are many countries …. another very important point to buy property in mexico for example, you do not need a lawyer, you need to find a real estate agency and work directly with a Notary public, (who is the highest authority), I lived many years in USA and is very different how to buy a property in USA that in mexico …

I work in REAL ESTATE in this area IXTAPA ZIHUATANEJO. I born here too. So when you know very well the area and the properties, you can give a good service to folk that want to buy…WHY, BECAUSE this is small town, if you make samething wrong everbody know and we lose reputation,prestige and clients.

thak you Mr Domenick:

have greay day….

Pedro Medina.

http://www.ixtapa-zihuatanejorealestate.com

]]> By: Patti Beckert http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-1/#comment-255 Patti Beckert Sun, 24 May 2009 16:06:44 +0000 http://www.escapefromamerica.com/?p=712#comment-255 Dear Jorge, While I agree with you that the article written singles out only Latin America, and does not specify in which countries these scams may exist, I believe the purpose of the article was to raise awareness as to the scams, not place blame. I lived in Brazil for two years and am aware of most of these scams through stories told by my husband's family and friends (he is Brazilian). Brazilians take this all in stride, but it is a very big problem there. I agree that there are scams all over the world, including the USA; however in America, there is in place a title system which makes it extremely difficult to sell the same piece of property to multiple buyers, or to sell a piece of property out from under someone who legally owns it. In addition, while America does have a homeless problem, it is not such that the homeless can squat indefinitely on a piece of property making it unsellable, as can be done in Brazil. Overall, I think the writer did a good job of giving ex-patriates some rules of thumb when purchasing property in a country where they are not familiar with the laws. It opens one's eyes, but doesn't place blame. Sincerely, Patti Beckert Dear Jorge,

While I agree with you that the article written singles out only Latin America, and does not specify in which countries these scams may exist, I believe the purpose of the article was to raise awareness as to the scams, not place blame.

I lived in Brazil for two years and am aware of most of these scams through stories told by my husband’s family and friends (he is Brazilian). Brazilians take this all in stride, but it is a very big
problem there.

I agree that there are scams all over the world, including the USA; however in America, there is in place a title system which makes it extremely difficult to sell the same piece of property to multiple buyers, or to sell a piece of property out from under someone who legally owns it. In addition, while America does have a homeless problem, it is not such that the homeless can squat indefinitely on a piece of property making it unsellable, as can be done in Brazil.

Overall, I think the writer did a good job of giving ex-patriates some rules of thumb when purchasing property in a country where they are not familiar with the laws. It opens one’s eyes, but doesn’t place blame.

Sincerely,

Patti Beckert

]]> By: Land, Luxury, Leisure…Explore Pacific Mexico :: Real Estate Scams in Latin America to Avoid http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-1/#comment-250 Land, Luxury, Leisure…Explore Pacific Mexico :: Real Estate Scams in Latin America to Avoid Sat, 23 May 2009 21:27:34 +0000 http://www.escapefromamerica.com/?p=712#comment-250 [...] By Domenick Buonamici / May 09 Escape from America Magazine [...] [...] By Domenick Buonamici / May 09 Escape from America Magazine [...]

]]> By: Richard http://www.escapefromamerica.com/2009/05/real-estate-scams-in-latin-america/comment-page-1/#comment-249 Richard Sat, 23 May 2009 20:36:51 +0000 http://www.escapefromamerica.com/?p=712#comment-249 In the U.S. when a property is purchased, you receive title insurance, which prevents the scams listed in the article. In the U.S. when a property is purchased, you receive title insurance, which prevents the scams listed in the article.

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