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Thinking Of Buying Property In Mexico?

BY MARIANA LOPEZ-BUSTAMENTE

Baja California is certainly enjoying a major historical real estate boom. Nonetheless, the real estate industry has also been one of the sectors with the most complaints before the Federal Bureau of Consumer Protection (“PROFECO”).

For this reason, if you are considering buying a property for residential purposes, it is very important that you take into consideration several caveats before putting your signature on the final contract.

Generally, real estate developers have standardized purchase contracts, meaning that these contracts have been prepared by them and are normally not negotiable, except sometimes as to price and form of payment. These contracts are called Adhesion Contracts by the Federal Consumer Protection Law (the “Law”).

Protect your investments.

According to the Law, developers, brokers and any other person intervening in the marketing and sale of real estate is obligated to record their adhesion contracts before PROFECO, to prevent them from containing abusive or unfair clauses that put consumers in a disadvantageous situation.

To that end, it is important for you to know the following 10 points that you should take into consideration before signing a purchase contract.

Before signing the contract…

  1. Contract registration. Find out whether the contract model you are asked to sign has been previously authorized by PROFECO. If the contract has been authorized, it should have a registry number and authorization date. You can research Adhesion Contracts at the website: https://burocomercial.profeco.gob. mx/ by entering the contract’s registry number or the seller’s name.
  2. Seller Investigation. It is also highly recommended to investigate whether there are prior complaints lodged before PROFECO against your potential Seller.
  3. Liens. The Seller must provide all appropriate documentation showing clean title to the property, and disclose any liens affecting the same, as well as a full and precise description of the property’s characteristics, area, structure type, facilities, amenities, accessories, parking spots, additional services, among others.
  4. Delivery date. Make sure that the contract specifies the property’s delivery date.
  5. Conventional Penalties. Verify that any established penalties are fair and reciprocal for both parties. There are often cases where conventional penalties apply only to the buyer.
  6. Warranty period. According to the Law, the Seller must provide a warranty for a period of not less than 5 years regarding structural parts, 3 years for waterproofing and 1 year for all the other items of the property. All terms start running upon delivery of the property.
  7. Jurisdiction. The “jurisdiction” clause is the “forum and choice of law” stipulation. It is crucial because it indicates the place where any eventual complaints should be filed and the law that will apply to their resolution. Naturally, the forum and the applicable law should preferably be that of the place where the property is located and not of the place of the Seller’s location, because this would put you in a very disadvantageous position.
  8. Lopsided provisions. Given that these contracts are prepared by the sellers, it is strongly advised that you pay close attention to all clauses imposing obligations and duties to the buyer. We have seen contracts where the buyer is obligated to purchase blinds and other items such as finishing decorations unilaterally selected by the seller and from suppliers that are also unilaterally selected by the seller.
  9. Termination of the Contract. The contract must indicate the termination procedure and the corresponding implications to each party, and given the cause, you must review the terms and conditions regarding refunds.
  10. Down payment. The seller has no right to request any payment until the agreement has been formalized by a written contract, except for any investigation expenses. Taking the previous recommendations into consideration will  diminish the risks of exposure in your real estate investment; however, we highly recommend that you always seek professional legal advice to review and determine the contract’s full terms and conditions and duties to the buyer. We have seen contracts where the buyer is obligated to purchase blinds and other items such as finishing decorations unilaterally selected by the seller and from suppliers that are also unilaterally selected by the seller.

Mariana Lopez-Bustamante is part of the legal team at SANCHEZ Y ASOCIADOS, a Tijuana based law firm that specializes in real estate transactions for foreigners. You can reach them at their office in Blvd. Agua Caliente 10611-507 in Tijuana, call them at +52 (646) 686-4137 or email at mlopezb@scaabogados.com.

All Aboard the Rosarito Restaurant Tour

You keep telling yourself, “I just have to try out (enter Restaurant Name here),” and you never quite get around to it. Well, no more excuses. Welcome to the Baja Tourism Promotional Restaurant Tour, organized by Scot Richardson of Once Upon a Time in Rosarito and Angie Gomez. The photo team also included Linda C Daly, Chris Gallo, Chris Lord.

Recently 50 Rosaritenses boarded a tour bus for eleven restaurants in eleven hours, visiting eateries from Magana’s in the south, the Charly’s Taqueria at k37.

Read more

Ensenada Stepping Up Its Game

Now She’s More Popular Than Ever Before!

Long known for her potential, Ensenada was nicknamed “Cinderella of the Pacific,” and that moniker was appropo for decades; recently, however, the City has begun a metamorphosis from a diamond in the rough to a highly polished gem.

The progress began with almost no fanfare back in February, when Mayor Novelo’s massive street repair program began to dramatically change the complexion of Zona Centro and other key regions of the City. Once pothole-infested roadways became smooth, safe and well-marked, making it easier and more pleasant for residents and visitors alike to travel to their destinations of choice.

Since that time, investors both foreign and domestic have been pouring resources into the City in the form of new condos, hotels, residential renovations and retail establishments. Back in february we brought an article to you that heralded one of the first of such major investments with the announcement of the Viento complex, which combined 167 condos and guest accommodations (in a City Express Hotel) with on-site recreational facilities, as well as retail support markets and a food court, that essentially made the triple towers a totally self-contained living environment.

That opened the floodgates, and as of this writing, it is difficult to keep up with the almost frenetic pace of new construction, expansion of existing structures, renovations, upgrades and the opening of a myriad of enthusiastic and optimistic businesses, large and small.  The construction of a Holiday Inn in Zona Centro is nearing the completion of its external shell; a new Kia dealership is rising up near CEARTE and a City Express Hotel is being built next to the Dodge dealershp, across from the Marine base on Blvd Costero..

One of the most explosive growth areas currently is the Playa Hermosa sector. Many new restaurants and cafes have popped up along Blvd Costero (aka Blvd Lazaro Cardenas), the beautiful coast highway that brings motorists from up north into the City, and carries them alongside the beach and the malecon, Ensenada’s most popular recreational area.

The Playa itself has been given a makeover by the federal government, with the installation of palapas, observation posts, winding boardwalks from the wide sidewalk that’s skateboard, roller skate and bicycle-friendly, down to the broad, sandy beach, and, recently, an “Ensenada” banner, which tourists and locals alike are proudly using as a backdrop for postcard-worthy photos.

The hottest story on the Playa right now is the ongoing construction of a shopping plaza, which is being built entirely from modified cargo containers! Yes, those unsightly metal boxes that have been piling up at the ports of Ensenada and El Sauzal are being finally being put to constructive use, customized and arranged into what is going to be a modern, open, unique shopping plaza that will feature eateries and various retail outlets, with an incomparable view of the bay, from the port of Ensenada to the towering hills of La Bufadora!

The beachfront property was leased from API (the revenue service of the waterways) by a conglomerate of private investors That group enlisted the services of Maganas (“herreria y estructuras”) as lead contractor on the project.

Maganas has already begun arranging the containers on the property, and is cutting openings in strategic parts of the boxes to allow for windows, doors and canopies; they’re also pouring slabs to create patios outside the units. Cranes are lifting boxes up to create 2-story units, with stairways leading up to observation areas and additional retail spaces.

Jorge Hernandez, on-site manager for Maganas’ construction project, said that the project is in its infancy; more containers are scheduled to be brought to the site, and that the area allotted for the plaza has room for a potential plethora of outlets.

That area of Playa Hermosa is adjacent to the spacious paved enclosure which has been the site for car shows and numerous other recreational events.

It’s a frequent host to tourists, bused in from the cruise ships to enjoy the view from an on-site observation deck, where they are served Puerto Vallarta-style by the nearby restaurants and coffee shops; waiters from those establishments can be seen running from their cafes and cocinas, across the Boulevard to the waiting tourists, bringing them everything from fresh coffee to hot tamales.

It won’t be long before those same tourists will be able to walk from their observation post to a unique new shopping plaza, where they can wine, dine and go shopping at a myriad of creative new outlets.

Cinderella has kicked off her glass slippers, and is dancing to the tune of a long-awaited renaissance.

Need To Phone The Cops?

Hopefully you haven’t been there yet. And hopefully you never will be.  But if you need to call the police and can’t speak Spanish, this is the app for you. Or, if you’re feeling a little bit apprehensive about living here, this is the app for you. Or if you think your concrete house is going to burn down this is the app for you. Read more

Ensenada’s Restaurant Scene: Il Massimo Cucina Italiana

This week we visited Ensenada’s newest authentic Italian food establishment; it’s a small, fresh and well-lit restaurant called Il Massimo Cucina Italiana, brought to us by owner and chef Massimo Zaretti, born in Rome, Italy, and raised there until his family migrated to California when he was 13 years old.

This is his first restaurant, although he is no stranger to the restaurant business, he grew into the restaurant business as his father was a successful restauranteur until his retirement, and Massimo himself has amassed more than 20 years’ experience working in such prestigious restaurants around the world as the St. Regis in Thailand, the Grand Hyatt in Singapore, the Hilton in Tokyo, The Wolfgang Puck Catering in Vegas and many more.

His cuisine evokes the freshness of the Mediterranean Sea, which is reflected all-around in the classy setting he offers his clients, an ambiance embellished with bright colors and pictures of Italian seas and Rome.

As we entered the restaurant, Massimo opened the door and greeted us, checking in with us and other clients during our dinner.

The wine list offers a small but reasonably priced selection of local wines from our valleys, which Massimo says will be expanding as he gets to know more of the local wines. You can always bring your own bottle of wine by paying a service fee of $8 USD or buy one bottle from his list and he will waive that extra fee for the one you brought.

My wife and I started our dinner with a couple of delicious mini-Caprese appetizers, freshly made pesto and bread that was brought to us, on the house, while we waited for our real appetizers: Tentacolo di Polpo which are octopus tentacles marinated and lightly fried in olive oil, accompanied with fried leek slices. I have tried variations of this appetizer in different places around Baja and I will have to say that these were the best, crispy on the outside and tender and flavorful on the inside.

Since we liked the mini-Caprese we decided to go for a full-size one which traded the halved cherry tomatoes for slices of locally grown heirloom tomatoes and basil, fresh mozzarella and a drizzle of Pesto, very refreshing.

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For main dishes we decided to go with the pasta, choosing the Cannelloni al Forno, which are made-from-scratch cannelloni filled with a mixture of ricotta, spinach and béchamel sauce covered in an incredibly delicious marinara sauce with cheese; you can’t go wrong with these!

We finalized our meal with a Panna Cotta de Rosa, which melts in the mouth leaving a delicious rose aftertaste, and Massimo’s own Tiramisu made with Nutella and banana slices instead of the usual coffee and cocoa flavors.

At the end of your meal, the staff will serve you one of the house’s aperitifs, which depending on what is planned for the day, could be limoncello, arancello or chocolate liquor.

The recently opened Il Massimo is going straight to the top of my authentic Italian restaurant’s list. Not only does this place offers great food at very reasonable prices (entrees go from $9 to $13 USD), but they offer great service, something that is not always easy to find around here.

Il Massimo is open Tuesday to Sunday from 1 PM to 10 PM and is located in Boulevard Costero #987 right next to Subway. Reservations can be made by calling (646) 977-7089. Parking space is available alongside the restaurant.

Do I Really Need a Visa To Live Here?

Only if you want to have legal status

The exact number of foreigners living in Baja is high, but there is no way to tally them accurately unless they are registered with INM, the National Institute of Migration. Perhaps as few as 10 – 15% of foreign residents possess a valid visa. INM is equal to the United States’ Customs and Border Patrol (CBP), except for customs issues that are conducted by SAT, the Tax Administration Service. Read more

Good News For Local Veterans

AVCO Scores Additional Benefits and New Service Bureaus

McCail Smith Jr is a retired U.S. Navy veteran who suffered PTSD as a result of injuries incurred during active duty in the Vietnam conflict. As a result of his injuries, the VA granted him partial disability benefits. Read more

Rosarito Theater Guild Brings New Play

“Shirley Valentine” starts Sept. 22

A real treat awaits you at the Rosarito Theatre Guild in just a few days. The RTG put on this play, “Shirley Valentine”, written in 1986 by Willie Russell, about eight years ago, and there has been a quiet groundswell for a reprise ever since. So finally the groundswell succeeded and it’s here! Read more

Santa in September

Let’s help out the kids early this year

Christmas shopping comes early this year. Hearts of Baja Children’s Homes Network is operating a toy drive the month of September, requesting new, unwrapped toys that DON’T require batteries, for children aged 0 – 16 years of age. Read more

Cargo Ship Containers Make Suitable Homes

Some Places Are Using Them to Ease the Homeless Problem

One of those places is Midway, California, where a major project was undertaken to ease the heartbreaking situation of homeless military veterans there. The cargo containers had been accumulating exponentially since the countries of origin (primarily China) realized that it was more cost-effective to abandon the big steel boxes at their destination points than it was to pay to have the empty crates shipped back to be refilled and reshipped. Read more

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