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HomeFINANCEHow to avoid real estate fraud? experts tell you

How to avoid real estate fraud? experts tell you

  • To guarantee success in a purchase-sale, it is necessary to approach a trained real estate professional, who is part of an association or franchise
  • The deed is the central document to give certainty in an operation.
  • To avoid real estate fraud it is not enough to review the situation of the property, it is necessary to investigate how it was acquired

Mexico City June 21, 2021. Buying a home is one of the most important decisions for a person. For this reason, it is important that those who intend to acquire a home prepare and inform themselves to reduce the risk of being victims of real estate fraud.

Specialists who participated in the framework of the Expo Your New Home, a virtual event organized by the real estate portal Vivanuncios. Experts warned that when buying a home, as well as in other types of operations, there are risks of being victims of real estate fraud, so it is important to take into account some basic aspects to avoid falling into the hands of criminals.

In this regard, Fernando Rodríguez Bustamante, president of the Zona Poniente Real Estate Group (GIZP), stressed that the purchase of a home is a very important and delicate operation, due to all that it involves. In that sense, he said, it cannot be taken lightly, and it is important to contemplate a series of provisions to prevent the decision from becoming a nightmare.

“We must create awareness on the purchasing side to minimize the elements of risk that a decision like this may have. This decision can be a dream or it can be a nightmare if we do not take it seriously and leave it in the hands of those who cannot help us or simply if we are not aware that when making this type of decision and acquiring a property we have to put a little more effort to protect ourselves,” he said.

As a first element, Rodríguez Bustamante pointed out that it is important to have the support of a real estate professional. He stressed that in this case, families must ensure that those who will support them in the operation are knowledgeable about the issue. To avoid real estate fraud, he said, it is advisable to look for advisors who are part of an association or franchise, as this will guarantee that you will have the help of a professional in every sense of the word.

“It is important that the real estate consultant who helps them works in a franchise, or if he is independent that he is part of an association. And this is important because precisely we, the associations, have as a goal the professionalization of the union. The fact that an advisor is in an association will give you a guarantee that that person is qualified to be able to carry out a sale and purchase and give you the correct advice on this important decision.”

As a second point, the expert stressed that it is important to know the legal and physical situation of the property.

In relation to the legal aspect, he said, one important element is knowing the deed that protects the property. This document will allow attesting to the characteristics of the property, as well as verifying that the person seeking to sell the home is the owner.

“We have to demand this type of documents to make the decision. With the deed, the first thing we are going to verify is the name of the owner, who we are talking to. Regularly our relationship is exclusively with the advisor. But since we intend to acquire the house, it is necessary to know the owner and even ask for identification. It is also necessary to verify that the address that appears in the deed coincides with the physical location of the property.

Within the deed, he added, it is also important to verify the registration data. Bustamante explained that before making any deal, it will be important to verify that the house is correctly registered in the public registry and that it has no debts or is mortgaged.

“It is relevant that we take these types of precautions. The investigation in the public registry can be done by the real estate consultant, there are even many managers who can do it for you for very reasonable prices. You can even get this type of data through the Internet from the page of the public property registry”.

Fernando Rodríguez commented that in addition to the deed, an important document to take into account is the property ticket. In this document, he explained, data such as the square meters of the property must be verified. Specifically, match what comes in the deed.

“It is not that they have to dominate this, but the objective is to create awareness that these are points on which we must pay more attention in order to guarantee, regardless of the good work done by the advisor who helps us, to have the peace of mind that things are going well and that we are buying a good property and that tomorrow we will not be involved in a legal process”.

Notarial accompaniment to avoid real estate fraud

On the other hand, the Dr. David Figueroa Marquez, Notary 57 of Mexico City and president of the American Affairs Commission of the International Union of Notaries, stressed that for a real estate transaction to be legal, it must be carried out before a notary.

“It does not matter what the type of property is, finally you have to arrive with a notary. In the legal system that we have in the country, notaries are responsible for ensuring that the security of property acquisition is guaranteed. For this reason, we are careful to review the documentation that is required to give security to the acquirers.”

Figueroa Márquez pointed out that to guarantee that it is not a real estate fraud, the first step is to verify that whoever claims to be the owner of the property has a public deed duly registered in the public registry of the property. This document, he stated, is essential to know that the property does not have any domain limitation or encumbrance that may affect the operation.

In that order, he said, it will be important, in addition to validating the identity of the person who is presumed to be the owner, to know his marital status. This, he pointed out, to define whether he has the power to sell the property or the consent of the spouse will be needed.

The notary added that an important element to take into account is knowing how the owner got hold of the house.

“We have to know how they bought the property; know if they were made of it as a result of an inheritance. If that is the case, it will have to be reviewed because it will perhaps affect the amount of taxes to be paid. Remember that in any sale transaction there are always taxes to cover. But it is important to check how he acquired the one he bought, if he acquired it when he was married or single, or if he acquired it by donation, etc. ”.

The notary stressed that it is very important to verify that the home is free of debt. For example, he said, in addition to verifying that the property is up to date in the payment of concepts such as predial and water, in the case of real estate subject to the condominium property regime, the seller must present the letter granted by the subdivision administrator in which it validates that it is up to date in the payment of maintenance fees.

“Condominium property is not only the house where you live, it is the general context where the house or apartment is located. If the condominium owner sells the apartment and the buyer wants it and does not have proof of the condominium, he is assuming the debts of the person who sold it. Therefore, it is important to know that when a property is sold that is subject to the condominium property regime, it must have that certificate issued by the administrator.

The notary made a call to all those who seek to acquire a home to seek advice from specialists and avoid real estate fraud. In the specific case of the support of notaries, he indicated that they are open to give advice and help in the review of documents, all with the aim of guaranteeing, even before officially reaching the deed process, that the purchase can come to fruition. .

“All of us notaries conduct ourselves based on tariffs that force us only to charge for the proceedings, not for advice, therefore, they can freely go to a notary to ask for a review, to receive some advice, and he or she will It gives with the commitment that we have that things come to a happy end”.

The conferences of this third edition of the ‘Expo Tu Nuevo Hogar’ are available at the following link:

https://expotunuevohogar.mx/conferences

About Vivanuncios

Vivanuncios is the real estate portal in Mexico that receives more than a million properties for sale and rent monthly, which is why it has become the most visited real estate site in the country. In addition, it generates valuable content for home buyers and has a broad commitment to promoting and professionalizing real estate agents.

www.vivanuncios.com.mx

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