Pre-Sale De­vel­op­ment

Cau­tions

The Playa Times Riviera Maya's English Newspaper - - Enterprise Focus - BY MEXLAW

Pur­chas­ing a pre-sale condo can have many ben­e­fits for the buyer. You will most likely re­ceive a dis­count on the sale, there are more choices of which suite you will pur­chase, and some de­vel­op­ers will al­low you to mod­ify the suite. Maybe you pre­fer a dif­fer­ent color or added stor­age, dif­fer­ent coun­ter­tops, even struc­tural changes. In Mexico, there are many ex­cel­lent real es­tate de­vel­op­ers with won­der­ful rep­u­ta­tions for get­ting their build­ing com­pleted on time but what if there are hold ups or fi­nan­cial is­sues?

There are many things you need to con­firm be­fore you pur­chase a pre-sale home. Some ques­tions to ask the devel­oper. Who is the devel­oper? What other projects do they have in town, what is their history? Does the devel­oper have a clear ti­tle for the land? Are the buyer’s de­posits held in an es­crow com­pany?

Ideally the de­posit is kept in the es­crow com­pany un­til the pro­ject is de­liv­ered or as agreed by the builder’s lawyer and the buyer’s lawyer.

En­sure it is doc­u­mented in the con­tract when the con­struc­tion will start and what will hap­pen if things do not start on time.

As we all know things may not be fin­ished on time. In­clude the de­liv­ery date in your con­tract.

If the pro­ject time runs late, is there any com­pen­sa­tion? Are you able to back out with the full de­posit?

In some cases, peo­ple have sold their pre­vi­ous home and have to wait to move into the new one. What if it is not ready for months, or you have ar­range­ments to rent it out? Is there a re­fund of the costs you will in­cur dur­ing this time?

If you move in, and the promised ameni­ties are not fin­ished, for in­stance, the swimming pool or laun­dry area is there any com­pen­sa­tion?

There is noth­ing illegal about us­ing the buy­ers de­posits to fi­nance the pro­ject in Mexico. How­ever, for your own pro­tec­tion make sure you have a lawyer to draw up the agree­ment in case there is a prob­lem fin­ish­ing the de­vel­op­ment.

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