Real Estate Buyers Beware: ANADE Warns of Rising Fraud in Tulum

The National Association of Business Lawyers (ANADE) has reported that a significant number of real estate buyers in Quintana Roo have been affected by fraud. Estrella Ríos Pérez, the head of the Quintana Roo office, has noted that the majority of these victims are from Tulum.

Ríos Pérez stated that seven out of 10 individuals who have sought help from the ANADE Quintana Roo office have been victims of fraud in Tulum. This is a stark contrast to the situation three years ago when all clients were seeking to close contracts or make sales.

One of the trends identified by Ríos Pérez is the purchase of ejido lands by foreigners who mistakenly believe they can build on these lands. These purchases are typically high-risk, and in most instances, construction is not legally permitted due to the nature of the ejidos.

Another trend is the purchase of shares instead of units, where ownership remains with the company. This often leads to confusion and legal complications. The national office has also seen cases of pre-sale fraud, with some developers offering pre-sales via social media without the necessary permits.

Ríos Pérez has noted that the real estate bubble that was once driving the market in Tulum is now collapsing. Three years ago, property values in certain areas were inflated due to speculation. However, prices have now fallen by 30 percent, presenting significant challenges for developers.

Given the rapid growth of real estate in Tulum, which represents 40 percent of the 900 planned development projects in Quintana Roo, ANADE will be hosting their second Regional Real Estate Law Conference on November 15. The conference will address issues such as fraud prevention, high-risk transactions, and the regulation of real estate growth.