Tulum Real Estate Scams Exposed: 70% of Buyers Deceived

In Tulum, a large majority of people seeking help from the National Association of Business Lawyers (Anade) Quintana Roo division are victims of real estate fraud. The organization's president, Estrella Ríos Pérez, has noted that seven out of ten people who approach them after buying a property have been defrauded. This is a stark contrast to the situation three years ago when all clients were seeking assistance with contract closures or purchases.

A common trend identified is foreigners buying land in communal areas known as ejidos, under the assumption that they can build homes there. However, due to the legal status of ejidos, such transactions are often risky and in most cases, construction is not permitted.

Another prevalent fraud scheme involves the sale of shares in buildings. Instead of purchasing a unit, buyers are misled into acquiring shares, while the property remains in the company's ownership. This often leads to confusion and potential legal issues.

Ríos Pérez emphasized that some property developers are offering pre-sales via social media without the necessary permits, which is illegal. Many buyers are not adequately informed or advised, and the absence of condominium property regime licenses can have severe repercussions.

The real estate bubble in Tulum, which had been inflating the market, is now starting to burst. Three years ago, property prices per square meter in areas like La Veleta and Aldea Zama were inflated due to speculation. Currently, prices have fallen by 30%, and developers are encountering significant challenges, some of which stem from inexperience and unintentional errors.

In response to Tulum's rapid real estate growth, accounting for 40% of the 900 planned development projects in Quintana Roo, Anade is organizing the second Regional Congress of Real Estate Law on November 15th. The event, open to all sector participants, will be held at the Aloft hotel in Tulum and will address issues such as fraud prevention, high-risk transactions, and regulation of real estate growth.