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 Puerto Vallarta Real Estate | June 2007 
Investors Reassured as Arizona Regulators Act
 Gabriela Rico - Arizona Daily Star
| | A fishing boat cruises out to sea from the old port marina in front of new resort condos being developed on Sandy Beach, in the background, in Puerto Peñasco, Mexico. (Greg Bryan/Arizona Daily Star) |
At a time when Mexico is aggressively courting American real estate investors, news of an apparent scam in Puerto Peñasco has officials scrambling to assure investors it's safe to buy property in Mexico.
On May 22, a condominium developer in Puerto Peñasco, often known as Rocky Point, was slapped with a "cease and desist" order by Arizona real estate regulators after local investors reported losing more than $370,000.
The Arizona Department of Real Estate order was issued to Ignacio Chavez Moran of Fiesta de Cortez Hotel Urbanizadora Vacacional de Puerto Peñasco in Sonora.
Arizona officials said they received nearly a dozen complaints from consumers about developers taking deposits or advances totaling $378,318 for property never turned over to the consumers.
The fact that the foreign company advertised in the state and finalized contracts in Tucson and Scottsdale gave Arizona regulators jurisdiction to take action, said Mary Utley, assistant commissioner with the Arizona Department of Real Estate.
Repeated phone calls to Chavez's Tucson attorney, Roberto Salazar, were not returned Monday.
Fiesta de Cortez is a hotel-condominium complex in the Mirador area of Puerto Peñasco, said Bruce Greenberg, a Tucsonan who appraises real estate there.
The news comes at a time when foreign investment and tourism has reached the top of Mexican President Felipe Calderón's agenda, said Cecilia Gonzalez, marketing director of the San Diego-based Binational Business Network, which coordinated the Ventana de Mexico event in Tucson last month to woo investors.
In a February speech to the American Chamber of Commerce, Calderón said the Mexican government is working to ensure safe investment opportunities. In 2006, nearly $19 billion U.S. dollars were invested in Mexico, making it the fourth-largest recipient of foreign investment of all emerging economies, he said.
In Tucson last month, Mexican developers reiterated the president's sentiment.
"Our economy cannot sustain itself," said Mauricio Monroy, a Tijuana-based accountant who helps connect U.S. investors with Mexican developments near the border. "We need foreign investment."
Gonzalez said the Fiesta de Cortez situation should not scare away potential investors.
She said anyone looking to buy property in Mexico should deal with a licensed developer and can check with the secretary of tourism or Office of Promotions and Investments in Sonora or Baja California by visiting the http://www.sonora.org.mx/dynamicdata/home.asp Web site.
The real estate department has information for Americans thinking of buying property in Mexico at http://www.re.state.az.us/AZ-MEX/AZ-MEX.html
Greenberg said he recommends potential buyers look up the public reports made to the department of real estate at its http://www.re.state.az.us Web site.
The action against the Fiesta de Cortez company means it cannot advertise or solicit investors in Arizona unless an "intent to sell public report" is filed with the state. The document serves as a license, Utley said.
She said fines of up to $1,000 per incident could be imposed against Chavez if he does not comply with the order.
Next week, the Arizona-Mexico Commission will meet at the Westin La Paloma Resort & Spa in Tucson and hear from Fiesta de Cortez investors, Utley said.
For information on the upcoming meeting or to file a complaint about the Fiesta de Cortez hotel, contact Utley in Phoenix at 1-602-771-7766 or via e-mail at mutley@azre.gov.
Contact Gabriela Rico at grico@azstarnet.com. |
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