Is buying real estate in Mexico still safe?

Mazatlan, Sinaloa.- The Federal Domain Extinction Law was passed almost three months ago and nobody is talking about it, even if it represents a risk.

On July 25, the Chamber of Deputies approved this decree of law, which empowers the Government to recover real estate related to organized crime.

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But only Article 7 of the decree of this Law, published in the Official Gazette of the Federation, reveals that “The action of extinction of ownership will proceed over those Assets of a patrimonial nature whose Legitimate Origin cannot be accredited, in particular, Assets that are instrument, object or product of the illegal acts, without prejudice to the place of its realization ”.

CONDOMINIUMS

And despite the intentions of the Federal Government to want to ‘sweep’ the stairs from top to bottom, the Private Initiative has expressed concern about the decree.

Resultado de imagen para Luis Peraza Reyes
Luis Peraza Reyes Mazatlan AMPI President

“That law is difficult to regulate, you can not rent to anyone, because a person who makes an illegal act within that condominium (or property) because practically the government will take it away from you,” said Luis Peraza Reyes, President of the Mexican Association of Real Estate Professionals, AMPI, in Mazatlan.

Rodrigo Llausás Azcona,

For Rodrigo Llausás Azcona, president of the Council of Notaries of Sinaloa, this decree creates uncertainty, even though the real intention is to ‘hit’ organized crime.

“There are doubts if this law could go further; one of the problems that worry is that there is no requirement to have a definitive sentence to have previously seized confiscated assets, assets that have any relation to money laundering or organized crime, ”he said.

Condominiums Archive

This law, he explains, could affect anyone who is dedicated to the rental of real estate, even if it is the tenant who misuses the space.

Llausás Azcona added that a good can be confiscated by the State at any time and even warned that the property can be sold as long as the trial continues open, as the authority will act according to its own criteria and needs.

“The correct thing would be to wait for the results of the trial so that, in the event that the individual who was affected by the extinction of the confiscation domain is favorable, then it will be returned immediately, because if it goes to auction (then) it would affect the owner and the total amount of the value of the property would not be returned to him, but that all the expenses of the auction of the same would be deducted from him… I consider that this is incorrect: it violates guarantees of legal certainty of due process, individual guarantees and human rights, which It is the great concern of individuals, ”he said.

Condominiums Archive

On the other hand, the former president of the Association of Tourist Real Estate Developers, ADIM, and now president of the Council of Consultation and Participation of the Citizenship of the Municipal Public Security Council, Octavio Jorge Cortés, reinforced the opinion of Llausás Azcona.

“The bottom line is good, the form is not yet well studied, because the criteria they use are quite ambiguous, so you cannot say ‘well this guy did wrong, take him away’, because tomorrow when they finish their legal process It turns out that this person went well from the legal process and they can no longer return the good and can not compensate him for having taken that good from him… that is the only problem with the law of domain extinction right now, ”he said.

Therefore, the vice president of the teaching sector of the Mexican Association of Public Accountants Colegio Profesional Mazatlán, Waldir Núñez, called on the authorities to resume this law to ensure that organized crime can be combated without affecting third parties.

“We are demanding that the law be clear, we know that it is the beginning, that it is going to be polished, that we must define it well; yes we are trying not to make a front but to ask that it be analyzed in detail and that we have no problems with people who are not involved in the activities that the government seeks to combat, ”he said.

Resultado de imagen para Ley de Extinción de Dominio

For details about the Ley Federal de Extinción de Dominio, law click here

Source: reaccion informativa

The Mazatlan Post

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