TULUM, México — In recent years, Tulum has seen a real estate boom attracting national and international investors. However, with this rapid growth, fraudulent practices have also emerged, affecting those looking to purchase property. According to the National Association of Business Lawyers (Anade), Quintana Roo chapter, seven out of ten people who approach the organization have fallen victim to real estate fraud.
Estrella Ríos Pérez, president of Anade’s Quintana Roo chapter, revealed that many individuals who come to them after purchasing a property have been defrauded. “Currently, seven out of ten people who come to us after buying a property are victims of fraud,” she stated. This starkly contrasts the situation three years ago, when 100% of clients came to finalize contracts or handle sales transactions.
Emerging Trends in Real Estate Fraud
One of the most concerning trends identified is the purchase of ejido lands by foreigners, who often believe they will be able to build their homes on these lands. However, due to the legal nature of ejidos—communal lands in Mexico—the transactions are considered high-risk, and in many cases, construction is not permitted.
Another standard scheme involves the sale of shares in buildings instead of individual units. Buyers mistakenly believe they are acquiring property ownership. However, they are purchasing shares in a company that retains ownership of the entire property, leading to legal confusion and potential losses.
Pre-Sale Scams and Lack of Permits
Ríos Pérez also highlighted the prevalence of developers offering social media pre-sales without the necessary permits. “Many buyers are not well-informed or properly advised, which constitutes a crime,” she emphasized. These pre-sale offerings, often advertised through digital platforms, lure potential buyers into making purchases without proper verification of the legal standing of the property or the project itself.
One of the main concerns is the absence of condominium property regime licenses, which can result in serious legal consequences for the buyers. Without these licenses, the properties may not be legally registered as individual units, putting buyers at risk of losing their investments or facing protracted legal battles.
Tulum’s Real Estate Market in Decline
Tulum’s once-thriving real estate bubble is beginning to show signs of collapse. Three years ago, the price per square meter in sought-after areas like La Veleta and Aldea Zama was significantly higher, fueled by rampant speculation. Prices have dropped by 30%, and developers are facing considerable challenges. Some of these difficulties stem from inexperience or unintentional errors, but the impact on the market is undeniable.
Regional Real Estate Law Congress
In response to Tulum’s rapid real estate growth—where 40% of the 900 planned development projects in Quintana Roo are concentrated—Anade will hold the second Regional Real Estate Law Congress on November 15. The event, which will take place at the Aloft Hotel in Tulum, aims to address critical issues such as fraud prevention, high-risk real estate transactions, and the regulation of the region’s real estate boom.
The congress will bring together various stakeholders in the real estate sector, offering insights into the current legal landscape and providing tools for investors, developers, and buyers to navigate the complex and rapidly evolving market in Tulum. As Ríos Pérez pointed out, this event is crucial for raising awareness about the legal risks and ensuring that the market develops sustainably and transparently.
As Tulum continues to attract international attention for its unique charm and investment opportunities, it is also becoming a hotspot for real estate fraud. The rise in fraudulent practices underscores the need for potential buyers to exercise caution and seek proper legal advice before making any commitments. With events like the upcoming Regional Real Estate Law Congress, there is hope that both the industry and the buyers will become better equipped to navigate the challenges of the local market.
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