[Summary translated from the Spanish language article by Fulano.]
A new international real estate scandal that will inevitably affect Puerto Peñasco is coming. The owners of “Tessoro At Las Conchas” condominiums, who bought the property in which the property’s developers have produced a series of failures and a string of abuses since the project began, now face the unbearable cut-off of power to the building for nonpayment because of non-payment of maintenance fees.
This event, which happened last week, has caused them serious trouble, because the property lacks power to operate the elevator, and one of the owners lives on the eighth floor, and the woman is disabled. Then water service stopped because the pump does not work without electricity, which is also indispensable for other domestic uses.
The plaintiffs are Richard and Linda Chamberlain, originally from Tucson, who bought a 2,200 square foot condominium for $530,000 four years ago. Another is Doug Matthews, a resident of Phoenix, who purchased a 3,100 square foot condo 6 years ago for $1 million.
There are a total of 13 condo owners — one of which is Mexican — who say they cannot pay the homeowners maintenance fees on the 55 condominium units of their condo tower, of which only 13 were sold. The project was planned for four towers of 14-stories, but was stopped after the first tower was completed when expected sales did not occur.
|Tessoro At Las Conchas|
These complaints have not been enough to stop the active marketing of the condos. Here is a link to the website.
[Fulano’s comment: This problem Mexican property is a little different from the usual. The developer actually completed and delivered the 13 condo’s that were sold. The problem is that nobody thought about what would happen if all the condo’s did not sell. In a standard condominium project in the US, the developer would be responsible for funding any deficits in the homeowners association until a substantial number of units are sold. There would also be rules, in most cases, that each unit could not be assessed for more than its pro rata share of expenses. Also in the US, a homeowners association can enforce payment of dues by placing a lien on a non-paying members condo, and even foreclosing on it. Not in Mexico.
While not mentioned in the article, there has to be more problems for the condo owners. The employees of the HOA have to be paid and their social security taxes deposited. The government of Mexico is very serious about that. In that salt water environment, the building will disintegrate in a matter of a few years without maintenance.]